The Mortgage Payment Program
Assistance Will Be Provided in the Form of a Loan
Once you have been approved for MP1P Assistance, the funds used to pay your monthly mortgage payment(s) will be paid by North Carolina Housing Finance Agency (“the Agency”) directly to your loan servicer on your behalf following the loan closing.
- The assistance you receive will be in the form of a 0% interest, non-recourse, deferred-payment forgivable loan which will be subordinate to your current mortgage(s).
- Your MPP loan will be forgiven in full after 10 years provided that you remain in the home. After the fifth year of the loan, the MPP loan amount will be reduced by 20% per year every year provided you stay in the home. If the home is sold, refinanced, or is no longer owner-occupied prior to the loan maturity date, the loan must be paid back.
- Refinanced Clarification: If you refinance your mortgage(s) to receive more favorable loan terms, your MPP loan will remain subordinate to the refinanced mortgage. If you refinance your loan to consolidate debt or to receive cash out, you will be required to repay the MPP loan according to the loan terms.
- At this time, the IRS states that the forgiven portion of the MPP loan will not be included in the income of the homeowner on federal tax returns.