Do you qualify for the $10 billion in Covid-19 mortgage assistance?
Here’s what you should know.
More than a million homeowners who are behind on their mortgage payments could benefit from a lesser-known sort of Covid-19 assistance included in the new stimulus package. In addition to the $1,400 stimulus checks, around $10 billion in mortgage relief is available to help homeowners keep up with their monthly payments.
Here’s how you can qualify:
Mortgage Assistance: How Does It Work?
- Additionally, the Homeowners Assistance Fund can help with your mortgage payment, as well as other regular costs such as monthly homeowners association dues that you may have to pay.
- The United States Treasury Department is transferring funds to states in order for them to distribute direct financial assistance through state housing agencies.
- The amount of mortgage assistance is determined by each state’s number of late mortgage payments, foreclosures, and unemployment statistics, among other factors.
- This Covid-19 mortgage relief must be spent by states by September 30, 2025.
- To learn more about Covid-19 mortgage relief in your state, contact your state housing agency.
How to Qualify for Mortgage Relief
- You must be the owner of your home.
- You have to have a mortgage.
- In 2021, your mortgage balance must be less than $548,250.
- Funds will be made available to mortgage borrowers who are having difficulty repaying their mortgage.
- Mortgage borrowers must receive at least 60% of mortgage aid if their income is less than the national median income or the respective local median income, whichever is higher.
This mortgage relief comes on top of a federal moratorium on mortgage foreclosures caused by the Covid-19 pandemic. This mortgage foreclosure moratorium is currently in effect until the end of next month, though the Biden administration may extend it. Otherwise, millions more borrowers could be forced to file for foreclosure, which could cost them up to $12,500 in attorney’s fees as well as the loss of their houses.
For federally backed mortgage loans, homeowners can apply for forbearance and defer their mortgage payments for up to 18 months. To locate your mortgage loan servicer, go to the Mortgage Electronic Registration Systems (MERS) website. Also inquire with your loan servicer if Fannie Mae or Freddie Mac, government-sponsored firms that fund the bulk of federal mortgage loans, are involved in your loan. Forbearance on 2.1 million mortgages is at least 90 days overdue.
You could also consider refinancing your mortgage to save money and pay it off faster. This mortgage calculator will show you how much money you can save when purchasing a home or refinancing your mortgage.