The N.C. Foreclosure Prevention Fund is offered by the North Carolina Housing Finance Agency, a self-supporting state agency, using funds provided by the U.S. Treasury.

Assistance for Veterans


Transitioning from military to civilian life can be daunting, particularly if you are struggling financially while you are  trying to begin a new career. If you are a returning veteran and are having trouble making your mortgage payments, the N.C. Foreclosure Prevention Fund may be able to help you while you look for work or complete job training.


The program offers zero-interest, deferred  loans up to $36,000 to cover your mortgage and related expenses for up to 36 months while you search for or train for a new job. If you are enrolled in vocational rehab or are using another eligible VA program or benefit, such as the GI Bill, you will receive assistance for 36 months unless you find a job sooner. You don’t need to be behind on your mortgage payments to seek help.  To be eligible, you must provide

  • a Certificate of Release of Discharge from Active Duty (DD214) with a separation date on or after January 1, 2008
  • a VA-issued, non-expired certificate of eligibility
  • proof of enrollment in an eligible VA-sponsored program or benefit.

 

When your application is received and your eligibility is confirmed, the N.C. Housing Finance Agency may place a temporary stay-of-foreclosure for up to 120 days so that the company that owns your mortgage cannot foreclose on your home or take other legal action while your loan application is under review. If you qualify for the loan, the N.C. Housing Finance Agency will make your mortgage payment directly to your loan provider or bank. At the end of the assistance period, you will resume making your mortgage payment.

 

If you remain in your home for 10 years, the loan will be forgiven, and you do not have to pay it back. After you have lived in your home for five years, the loan is reduced by 20 percent a year for years six through 10 until you owe nothing. You repay the total amount only if you sell or refinance the home in the first five years, and only if the sale proceeds are sufficient to repay it. Please note that if you refinance your property for better loan terms, we will subordinate our second mortgage; however, if you refinance to consolidate debt or take out cash, the second mortgage loan must be repaid.