Homeowners Can Get Money From the Homeowner Assistance Fund
- The pandemic has left many families dealing with times of financial difficulty, and some have had trouble paying their monthly living expenses.
- The U.S. Treasury has created the Homeowner Assistance Fund, a program dedicated to helping homeowners receive the funding they need to pay for their living expenses.
- The applicants of this program are approved on a first-come, first-serve basis, therefore, it is important to start the application process as soon as possible.
The COVID-19 pandemic caused times of financial hardships for the majority of people. As some were forced to work remotely or were left out of a job, it became increasingly difficult for some to accommodate their living expenses. Thus, to ensure people would not fall behind on their mortgage payments, the United States (U.S.) Department of Treasury implemented the Homeowner Assistance Fund (HAF) program.
Purpose of the Homeowner Assistance Fund
The purpose of this program is to provide financial assistance and assist homeowners with ensuring they do not fall behind on their mortgage payments, which could result in defaults or foreclosure. The U.S. Treasury has allocated nearly $10 billion to this assistance program to ensure many across the country can receive the funding they require to keep their homes.
The range of money an applicant can receive is between $15,000 and $80,000, and each state can put a cap on the max amount an applicant receives. As there is a large sum of money being allocated to millions of people, the U.S. Treasury has implemented certain requirements that the applicants must meet before receiving the money.
Experienced Financial Hardship
Firstly, to qualify for the Homeowner Assistance Fund, the applicant must have experienced financial hardship after January 21, 2020. Mortgage delinquencies are not being made a requirement for receiving funding from the Homeowner Assistance Fund program, however, one key thing to keep in mind is when filling out the application, you must clearly state what type of financial hardship you experienced.
Financial hardship could be loss of income due to being laid off, increasing monthly costs due to having to care for an ill family member, resulting in high medical expenses, etc. Therefore, it is essential to keep a list of the necessary hardships you faced past the date listed above to increase your chances of getting your application accepted.
Applying for a Primary Residence
Secondly, you are ineligible for the Homeowner Assistance Fund if you own multiple properties. This pot of money is only available to those who live in their primary residence. Therefore, if you are applying for this assistance program while living in your primary residence, then you are eligible to receive funding.
Incomes Equal to Less Than/Equal to 150% Median Household Income
Lastly, depending on your place of residence, your income must equal to be below 150% of your area median income or 100% of the U.S. median household income.
Once these three requirements are met, the next step is to begin applying for Homeowner Assistance Fund itself.
Applying for Homeowner Assistance Fund
If you wish to apply for the Homeowner Assistance Fund, click here to begin your application. The linked website displays a map of all the states participating in this program, and the map outlined in the website shows which states are currently accepting applications.
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Hyperlinks are attached at the bottom of the website for each respective state participating in this program, making it convenient and easy to navigate. However, one disclaimer to keep in mind is that these applications are accepted on a first-come, first-serve basis. Therefore, if you wish to maximize your chances of getting accepted for this program, then it is ideal to begin the application process as soon as possible.
Rejected From the Homeowner Assistance Fund? Here’s What You Can Do.
Unfortunately, there is not enough money within the Homeowner Assistance Fund for everyone. Thus, if your application is denied, do not worry, as there are other alternatives. One main alternative is to contact a housing counselor that the Department has approved of Housing and Urban Development.
Receiving housing counseling will help you get an idea of what your options are and what mortgage services are available.
If you wish to contact an approved housing counselor, click here to get started.
The pandemic has caused many to be left in a difficult financial situation, resulting in difficulties trying to make ends meet. However, it is crucial that you take advantage of the resources provided by the government to help yourself and your family get out of this time of financial hardship.
What are some other things to keep in mind when applying for the Homeowner Assistance Fund? Let us know in the comments below.
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