Program to help underwater Nevada homeowners announced

CARSON CITY - A new pilot program could help many Nevada homeowners underwater on their mortgage lower their loan amount and refinance their debt.

Under the program announced Friday, eligible homeowners can receive up to $50,000 from Nevada's Hardest Hit Fund to reduce their principal and refinance their loan at lower interest rates.

It applies to owner-occupied homes with mortgages that originated before May 31, 2009 and are backed by Fannie Mae or Freddie Mac.

A homeowner's mortgage balance must be at least 115 percent of the value of their home and cannot exceed $729,750.

Additionally, family income cannot exceed 150 percent of median income for the area.

In Clark County, where the program is being launched, the income threshold is $99,000 for a family of four.