While many households are on the road to financial recovery during the pandemic’s darkest days, the need for assistance persists.
The Homeowner Assistance Fund, administered by the US Department of the Treasury, currently has a roughly $10 billion fund, and homeowners can still request aid through the program.
While most pandemic-era forbearance options for distressed homeowners have expired, a fund set aside by Congress remains available to anyone in need of assistance.
The Homeowner Assistance Fund, administered by the United States Department of the Treasury, is a nearly $10 billion federal program established to assist families who have fallen behind on their mortgages and other housing-related expenses due to the public health crisis’s financial fallout.
While many homeowners are making significant strides toward recovery from the pandemic’s deadliest days, the need for assistance persists, according to Stockton Williams, the National Council of State Housing Agencies executive director.
“Data suggest that certain homeowners, particularly those with low incomes and homeowners of color, continue to face financial and economic hardship,” Williams added.
Experts say that with other government actions receiving greater attention, such as enhanced unemployment benefits and rental help, many homeowners may be unaware of potential assistance.
What you need to know about the software is as follows.
States run the program, and eligibility conditions vary. Still, in general, applicants must have encountered a hardship linked to Covid-19 and have a household income of less than 150 percent of the area’s median income, or $79,990, whichever is higher.
Additionally, you may seek relief solely for your main house.
Williams noted that most state programs do not require delinquency as a prerequisite for eligibility.
“In fact, in many circumstances, borrowers do not need to have any outstanding mortgage debt to qualify for help or assistance with other housing costs, such as utilities or property taxes,” he explained.
How can I apply?
The National Council of State Housing Agencies maintains a chart that details how to apply in each state. Several states have not yet begun to open their programs.
At the beginning of March, 24 states, Puerto Rico, and Guam had already done so, and the Treasury Department had authorized nearly all schemes.
“By June, we anticipate that practically all programs will be available,” Williams added.
What expenditures is the assistance intended to cover?
According to the Consumer Financial Protection Bureau, qualified costs may include mortgage payments, property taxes, homeowners’ insurance, association dues, utilities, and home repairs.
How much assistance am I eligible for?
According to the National Council of State Housing Agencies, states choose the maximum amount of assistance available to homeowners, although the threshold often runs between $15,000 and $80,000.
Will there be sufficient supplies for everyone?
Regrettably, probably not. New York has already closed its application process.
According to one study, the Homeowners Assistance Fund’s total value of about $10 billion covers just about a third of the increase in past-due mortgage payments caused by the epidemic.
What if I am unable to obtain the funds?
To begin, if you’re awaiting a response from the Homeowner Assistance Fund, experts recommend contacting your mortgage servicer and informing them of your situation, especially if you’re facing foreclosure.
All distressed homeowners are urged to seek assistance from a housing counselor certified by the United States Department of Housing and Urban Development.