How does Biden’s $ 10 billion Homeowner Assistance Fund help you?
On March 11, President Biden enacted the US bailout, the latest COVID-19 relief bill. The bill includes provisions designed to help help homeowners pay off their mortgage.
The bill allocates $ 9.9 billion to the Homeowners Assistance Fund (HAF). This fund helps homeowners struggling financially due to the ongoing coronavirus pandemic. It includes provisions such as providing financial assistance to homeowners who are struggling to make their monthly payments.
Along with the assistance programs, these homeowners may also consider options such as reducing their monthly payments by refinancing their mortgage at current historically low interest rates. You can explore your home refinancing options by Credible visit to compare rates and mortgage lenders.
WILL YOU STILL CONSIDER A MORTGAGE REFINEMENT? WHY YOU SHOULD ACT NOW
What is the HAF?
The HAF is providing money to states to instill payment assistance programs to help homeowners who have been affected by COVID-19. These funds will allow states to set up programs to provide financial assistance to help homeowners prevent foreclosures.
The Biden administration has expanded the model provided by the Hardest Hit Fund, a program that was put in place in 2010. With HAF, states will apply for funding and the amount they receive will be based on the number of unemployed in that. State.
How can owners access HAF money?
Anyone who started experiencing financial hardship after January 21, 2020 is eligible to apply to the HAF, according to the National Consumer Law Center. Homeowners can use these funds to pay for the following qualifying expenses:
- Mortgage payments
- Housing costs due to abstention
- Main reduction
- Expenses such as utilities, internet, HOA dues, or insurance
States will request the funds and the Treasury Department must begin making payments within 45 days of the law being enacted. From there, states will decide when homeowners can begin applying for financial assistance.
However, it is still unclear exactly how homeowners will apply for HAF funds. Community organizations are likely to help homeowners apply for payment assistance programs.
If you don’t have time to wait for the HAF fund, there are other options available. Mortgage refinancing is a great way to lower your monthly costs and save money over the life of the loan. You can visit Credibl to see loan options from several mortgage lenders.
HOW TO REDUCE YOUR MORTGAGE PAYMENTS DURING COVID-19
How to get mortgage relief now
If you need financial help right now, the first step is figuring out what type of mortgage you have. Once you have that information, here are some ways to access relief beyond what assistance programs provide:
- Refinancing: The rates for a 30-year mortgage are currently 3.04% and the rates for a 15-year mortgage are 2.35%. So if you need a way to lower your monthly payments, refinancing your mortgage could be a great way to save money on your mortgage. To learn more about your options, visit Credible to get pre-qualified rates without affecting your credit score.
- Pending foreclosures: If you have not been able to make your monthly mortgage payments, your mortgage officer cannot begin the foreclosure process thanks to the Consumer Financial Protection Bureau (CFPB), which has put an end to foreclosures for all types of mortgages, including private and government guaranteed loans such as Fannie Mae or Freddie Mac, FHA loans, VA loans, and USDA loan, through 2022. However, homeowners still need to be careful as those who do not request forbearance could still fall behind on their home loans.
- Loan forbearance: If you can’t make your mortgage payments, you can contact your lender and ask for forbearance. Forbearance allows you to make reduced payments or even forgo your monthly mortgage payments altogether. And the Biden administration has extended the forbearance window to June 30, 2021. Homeowners can request forbearance for COVID-related hardship for up to one year, with the option to extend the forbearance period. twice with extensions of three months each time.
WHAT TO DO AT THE END OF YOUR MORTGAGE FORBEARANCE
If your loan is owned by Fannie Mae or Freddie Mac or if it is any other government loan such as a VA loan, USDA loan, or FHA loan, then you are eligible for mortgage forbearance for up to 18 months. if you apply before June 30, 2021. All penalties will be waived and this information will not appear on your credit report. Homeowners do not have to provide proof of their hardship.
After the forbearance period is over, mortgage managers cannot force homeowners to pay a lump sum to make up for missed payments, but can explore other options such as loan refinancing, increasing payments future monthly payments to make up for missed payments. over time or by adding up any missed payments at the end of the loan period.
If you have built up some equity in your home, another option is cash refinancing. This allows you to refinance your home at a lower interest rate and withdraw money for the equity you’ve saved in your home. You can use these funds to pay for necessary expenses or to pay off high interest credit card debt. If this option sounds appealing, your best bet is to visit an online marketplace like Credible to see your refinance rates.
Help is available for homeowners in difficulty
It is still unclear when borrowers will be able to access HAF funds. But if you’re struggling financially, mortgage help is available. If you want to learn more about refinancing, visit Credible to speak with a mortgage expert and get your questions answered.
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