Lawn mower loan forgiveness program expands as banks and insurers weigh options
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The Department of Housing and Urban Development said Monday it will expand its loan forgiveness efforts to cover mortgage loan holders who use lawn mowers, grass mowers and other garden-focused products.
HUD will allow borrowers to apply for loan forgiveness if they use the products to mow lawns, cut lawns or build garden gardens, among other uses.
It’s the first time that HUD has allowed borrowers to request a loan forgiveness when they buy a new lawn mower, a new garden equipment, or other garden products.
The agency said that borrowers who use these products for landscaping or maintenance, landscaping, landscaped yards, lawn and garden equipment and other lawn-related activities could be eligible for loan relief if they pay $1,500 or less on their mortgage or consolidate with a higher-income borrower.
The agency said it is working with lenders, who are offering a variety of loan forgiveness options.
The program will be available to borrowers who have not yet applied for a mortgage or who are at least 80 percent eligible for a lower-cost loan, the agency said.
“We have heard from many homeowners who want to use these types of products to extend their lives, and this program provides a solution to that request,” said Dan Hynes, HUD’s deputy assistant secretary for economic development and community development.
More: The U.S. is on track to lose more than two million jobs over the next decade, a trend that will intensify if a growing number of people leave the labor force, according to a report released Monday by the Center for Economic and Policy Research.
Lenders are scrambling to adapt to the changing economy, and they need to make the right investments to remain competitive, said Robert Hall, a senior adviser with the center.
The Department of Housing and Urban Development said Monday it will expand its loan forgiveness efforts to cover mortgage loan…