The economic slowdown has led to the loss of jobs, and many people in the US are unable to make payments towards their home loans. According to a recent report, Texas stands at 4th position in the number of home foreclosures. The report mentions 42,522 foreclosures in 12 months.
The US government announced a home stimulus program to help people facing home foreclosures. The following are some essential things to know about home stimulus checks for financial distress.
What Is the Homeowner’s Assistance Fund?
In March, the Federal Government passed the $1.9 trillion American Rescue plan. This plan includes a $10 billion amount for the home stimulus program. The Federal government provides money to all the States and US territories to stave off foreclosures, mortgage delinquencies, and other homeowner’s issues. The State is required to spend the allocated funds by Sept 30, 2025.
What Are the Qualification Requirements?
To get the Home Stimulus Check, you must have a mortgage balance of less than $548,250 as of 2021 or suffered financial hardship like job loss after Jan 21, 2020. The day marks an unprecedented shutdown of the economy. The home stimulus check can also be used to pay overdue homeowner’s association fees, property taxes, Internet fees, and other expenses.
Eligible homeowners need to attest that they faced financial hardships like job loss, increased costs due to healthcare, reduction in income, or the need to care for a family member. Households with more than one earning member need to provide an attestation of household income together with supporting documentation like wage statements, W-2s, and paystubs.
How Much Money Can You Get Through This Assistance Program?
Under this assistance program, you can get $271 per month or $3252 per year. The right HAF amount will be determined by comparing your current income with the State’s median income, delinquent mortgage amount, and other factors.
60% of the money a person gets through the homeowner’s assistance fund should be used for qualified expenses. This condition applies to homeowners whose income is less than 100% of the area median income or less than 100% median income of the US.
The homeowner assistance funds that are made available to the states must be prioritized. The socially disadvantaged individuals should get first preference in the disbursement of the funds, and the remaining funds can then be disbursed to eligible homeowners.
How Much Will Texas Get Under Homeowner Assistance Fund?
The federal government has announced a minimum $50 million allocation for each State. The US Treasury will consider different factors while making the allocations, like the homeowner’s needs which are determined by reference to
- The average number of unemployed people
- Number of mortgagors with mortgage payments more than 30 days past due
- Number of mortgagors facing foreclosures
According to recent records, the unemployment rate in Texas is around 6.5% as of June 2021. The report mentions Texas has approximately 0.96 million unemployed people.
According to the Dallas mortgage delinquency report, Webb County in Texas has the highest mortgage delinquency rate at 4.22%. Most counties in Texas have a mortgage delinquency rate above 2% but below 3%.