Buying a house is one of the most important purchasing decisions someone can make. The property may become your home, as well as one of your most valuable assets. However, the process behind buying a house can be overwhelming and stressful. The COVID-19 pandemic only exacerbated those concerns; hopefully these resources can help you along your journey!
CARES Act for Homeowners
The Coronavirus Aid, Relief, and Economic Security (CARES) Act was established to provide fast and direct economic assistance for American workers, families, small businesses, and industries affected by the COVID-19 pandemic. The CARES act is in place to help if you are having trouble paying your mortgage (if you are having trouble paying, you should contact your lender immediately).
- The CARES act states that your loan servicer can not foreclose on you for 60 days. This provision ends on June 30, 2021. Follow this link for a White House Fact sheet on these provisions
- The CARES act allows borrowers with a federally back mortgage to request forbearance for up to 180 days from their lender.
Forbearance means your lender will suspend your monthly mortgage payment for that period of time. You will still need to make those payments, and you should work with your lender to agree upon the new payment dates & amounts. You must contact your lender to request a forbearance. You will not suffer any fees, penalties, or additional interest from requesting or receiving forbearance.
Homeowners Assistance Fund
The Homeowners Assistance fund was signed to help prevent loan defaults, foreclosures, loss of utilities or energy services, and displaced families that are struggling financially. The fund considers local and national income indicators to determine which homeowners need the financial support.
To speak with a counselor to receive help with the Homeowners Assistance Fund, or any other housing issues, visit the Consumer Financial Protection Bureau (CFPB) website. Counselors are provided at little or no cost to you!
CARES Act for Renters
The CARES act does not only protect homeowners, but renters as well. If you are having trouble paying your rent, you should contact your landlord immediately. Households may be eligible for this relief if they meet the following criteria:
- Household income is less than 80% of Area Median Income (AMI)
- One or more household members that can prove a risk of experiencing homelessness/housing instability
- One or more household members who qualify for unemployment benefits or experienced financial hardships due to the pandemic
To see if your household is eligible, and for more information about rent relief due to the pandemic, visit the CFPB & Department of Housing and Urban Development (HUD) links below:
The pandemic has been challenging for almost everyone, but it is important to remember that there are resources available to help you through difficult times.
If you have questions about obtaining a mortgage, please reach out to the First Bank Consumer Lending Team.