Eligible New Jersey homeowners whose finances were affected by the COVID-19 pandemic can apply starting Tuesday for up to $35,000 in state assistance to cover housing-related expenses.

The application portal opens at 9 a.m. at njerma.com. Those without internet access can call 855-647-7700 for assistance.

The $325 million Emergency Rescue Mortgage Assistance program can cover up to four mortgage payments, delinquent property taxes, homeowner’s insurance, mortgage reinstatement assistance, escrow shortages or payments to lienholders, according to the Housing and Mortgage Finance Agency, which is administering the program.

The assistance is an interest-free, non-amortizing forgivable loan, recorded as a subordinate lien lasting three years. Families must repay the assistance they received if they sell their home or receive cash back from refinancing within three years.

Applicants must meet the following requirements:

• Earn no more than 150% of their county's median income. To see if you qualify, visit tinyurl.com/countymedianincome.
• Have suffered a COVID-19-related hardship that began on or after Jan. 21, 2020.
• Have a loss of income or increase in COVID-19-related expenses.
• Are behind on mortgage or other eligible housing-related expenses or have a forbearance balance or escrow shortage.
• Mortgage or other housing costs must not have been 30 or more days delinquent before Jan. 21, 2020.
• Unpaid mortgage balance must not exceed program limits for property type.
• Your servicer must be willing and able to accept and apply the program funds.

The house must be in New Jersey, be the applicant's primary residence and have no more than four units. It can include a detached house, condominium or manufactured home.

Under the program, a homeowner can refinance a mortgage to obtain a lower rate or different term length.

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Homeowners who received assistance through the state's Hardest Hit Fund programs, such as HomeKeeper and HomeSaver, can apply for this new fund.

The following documents will be required:

• Government-issued ID: For all adults living in the property, and all mortgagers and spouses, a New Jersey driver's license or non-driver ID card, passport, military ID.
• Four weeks of proof of income: Pay stubs, Social Security Disability Insurance (SSDI), Supplemental Security Income (SSI) or award letter, pension or retirement statement or award letter.
• Two months of bank statements: For all adults living in the property, all mortgagers and spouses, statements for all non-IRA accounts. Must have all pages for each of the statements to be reviewed.
• Tax returns and signed 4506C: For all adults living in the property, all mortgagers and spouses, all federal tax returns since 2019 and a signed 4506C form.
• Mortgage statement: Most recent mortgage statement for all mortgages on the property.
• Other documents: If self-employed, current and prior years' profit and loss statement; signed lease agreements for multi-family properties; proof of increased COVID-19 expenses (bill and receipt); bankruptcy documents; "any other miscellaneous documents the applicant feels is important to share and to be considered for program assistance."

Congress allocated these funds in a Homeowner Assistance Program within the federal stimulus American Rescue Plan last March.

Source: Yahoo News