The Kentucky Unemployment Bridge Program (UBP) is a new forgivable loan option for eligible homeowners to assist them in making their mortgage payments.  To be eligible, the homeowner must have experienced a job loss or reduction in income due to changing economic conditions, through no fault of their own, and demonstrate a need for assistance.  

The UBP is not for job or income loss due to divorce, death, or disability.

The maximum amount of assistance is $20,000 or 12 months, whichever occurs first.  Of the $20,000, the maximum amount that may be used for reinstatement–all related fees and payments to bring your loan(s) current–is $7,500. 

Participants must meet the following guidelines and the mortgage must be with a participating servicer.

• Maximum amount of liens on the property cannot exceed $275,000.
• Maximum of two liens permitted on the property.
• Borrower’s principal, interest, taxes, and insurance (PITI) must exceed 31 percent of the gross monthly income, or
• Borrower must experience a 15 percent reduction in employment income.
• Maximum liquid reserves is six months PITI (excluding retirement funds).
• Borrowers must sign a hardship affidavit acknowledging the reduction in income due to no fault of their own.
• UBP is only available to borrowers whose mortgage servicing company agrees to partner with Kentucky Housing Corporation.  A borrower cannot receive assistance if their servicer has not enrolled as a participating servicer.
  • If a second mortgage servicer IS NOT on the participating servicer list or if the borrower is willing to continue making the second mortgage payments WITHOUT UBP assistance, the borrower must complete the UBP Second Lien Notice.
    
    Contact Jennifer Murphy, Housing Counselor at (606)743-3133 for assistance.
    
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