Check Your Eligibility for the Texas Homeowner Assistance Program
In light of the significant economic distress caused by the COVID-19 pandemic, the Texas Homeowner Assistance Fund (TXHAF) is offering financial aid to homeowners who have fallen behind on their mortgage, property tax, homeowner’s association fees, property insurance, or utility bills. However, to benefit from TXHAF, there are certain prerequisites that must be met.
One key requirement is that the homeowner’s income should not exceed 100% of the Area Median Income (AMI) or the median income of the United States, with the greater value being applicable. Another fundamental stipulation is that the applicant should own and occupy the home as their primary residence. Moreover, the mortgage loan must be under the name of an individual, and not a business or any other form of legal entity such as an LLC or LP.
Once approved, the TXHAF program offers two key forms of assistance. Firstly, for those who can continue to pay their monthly mortgage bills post receiving assistance, the program will provide the necessary funds to “Reinstate” the mortgage, meaning that TXHAF will pay the total overdue amount.
However, if you qualify for the program but foresee difficulties in continuing with your monthly mortgage payments even after receiving the assistance, the program will not only provide funding to “Reinstate” your mortgage but will also offer up to three months of additional monthly payment aid to such qualified households.
If you are unable to continue paying your monthly mortgage dues, it’s recommended to consult with a housing counselor and/or your loan service provider to discuss viable alternatives.
For homeowners on “Forbearance” – a temporary arrangement where your mortgage provider allows a pause or reduction in your mortgage payments – the TXHAF assistance can be an invaluable lifeline. Homeowners in this situation are strongly advised to reach out to their loan servicers to explore the best strategies for exiting forbearance. Remember, those leaving forbearance are eligible for TXHAF assistance.
Importantly, please note that duplicate payments for the same expense incurred during the same period are not permitted under the TXHAF program. Additionally, if the property in question is mortgaged, the original mortgage loan amount must comply with the Maximum conforming loan limit criteria determined annually under section 302(b)(2) of the Federal National Mortgage Association Charter Act and section 305(a)(2) of the Federal Home Loan Mortgage Corporation Act.
In conclusion, if you are a Texas homeowner who has suffered financially due to the pandemic and meet the eligibility criteria outlined above, the TXHAF program can offer much-needed support. To understand more about the program and evaluate your qualifications for aid, reach out to a housing counselor or visit the TXHAF website.