Federal Home Refinance Program

CHICAGO (WREX) -

Illinois officials have announced a new program designed to help homeowners who are underwater on their mortgages, making the state one of two to offer a refinancing program using federal funds.

The Illinois Housing Development Authority says the I-Refi program will offer federal assistance to income-eligible homeowners who are current on their mortgage payments, but owe more than their home is worth due to declining property values. Officials say the program will offer up to $50, 000 in federal funds to help homeowners reduce the balance owed on their mortgage, and help owners refinance into a new, 30-year fixed-rate mortgage based on their home's market value.

IHDA Executive Director Audra Hamernik says the program is aimed at those who are still struggling after the housing crisis of 2008.

“The recovery has been uneven, and many neighborhoods are still struggling, " Hamernik said, "By helping people refinance into a sustainable mortgage that is in line with the value of their home, we are offering a lifeline to entire communities as they regain their footing.”