Homeowners Assistance Fund: How to Apply for These Checks
Even though the Covid 19 is almost gone, people who are having trouble paying their mortgages can still obtain help through the Homeowners Assistance Fund programs. If you’ve lost your work or had your income reduced temporarily, you have a few options. To assist the most vulnerable homeowners, the American Rescue Plan Act allocates up to $9.961 billion to states, the District of Columbia, US territories, Tribes or Tribal entities, and the Department of Hawaiian Home Lands.
States such as Florida, New York, Texas, California, Illinois, Virginia, Michigan, and others offer varying amounts per household, but the applicant’s eligibility requirements are nearly identical. The checks from the Homeowner Assistance Fund are grants. This means that in the vast majority of cases, recipients are not required to refund the funds.
Funds may be used to prevent homeowner mortgage delinquencies, defaults, foreclosures, the loss of utilities or home energy services, and the displacement of homeowners who are having financial difficulties after January 21, 2020. According to their official site, these activities include:
- Mortgage payment assistance;
- Financial assistance to allow a homeowner to reinstate a mortgage or to pay other housing-related costs related to a period of forbearance, delinquency, or default;
- Principal reduction;
- Facilitating interest rate reductions;
- Utilities, including electric, gas, and water;
- Internet service, including broadband internet access service;
- Homeowner’s insurance, flood insurance, and mortgage insurance;
- Homeowner’s association fees, condominium association fees, or common charges;
- Compensation of funds expended by a state, local government, or designated entity beginning January 21, 2020, and ending on the date these funds are first distributed for the purpose of providing housing or utility payment assistance to individuals or otherwise preventing foreclosure or post-foreclosure eviction of a homeowner or tenant, preventing mortgage delinquency, or loss of housing or utilities due to the COVID-19 pandemic;
- Any other aid, as decided by the Secretary, to enhance housing stability for homeowners, such as averting eviction, mortgage delinquency or default, foreclosure, or loss of utility or home energy service.
Research the programs available in your state, their eligibility requirements, and the required paperwork. Remember that most of these initiatives will close after funding is depleted, so send your applications as soon as possible.