A majority of residents in the U.S. have faced an economic crisis, unemployment, and income loss due to the 2020 pandemic. Although a few residents took their way to recover from this, many are still falling short of paying for their house rents and mortgages.
With the government offering the $1,400 home stimulus program, homeowners expect a fourth stimulus check following this.
Although it is unlikely that the government would go ahead with a fourth check, the American Rescue Plan has offered $10 billion to the Homeowners Assistance Fund.
Through a forbearance process, the homeowners have the option to apply a pause on their mortgage payments. Although that relief has expired, more options are available today to cover the rising house expenses.
Read along to understand how to qualify for the stimulus program.
Criteria to Avail Stimulus Money
Under the American Rescue Plan Act, specific benchmarks make a homeowner suitable for the stimulus money. Here are the must-follow elements you must know about.
- Income that does not go beyond 150% of the median income.
- Individuals who experienced financial crisis and income loss during the pandemic. Proof of hardship should also be provided, for instance, a job loss.
- Mortgage balance below $548,250 as of 2021.
If you qualify for the above criteria, you become an eligible borrower. The money you receive from the Homeowners Assistance Fund (HAF) is helpful for varied home expenses, such as mortgage payments, utility payments, and insurance.
The HAF was primarily devised for people who were the worst hit and are on the edge of losing their utility services, face foreclosure, delinquency, etc. So, if you fit in this category, the state would prioritize your case for the home stimulus program.
The qualified recipients can get anywhere between $15,000 and $80,000 to cover their expenses.
How to Apply for the Stimulus Program?
The stimulus program and the funds are given at the state level. Hence, the application procedure can differ from one state to the other.
Each state is designated to provide the details of the application process for the housing aid to the residents. Hence, if you are looking to apply for the process, you must know that not every state has started delivering applications for Americans.
Even so, you must start exploring your chances to grab the application before the fund gets exhausted. If you are looking to apply for housing aid instantly, you should reach out to your mortgage loan servicer to get a fairer idea.
The loan provider may even be flexible with the house owners who have a pending application for home aids under a few circumstances.
Additionally, you can even check your state’s housing website to get more application details of your specific area.
The stimulus plan is specifically designed for homeowners facing financial shortcomings. It is vital you check for your eligibility before the state makes any further announcements or changes.
As a homeowner, you can still benefit from the Covid-era relief programs. If you have a government-backed mortgage, you still have time for an initial loan forbearance to halt your payments if you are going through a brief financial difficulty.