$3 billion more for jobless homeowners

By Hibah Yousuf, staff reporter


NEW YORK (CNNMoney.com) -- The Obama administration is making $3 billion in additional funds available to help troubled homeowners avoid foreclosure.

One part of the plan, announced Wednesday, includes a new $1 billion program that will offer loans to unemployed borrowers at risk of losing their homes. The loans, which will be dispersed through nonprofit and housing agencies, will carry 0% interest and be good for a maximum of $50,000 for up to two years.

The government's department of Housing and Urban Development said it will announce details about the program, coined the Emergency Homeowner Loan Program, in the coming weeks.

Hardest Hit Fund: The administration also added $2 billion in support for its program that helps struggling homeowners in the states with highest unemployment rates.

The government previously announced $2.1 billion for 10 of the hardest hit states. States were required to put together proposals on how they would use the money, and the Treasury finished approving those plans earlier this month

The additional $2 billion announced Wednesday will expand the program to a total of 17 states, and the nation's capital, all of which have suffered unemployment rates higher than the national average for a year.  To top of page