Currently, there's no Congress mortgage stimulus program or GSE rescue package. But homeowners have plenty of alternatives. Many lenders are offering forbearance for as long as Covid is considered a National Emergency. And over a million homeowners are still eligible to refinance despite rising rates.
Mortgage Refinance Relief FAQ
Although there's no current mortgage stimulus from Congress, there is federal help available for homeowners. In March 2021, the American Rescue Plan designated $10 billion to help struggling homeowners.
Californians at or below 100 percent of their county's Area Median Income, who own a single-family home, condo or manufactured home (permanently affixed) and faced a pandemic-related financial hardship after January 21, 2020, may be eligible.
The federal program that has been introduced to provide help for homeowners who are struggling to pay their mortgages is called the homeowner assistance fund (HAF). There is now a HAF program available in the majority of states, with pilot programs also on offer.
The middle-class mortgage stimulus package
HIRO loan program replaced HARP, which was first enacted by Congress in 2009. HIRO helped millions of homeowners refinance their mortgages without the need for equity. A refinance can put serious money back into the pockets of middle-class Americans.
To help borrowers struggling with mortgage payments due to unemployment or illness, Congress enacted mortgage stimulus programs under the CARES Act and the American Rescue Plan. Many of these mortgage relief programs have been extended into 2022 to help those who are still struggling financially.
The Homeowner Assistance Fund (HAF) is a federal program to help homeowners impacted by COVID-19 catch up on mortgage and utility bills and pay other housing costs. Learn More.
Congress approved legislation for continued COVID relief that includes a second round of stimulus checks. The payment is worth up to $600 for each adult and each qualifying child dependent in the household. For example, a family of four would receive up to $2,400.
You will need to file a 2020 tax return to get the first and second stimulus checks and a 2021 tax return to get the third stimulus check. Visit GetYourRefund.org to claim the first and second stimulus checks by October 1, 2022.
Forbearance lets you skip some or all of your monthly mortgage payments for as much as a year. But forbearance should be a last resort, something to avoid if at all possible. While it can be a lifeline in the short-term, forbearance will undoubtedly lead to credit issues for many down the road.
If you're struggling to meet your mortgage repayments, the government could be able to help. You could be able to sign up for the Mortgage Rescue scheme, Support for Mortgage Interest, or other government benefits that might boost your income.
Homeowners with federally backed loans have the right to ask for and receive a forbearance period for up to 180 days—which means you can pause or reduce your mortgage payments for up to six months. Additionally, you can request an extension of forbearance for up to 180 additional days, for a total of 360 days.
In a reverse mortgage, the lender makes payments to the homeowner rather than the homeowner making payments to the lender. Because the homeowner receives payments from the lender, the homeowner's equity in the property decreases over time as the loan balance gets larger.
Mortgage rates could fall 1% to get back in line with the drop in Treasury yields. A decline of that magnitude would mean 12% lower monthly payments.
If you want to find out whether your loan is federally back, you can use the Freddie Mac or Fannie Mae lookup tools. You can also call your loan servicer to ask (they are required by law to tell you). If you have questions about whether you can get a federally-backed loan, talk to Integrity First Lending today.
If you want to take out a mortgage on a paid-off home, you can do so with a cash-out refinance. This option allows you to refinance the same way you would if you had a mortgage. When refinancing a paid-off home, you'll decide how much you want to borrow, up to the loan limit your lender allows.
The vast majority of the third stimulus payments were automatically delivered to taxpayers' bank accounts or via a check in the mail last spring. The payments were authorized by the American Rescue Plan in March 2021 and were meant to help people struggling financially because of the Covid-19 pandemic.
The IRS started sending the third Economic Impact Payments to eligible individuals in March 2021 and continued sending payments throughout the year as tax returns were processed. The IRS has issued all third Economic Impact Payments and related plus-up payments.
President Biden signed the American Rescue Plan Act on March 11, 2021. Provisions in the bill authorized a third round of stimulus checks worth $1,400 for each eligible person ($2,800 for couples), plus an additional $1,400 for each dependent.
The second stimulus checks for the COVID-19 relief package are set to total $600 per person, with phase outs based on adjusted gross income limits that are similar to the first relief package. Families also get additional $600 payments for each qualifying dependent under age 17.
Who Qualifies for the Third Stimulus Payments? Generally, if you're a U.S. citizen (or U.S. resident alien) and not a dependent of another taxpayer, you qualify for the full third stimulus payment. In addition, your adjusted gross income (AGI) can't exceed: $150,000 for married filing jointly.
The IRS will automatically send a third stimulus payment to people who filed a 2019 or 2020 federal income tax return. People who receive Social Security, Supplemental Security Income, Railroad Retirement benefits, or veterans benefits will receive a third payment automatically, too.
To receive the economic benefit, homeowners must provide proof of loss in income, joblessness, or other forms of financial struggles. Hence unlike other forms of stimulus money, homeowners have to apply for HAF benefit and prove their eligibility through the application.
It's not a scam, but it's not a $3,000 stimulus program, and that stinks. The Better Business Bureau says “there is no Congress-approved relief program for mortgage payments for Americans.” Finally, be careful of any offer for government help that takes you to a website that does not end in “dot gov.”
To find the amount of Economic Impact Payments issued to you, see your Online Account. The IRS has issued all first, second and third Economic Impact Payments. You can no longer use the Get My Payment application to check your payment status.