HUD now accepting applications for mortgage assistance from Minnesotans

More than 1,400 Minnesotans are facing foreclosure, but a new federal loan relief program is now available for homeowners in the state who are behind on their mortgage payments, according to the Minneapolis Star Tribune.

Starting July 5, the paper reports Minnesotans can apply to the Department of Housing and Urban Development's Emergency Homeowners' Loan Program, which was launched in June. Of the $1 billion that was set aside for the program, Minnesota received $55 million.

"This program will offer an important lifeline to a large segment of homeowners who otherwise struggle to find options to stay in their homes," said Julie Gugin, director of the Minnesota Homeownership Center, in an interview with the Star Tribune."

In order to qualify for the loan, homeowners must satisfy certain requirements: They must have an annual income that's less than $75,000, and they must have had an income decline of 15 percent or more due to unemployment.

Though homeowners may meet the financial standards to receive assistance, bad credit may disqualify them. This may be due to unfair or inaccurate marks on their credit report. By working to investigate and dispute these items, borrowers may be able to get their finances back on track and qualify for mortgage aid.