Military Homeowners Assistance Program (HAP) Expanded

The Military Homeowners Assistance Program has been expanded to help members who have been ordered to Permanently Change Stations (PCS). The military loves to abbreviate everything so the program is affectionately known as HAP. I was in a class yesterday given by one of the directors at the Savannah HAP Field Office. Here is the information he relayed to us.

HAP was initially designed in 1966 to provide monetary relief to service members (including Coast Guard) and federal employees who suffer financial loss on the sale of their home (primary residence) due to base closure or realignment. In 2009 Congress passed the American Recovery & Reinvestment Act (ARRA) which expanded HAP to service members with permanent reassignment orders. The following are the eligibility requirements:

Eligibility Requirements

1. Active Duty military personnel only.
2. PCS orders dated 1 Feb 2006 thru 30 Sep 2010 (subject to funds availability).
3. Must have purchased home prior to 1 Jul 2006, and sold home after 1 Jul 2006.
4. County and City home values must have declined at least 10%.
5. Individual home value must have declined at least 10%.
6. Members can only receive benefits from this program once.
7. Property is/was member's primary residence.
8. Member orders must move them at least 50 miles (duty station and home).
9. Member must have been in the military prior to purchasing the home.
10. Retiring personnel - only mandatory retirements eligible.

Note - HAP will not reimburse or pay-off second mortgages, including equity lines of credit, unless obtained when the home was purchased, or funds were used to improve the home.

Private Sale Reimbursement Calculations:

90% of original purchase price - sales price + closing costs (including Realtor fees).

Example:

• Purchase Price of $200K X 90% = $180K
• Applicant sells house for - - $150K (mortgage paid at 150K)
  
• $30K
• Closing Costs (7% of sales price) $10,500
• Total = $40,500

On very rare occasions the government may employ the government acquisition program. This occurs only after you were not able to sell your home within 120 days and it must be approved by military headquarters at the Army Corp of Engineers (HQUSACE) in Washington DC. If approved the applicant may be eligible to receive the greater of 1) 75% of the purchase price, or 2) Mortgage payoff.

For more information visit the HAP Website, or contact Michael Johnson at 843-817-5299.

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