Homeowners in DC and Delaware Can Get Assistance with Their Mortgages
Several government programs were launched recently that offer assistance to qualifying homeowners impacted by the Covid-19 crisis. These programs are funded by the Department of Treasury’s American Rescue Plan of 2021.
DC Homeowner Assistance Fund
Last month, Mayor Muriel Bowser and the DC Department of Housing and Community Development (DHCD) announced a new homeownership initiative with $50 million from the American Rescue plan of 2021. DC residents who own homes affected by COVID-19 are eligible to apply for grants to help pay their past-due mortgage payments, real estate taxes, utilities, homeowner association dues, and other housing costs. They are eligible to receive up to $120,000.00 through the DC Homeowner Assistance Fund.
“With this program, we’re adding another resource to our homeownership toolkit,” said Mayor Bowser. “Homeownership is a critical tool for helping residents stay and build wealth in DC. That’s why we’re increasing our down payment assistance program, why we launched the Black Homeownership Strike Force, why we have the Safe at Home program, and, now, why we are launching this Homeowner Assistance Fund. All of these programs together is how we give more Washingtonians a fair shot.”
Delaware Mortgage Relief Program
The Delaware Mortgage Relief Program, administered by Delaware’s State Housing Authority also provides financial aid to eligible homeowners. Applicants should have a household income at or below 150% of the Area Median Income and have experienced financial hardship as a result of the pandemic (including job loss, reduction of working hours, and medical bills). They must occupy and own their home and it must be located in the state of Delaware. There are two types of assistance available:
Fresh Start Mortgage Grant Program: a one-time payment to settle past-due mortgage arrears and/or to help with a principal reduction, interest rate cut, mortgage modification, or future mortgage payments to amounts the homeowner can afford.
Emergency Displacement Diversion Grant: can be to cover tax delinquency, chattel loan, or land lease delinquency, water, and sewer utilities, insurance, and HOA fees.