Homeowner’s Assistance Fund – Mortgage Stimulus
As part of a federal rescue package designed to help homeowners, the government set aside billions of dollars in aid funding for American homeowners nationwide. Many families are overwhelmed by living costs and rising fuel and food prices. According to the recent news, this help will be released to states by the U.S. Treasury Department and must be used by Sept. 30, 2025. The deadline for states to request to participate in the $10 billion federal aid package was April 2021.
Some states that did request money are moving forward with plans to pay it out to homeowners including offering options to help individual situations, like repaying any amount not paid during forbearance, avoiding foreclosure, and maintaining your refinance eligibility.
Today, FHA offers a deferred-payment loan of an amount up to 3% of the purchase price or appraised property value to assist with down payment and/or closing costs, with a cap of $15,000 for first time home buyers.
Meanwhile, homeowners with federally backed loans have been able to pause their payments for as long as 18 months through the government’s forbearance program. And, Biden has extended a federal ban on foreclosures through June.
In another effort to help, the Consumer Financial Protection Bureau last month proposed a set of rule changes aimed at preventing avoidable foreclosures when the federal protections expire.
As part of this effort to maintain home affordability, the interest rates associated with home loans varying from fixed rate options, ARM loans and home equity lines of credit have never been more competitive. Today is certainly an excellent time to check for quotes to refinance your mortgage.
