- In the midst of the pandemic, aid from the federal government continues to reach citizens to make the road more bearable
- Now, Biden will offer mortgage assistance for up to $ 548,250 for individuals
- How much will they invest? Under the law, it will be $ 10 billion in assistance
In the midst of the pandemic, aid from the federal government continues to reach citizens to make the road more bearable. On this occasion, Biden will offer mortgage assistance for up to $ 548,250 dollars for the people.
Under the American Rescue Plan, the government will allocate $ 10 billion in direct payments to people who help them with mortgage payments, taxes, utilities and insurance.
Biden to offer mortgage assistance for $ 548,250
In the midst of the difficult economic situation that has affected the pockets of citizens during the pandemic, many have been particularly concerned about not having enough income to allow them to pay the expenses of a mortgage.
Those who cannot meet their mortgage payments run the risk of being evicted from their homes and it is precisely here that the Biden government intervenes and reaches out to them.
Federal help for rent payments
Faced with this situation, the government will allocate a millionaire budget that will be distributed among the states, so that these in turn support homeowners who have problems paying their mortgage payments and other related costs, reported The opinion.
Then, How will the funds be distributed? It will be done throughout the national territory through state governments. How much will they invest? Under the law, it will be $ 10 billion in assistance.
Who will distribute these grants?
Unlike other aid such as the third check, this will not be distributed by the Internal Revenue Service (IRS). In this case, the Homeowner Assistance Fund will be responsible for launching the program.
How much will they deliver to each state? That will depend on several factors such as the number of unemployed residents, late mortgage payments, and foreclosures.
Who can apply?
To apply for this aid, interested persons must meet some requirements. In principle, they must have a home. They also have to have a loan balance that does not exceed the threshold established by Fannie Mae and Freddie Mac (a pair of mortgage firms that have an agreement with the government and that guarantee most of the mortgage loans in the country).
How much is the limit? Due to the pandemic, the limit for loans in this 2021 will be $ 548,250 dollars in the case of mortgages backed by the government, although there are also options for those who have applied for a mortgage independently.
Mortgages not backed by the government
The government has determined that similar assistance may be granted to those with non-government-backed mortgages. If a person is having trouble paying their mortgage payments, they should be presented with the possibilities of easing their burden whether or not they have a federal loan.
More advantages. With this program, no penalties or interest will be charged if the person or family has late payments. This plan also establishes that whoever has a government mortgage loan and has tenants, will not be able to evict them or charge them penalties if they are late with the payment of rent in a period of 120 days.
How to apply for help?
What should I do if I want to apply for help? Then you will have to contact the servicer of your mortgage loan, be it government or private, before the deadline, which is June 30, 2021. This way you can ask the servicer to postpone or reduce your mortgage payments for a period of six months, at least. The aid could be extended for six more, or the trustee could present you with some other proposal to help pay off your debt.
This consideration does not mean that you will not pay your debt. You must “pay back late payments, which can be paid over time or when you refinance or sell your home. Before the forbearance ends, your trustee will contact you about how to refund late payments, ”explained the Consumer Financial Protection Bureau.
Los Angeles launches $ 235.5 million rental assistance program
In addition to the federal mortgage assistance program, several cities have chosen to introduce a program that helps tenants pay their rent. Los Angeles Mayor Eric Garcetti and members of the City Council announced this Tuesday a new program of more than 235 million dollars of assistance for tenants who have not paid their rent after being affected by the coronavirus pandemic, among which are they count thousands of Latinos.
City of Los Angeles tenants and resident homeowners affected by the health emergency will be able to apply for help from a $ 235.5 million fund beginning March 30, city officials said at a news conference on Tuesday, the Efe agency.
$ 235.5 million rental assistance program in Los Angeles
On March 2, the City Council voted unanimously to approve the use of funds from last December’s round of relief from the federal and state governments to help some 64,000 families with rental assistance, according to estimates by the Los Angeles City Council.
Garcetti stressed that “the good thing about this (program) is that, unlike last year, it is not just about paying one or two months of rent in advance” and added that “it is about erasing that debt that is stressing today families wondering whether or not they will be able to pay their rent, not just this month’s rent. “
Thousands of Latinos Can Benefit from Rental Assistance in Los Angeles
For Los Angeles tenants to qualify, they must have experienced financial difficulties related to the pandemic and have a family income equal to or less than 50% of the area’s median income. A family of four, for example, would be eligible with an income of $ 56,300 a year or less.
“This assistance will not only support families who are behind on their rent; it will also help family owners who are also struggling during this pandemic to pay their mortgage, ”explained the president of the City Council, Nury Martínez.
Tenants could disappear their rental debt from April 1, 2020 until March 31, 2021
If the landlord agrees to forgive 20% of the debt, the favored tenants will see all the rental debt they accumulated from April 1, 2020 to March 31, 2021 disappear. This second round of financing to pay rent Overdue is more than double the amount from the last round.
On the other hand, before the approval of the 1.9 trillion dollar coronavirus stimulus proposed by President Joe Biden, several states, without waiting for the federal government to act, approved their own financial rescue packages, including California. Biden to offer mortgage assistance for $ 548,250.