Nevada Homeowner Assistance Fund Provides Mortgage Aid to Hundreds
In Reno, Nevada, a new federal program named the Homeowner Assistance Fund has been a financial savior for hundreds of homeowners, preventing them from falling into the dreaded abyss of foreclosure.
Commencing in May 2022, this program was developed as a response to the COVID pandemic. From the federal fund, Nevada was allocated $121 million, designed to assist homeowners in maintaining their homes despite the loss of jobs or significant reduction in work hours due to the pandemic’s effects.
Latasha Newell, a mother of five, was among the beneficiaries of this program. Like many others, the pandemic hit her hard, causing her to be out of work for six months as businesses across Nevada were temporarily shuttered. Even after she returned to work, her hours and consequently, her income, were significantly reduced. The impact was substantial, making it difficult for her to catch up with her financial obligations.
Homeownership had always been a cherished dream for Newell. The prospect of providing her children with a stable home, one that they would always return to, was threatened when she fell behind on her mortgage payments. Thankfully, her mortgage company suggested the Nevada Homeowner Assistance Fund and her application was successful.
The program provided Newell with financial assistance amounting to $28,000, covering her mortgage payments for a full year. This generous aid alleviated her financial burden, enabling her to meet other critical expenses such as utilities. The relief was palpable – she could continue to live in her home.
There are two specific funds available for Nevadan homeowners, each aimed at different circumstances:
- The Unemployment Mortgage Assistance Program: This is designed for eligible homeowners who lost their jobs due to the pandemic. This program can provide up to $3,000 per month for a maximum of 12 months, amounting to a total of $54,000. Notably, this funding covers not just the mortgage, but also taxes, insurance, and homeowner association fees.
- The Mortgage Reinstatement Assistance Program: This is meant for homeowners who defaulted on their mortgages due to the financial strain brought about by the pandemic. Eligible homeowners can receive up to $50,000 per household, though income limits do apply.
Nevada has so far spent only $12,000 of the $121 million it received. A total of 538 homeowners in Southern Nevada and 69 in Northern Nevada have availed of assistance. The primary areas of aid distribution in Northern Nevada include Lemmon Valley, Spanish Springs, Fernley, Fallon, and Elko.
It’s crucial to note that the funds allocated must be utilized by September 2025. Any unspent funds will be returned to the federal government. As emphasized by Verise Campbell, the CEO and COO of the Nevada Affordable House Assistance Corporation, the importance of this program goes beyond just the economy. It is for the betterment of all Nevadans and every effort will be made to ensure the funds are fully utilized.