The US government has been providing various stimulus packages to distressed Americans and many of them are set to get paychecks before Christmas. Such steps helped many to overcome the crisis that engulfed them following the Covid-19 and the associated economic fallout.
Now many struggling homeowners in America are keen to know whether they would get some help from the government in the form of stimulus measures. Many of them want a mortgage stimulus program. Though there is no mortgage stimulus program from Congress so far, federal funds have been used to provide relief to homeowners.
One such program is the Homeowner Assistance Fund, which was part of President Joe Biden’s American Rescue Act.
States, District of Columbia, and other US territories receive about $10 billion from this fund.
The fund can be used for providing help in mortgage payments, insurance, utility payments, etc.
The fund, which is distributed via states, can be offered to people who have suffered financial hardship following the pandemic.
In order to be qualified for this fund, income must be 150% or less of the area median income or 100% of the median income for the US, whichever is bigger.
Besides, the homeowner’s mortgage balance must be less than $548,250.
Qualifying households in Connecticut can claim as much as $20,000, while those in Illinois can apply $30,000 per household.
The states are working with the Treasury to finalize and implement their HAF programs very soon, said the National Council of State Housing Agencies.
People can check the NCSHA website to get more details including when the fund would be distributed by states.
Homeowners can also look to get relief through another way – a federally-backed refinance program.
According to a news report, homeowners are missing out on savings worth more than $300 per month by not refinancing their mortgage.