How is the $ 10 billion Biden Homeowners Assistance Foundation helping you?

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If you are late with your mortgage payments, the Homeowners Assistance Fund can provide you with the help you need. (iStock)

On March 11, President Biden signed American Rescue Plan into law, the most recent COVID-19 relief bill. The bill contains provisions to help pay assistance to homeowners who do not pay mortgage payments

The bill allocates $ 9.9 billion to the Homeowners Assistance Fund (HAF). This fund is helping homeowners tackle financial hardship due to the ongoing coronavirus pandemic. It includes provisions such as providing financial assistance to homeowners who struggle to make their monthly payments.

Along with assistance programs, these homeowners may also consider options such as reducing their monthly payments by refinancing their mortgage at historically low interest rates today. You can explore options for refinancing your home, visit Credible compare rates of mortgage lenders.

ARE YOU STILL CONSIDERING REFINING A MORTGAGE? WHY YOU SHOULD ACT NOW

What is HAF?

HAF is providing money to states to implement payment assistance programs to help homeowners affected by COVID-19. The funds will enable states to create programs to provide financial assistance to homeowners in foreclosure prevention.

The Biden administration expanded on the model provided by the Hardest Hit Fund, a program that was created in 2010. Under HAF, states will apply for funding, and the amount they receive will depend on the number of unemployed people in that state.

How can homeowners access HAF money?

Anyone who started experiencing financial difficulties after January 21, 2020 is has the right to apply for HAF, according to the National Center for Consumer Law. Homeowners can use these funds to pay the following qualified expenses:

  • Mortgage payments
  • Housing costs due to indulgence
  • Basic reduction
  • Expenses such as utilities, internet, homeowners association fees, or insurance.

The states will ask for funds, and the Treasury Department must begin payments within 45 days of the law’s entry into force. From there, states will decide when homeowners can apply 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 with the HAF, there are other options. Refinancing your mortgage is a good way reduce your monthly expenses and save money over the term of the loan. You can visit Credibleto view loan options from multiple mortgage lenders.

HOW TO REDUCE MORTGAGE PAYMENT DURING COVID-19

How to get mortgage help now

If you need financial help right now, the first step is to find out what kind of mortgage you have. Once you get this information, here are some ways. easier access in addition to being provided by assistance programs:

  • Refinancing: 30 year mortgage rates currently are 3.04%, and mortgage rates for 15 years – 2.35%. So if you need a way to lower your monthly payments, refinancing your mortgage loan can be a great way to save money on your mortgage. To find out more about your options, visit Credible to pre-qualify without affecting your credit score.
  • Foreclosures suspended: If you are unable to make your monthly mortgage payments, your mortgage office cannot begin the foreclosure process thanks to the Consumer Financial Protection Bureau (CFPB), which foreclosure stopped for all types of mortgages, including private and government-backed loans such as Fannie Mae or Freddie Mac, FHA loans, VA loans and USDA loan, through 2022. become overdue on home loans.
  • Deferral of a loan: If you are unable to make payments on your mortgage, you can contact your lender and request patience… Patience allows you to cut back on your mortgage payments or even give up your monthly mortgage payments. And the Biden administration expanded the window of the statement on abstinence until June 30, 2021. Homeowners can request an abstinence permit for COVID-related issues for up to one year, with the option to renew the abstinence period twice, with a three-month renewal each time.

WHAT TO DO WHEN THE MORTGAGE CONTINUES

If your loan is owned by Fannie Mae or Freddie Mac or any other government loan such as VA loan, USDA loan or FHA loan, then you are eligible for a mortgage waiver for up to 18 months if you apply by June 30, 2021 d. All penalties will be waived and this information will not be included in your credit report. Homeowners do not need to provide any proof that they are in a difficult situation.

When the abstinence period comes to an end, mortgage services cannot force homeowners to pay a lump sum to make up for missed payments, but may look into other options, such as refinancing a loan, increasing future monthly payments to compensate for missed payments. over time or adding missed payments to the end of the loan term.

If you have accumulated some capital in your home, another option is cash-in refinancing. This allows you to refinance your home at a lower interest rate and cash out the capital you have accumulated in your home. You can use these funds to pay necessary expenses or pay off a high interest rate credit card debt. If this option sounds appealing, it is best to visit an online marketplace such as Credible to view refinancing rates.

Help for homeowners in need is available

It is unclear when borrowers will be able to access funds from HAF. But if you are in financial difficulties, mortgage help is available to you. If you are interested in learning more about refinancing, visit Credible talk to a mortgage specialist and get your questions answered.

Have a financial question but don’t know who to contact? Write to a safe money expert at moneyexpert@credible.com and your question can be answered by Credible in our Money Expert column.

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