Useful Information & Links
– Why does Manchin oppose the Build Back Better bill?
– Final monthly CTC payment of 2021 sent out on Wednesday 15 December
–New parents could see another stimulus check reflected in their tax refund in 2022
– What’s the deadline to get your stimulus check plus-up payment in 2021?
Wall Street rises at open as Omicron worries ease
Wall Street’s main indexes opened higher today after early data suggested the Omicron variant of the coronavirus was less severe than feared.
The Dow Jones Industrial Average rose 28.5 points, or 0.08%, at the open to 35782.42.
The S& P 500 rose 7.4 points, or 0.16%, at the open to 4703.96, while the Nasdaq Composite rose 22.9 points, or 0.15%, to 15544.788 at the opening bell.
Food insecurity back on the rise ahead of CTC expiry
New data released by the United States Census Bureau shows that food insecurity is back on the rise in the US, as American families prepare for the financial blow of the enhanced Child Tax Credits expiry at the end of the month.
According to statistics compiled between 1 and 13 December, a five-month-high 9.7% of American households said they sometimes or frequently did not have enough food.
After the first of so far six monthly payments of up to $300 per child went out in July, food insecurity in the US fell to 7.8%.
To Start Verify Your Mortgage Type
The GSEs, Fannie Mae, and F.M. deal with conventional loans, FHA, VA loans. The Department of Agriculture offers USDA loans. You can see if your mortgage is owned by Freddie Mac or Fannie Mae. The federal government has encouraged all lenders to support mortgage assistance due to hardship brought about by the coronavirus pandemic. If you have a mortgage problem, contact your mortgage lender to check out the details of how much money is going to be taken from your mortgage.
Is There Really A $3700 Mortgage Stimulus Program
Those $1,200 pandemic stimulus checks have ended, and are unlikely to return.
So what are all these ads for a new homeowners stimulus, that could provide more than $3,700 to pay your mortgage?
The ads are all over social media right now, many saying a new 2021 mortgage relief program is giving back $3,708 in savings to homeowners.
The headline on another says a new stimulus program is giving relief.
It even includes a picture of a TV anchorwoman reading this as breaking news.
But what TV station does she work for? It looks like CNN, but theres no logo on the screen.
The Better Business Bureau and AARP are warning about all these ads, saying there is no federal mortgage stimulus program.
States have some individual programs to help homeowners in distress, but that is not this.
And from the doesnt that stink file, what happens when you click to apply.
We tried to sign up, and got a series of screens asking for our address, homes value, and how much we owe on it.
In the end, it turned out to be a pitch for a refi program, which might save you $3,000, or not.
Its not a scam, but its 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.
That way you dont waste your money.
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Coronavirus Stimulus Checks For Homeowners
This benefit for homeowners, called Homeowners Assistance Fund , is part of Bidens American Rescue Plan. The $1.9 trillion plan, which was signed into law in March, sets aside $10 billion for the Homeowners Assistance Fund.
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The fund ensures at least $50 million to each state, as well as for Puerto Rico and the District of Columbia. Further, it ensures $498 million for the Department of Hawaiian Home Lands and designated housing entities.
This fund aims to support homeowners hit hard by the pandemic and are unable to make their mortgage payments and are facing delinquencies and foreclosures. Eligible homeowners can use the money to cover mortgage payments, cost of utilities, homeowners insurance and other related essentials.
The Treasury Department is responsible for the distribution of the Homeowners Assistance Fund. It has set up many eligibility requirements to ensure that the money reaches those who need it the most.
What Is The Homeowner Assistance Fund
The homeowner assistance fund is a federal program to help households who have fallen behind on their mortgages and other housing-related expenses due to Covid-19.
The Haf program will be run at the state level.
With the guidance of the Treasury Department, $9.9billion will be split among all the states and territories that applied and are approved to run a program.
A minimum of $50million will be given to each state.
It can be used for mortgage relief, utility bills, and other housing costs.
Some states are using the funds they have received to set up pilot mortgage assistance programs so they can start helping homeowners sooner.
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How To Get An Fha Cash
Do your research before you begin to consider an FHA cash-out refinance to make sure that you qualify and have everything required to apply.
Applying for an FHA cash-out refinance is similar to buying a home. There are similar considerations when it comes to credit, debt, and income, as well as an importance in budgeting and saving for the appraisal and closing costs in advance. This should be your first step in considering how much time you will need to prepare for an FHA cash-out refinance.
Take the time to bring up your credit score and save money for closing costs, if necessary. If you have a missed or late mortgage payment in the previous 12 months, you must wait until you have made 12 consecutive months of on-time payments to apply. Although FHA cash-out refinance loans are ideal for those with low credit, it is still a good idea to have a credit score of at least 600 before applying. Request copies of your credit reports if you suspect that your credit is not high enough.
Once youve decided that you would qualify for an FHA cash-out refinance, contact an expert before approaching your lender. Be sure to have your paperwork ready, including your current mortgage, documents outlining your other loans, as well as your income statements. Check with your lender to determine if you would require any additional documentation.
How To Qualify For And Claim The $1000
A Back to Work CT Program must be completed electronically before you can see any stimulus payment. Paper applications are not accepted.
An applicant may be contacted in order to verify eight consecutive weeks of working have happened.
There are other, more specific qualifications required in order to be eligible.
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Now News About A Fourth Stimulus Check
Back in May, a group of Democratic lawmakers in the House Ways and Means Committee requested through a letter to Biden the administration of two more stimulus checks, but the White House has given no update since.
“The president is certainly open to a range of ideas,” said White House press secretary Jen Psaki earlier in June.
“He’s happy to hear from a range of ideas on what would be most effective and what’s most important to the economy moving forward.”
Keeping Families In Their Homes
Even as the American economy continues its recovery from the devastating impact of the pandemic, millions of Americans face deep rental debt and fear evictions and the loss of basic housing security. COVID-19 has exacerbated an affordable housing crisis that predated the pandemic and that has exacerbated deep disparities that threaten the strength of an economic recovery that must work for everyone.
To meet this need, the Emergency Rental Assistance program makes funding available to assist households that are unable to pay rent or utilities. Two separate programs have been established: ERA1 provides up to $25 billion under the Consolidated Appropriations Act, 2021, which was enacted on December 27, 2020, and ERA2 provides up to $21.55 billion under the American Rescue Plan Act of 2021, which was enacted on March 11, 2021. The funds are provided directly to states, U.S. territories, local governments, and Indian tribes. Grantees use the funds to provide assistance to eligible households through existing or newly created rental assistance programs.
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How Can Homeowners Receive Their Stimulus Money
Each state is expected to receive a minimum 50m dollars and will provide homeowners with details on how they should apply for the stimulus check.
States will break down the eligibility limitations for the homeowners depending on the area. In the event you are willing to apply for more financial relief from the federal government, you can check out your state’s housing agency website for more details.
Coronavirus Mortgage Relief Programs
The type of mortgage relief you may be eligible for depends on your loan type and which bank or agency owns your mortgage.
Here are the relief programs currently available for the four major loan programs: conventional, FHA, VA, and USDA.
Mortgage relief for conventional loans
Fannie Mae and Freddie Mac were the first to unveil relief programs for those affected by the coronavirus.
Many homeowners dont realize their mortgages are owned by Fannie or Freddie. You may not have noticed that one of them bought your loan after you closed. But you can easily find out using the lookup tool that each of them provides:
Be sure to use both tools. Either agency could own your mortgage as they own the majority of U.S. home loans.
Providing you agree with your lender on an assistance package, you could be in line for:
- Mortgage forbearance for up to 15 months
- Penalties and late fees waived on issues covered by your forbearance agreement
- No reporting to credit bureaus about late or missing loan payments
- Loan modifications that could allow you the same or lower monthly payments when things return to normal
Under the CARES Act, homeowners do not have to prove theyre in financial distress in order to get mortgage relief. That means no extensive documentation.
Homeowners simply have to claim theyre going through financial hardship by sending in a hardship letter saying theyve been affected by COVID19.
Mortgage relief for governmentbacked loans
- FHA loans
- VA loans
- USDA loans
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Allocations For States And Territories
The statute requires the Department of the Treasury to make allocations for each state, the District of Columbia, and Puerto Rico based on homeowner need, determined by reference to the average number of unemployed individuals and the number of mortgagors with mortgage payments that are more than 30 days past due or mortgages in foreclosure. The statute establishes a minimum allocation of $50 million for each state, the District of Columbia, and Puerto Rico.
For Guam, American Samoa, the U.S. Virgin Islands, and the Commonwealth of the Northern Mariana Islands, there is a $30 million territorial set-aside, to be allocated based on each territorys share of the combined population of all four of these territories.
How To Request Funding
Eligible states, territories, freely associated states, and Tribal governments will be able to apply for their allocation of the Capital Projects Fund through the Treasury Submission Portal.
|Type||Deadline to Submit Grant Plan|
|States, Territories & Freely Associated States|
Additional information about how to apply for Capital Projects Fund grant funding can be found in Section II of the Capital Projects Fund Guidance:
All eligible applicants must carefully read the Capital Projects Fund Guidance regarding the process for requesting funding. Tribal Governments may also visit the Capital Projects Fund Tribal Governments page for additional details.
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Fha Va And Usda Loans: Take Advantage Of Low Interest Rates For Govvernment
If you have a government-backed loan an FHA, VA or USDA loan you wont be able to take advantage of the HIRO or FMERR programs.
Still, theres another great refinance option available, to enable homeowners to reduce their mortgage interest rate even if their homes market value is low compared to their mortgage balance.
If your mortgage is backed by the Federal Housing Administration, the Department of Veterans Affairs or the United States Department of Agriculture, you have refinancing options, even if your mortgage is underwater.
FHA, VA and USDA loan programs all offer Streamline Refinance options, which are quick and affordable refinance loans with reduced eligibility requirements. These Streamline Refinance programs require little paperwork and take less time and money than a conventional refinance.
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What Is The Homeowners Assistance Fund
The Homeowners Assistance Fund offers one such benefit. In short, this $10 billion fund stems from the $1.9 trillion stimulus law from earlier this year.
The fund gives state governments power to decide how they want to help homeowners with various expenses. Including those who live in areas with “persistent poverty.”
Or if those homeowners belong to a group that’s historically faced discrimination.
The idea here is that there’s a pot of money available to help homeowners struggling with things like mortgage payments as well as taxes, association dues, and other payments associated with homeownership. Even the payment of things like utility bills and insurance costs. “The American Rescue Plan provides nearly $10 billion for states, territories, and Tribes to provide relief for our country’s most vulnerable homeowners,” a fact sheet from the Treasury Department explains.
This isn’t something that’s coming directly to you from the federal government, though.
Individual states submit plans for how they want to parcel out funds for the program. Something that New York State became the first to get final approval for this month. In a statement, Gov. Kathy Hochul said her state is distributing almost $539 million to homeowners “at the greatest risk of foreclosure or displacement.”
Homeowners in Connecticut, meanwhile, could get up to $20,000, and in Illinois up to $30,000.
Recipients have until to make changes reflected on that final check, coming.
Is There Congress Mortgage Stimulus Or Covid
Although theres no current mortgage stimulus from Congress, there is federal help available for homeowners.
When President Joe Biden signed the American Rescue Plan into law in March 2021, it famously included stimulus checks to nearly all households. It also provided special financial assistance for homeowners who were or are struggling financially as a result of the COVID-19 pandemic.
The Homeowner Assistance Fund is intended to help with your monthly mortgage payments and with property taxes, homeowners insurance, homeowners association fees and utility bills.
Although these are federal funds, theyve been sent out to states to administer. For help, you apply to your states housing finance agency. Locate your states agency and contact information with this lookup tool.
There are some eligibility requirements for these funds. To qualify, your mortgage balance must be $548,250 or less, and most of the funds are designated for borrowers with average or below-average incomes.
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How To Refinance Second Mortgages Heres What You Need To Know
Many homeowners refinance their mortgage at least once during the lifespan of their loan. If you already have a second mortgage, you may not have considered the possibility of refinancing your second mortgage. Refinancing second mortgages may prove to be beneficial for homeowners who are looking for lower interest rates and monthly payments.
Refinancing a second mortgage is generally similar to refinancing the first mortgage, but there may be different reasons to refinance again.
If you want to learn about refinancing your second mortgage, then read on. Youll need to take some steps in order to refinance.
How To Request Mortgage Relief
Your mortgage servicer is likely not the same company that set up your loan. Not all mortgages offer the same relief, and there may be state or local assistance you can tap. Dont rely solely on the knowledge of the agent to whom you speak. Do some research of your own online. Youll find some links to help you find programs that may be tailored to suit your mortgage needs. Do not rely on the information from your loan servicer, its best to directly contact your mortgage company to get the best results.
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What We Found:
The ad claims that homeowners with a mortgage can apply and get up to $3,708 each year deducted from their payments as soon as October. It then asks them to give their personal information in a survey to see if they qualify.
“It seems to be the latest thing now that the other stimulus programs have wound down,” Bartholomy said. “Scammers are just trying to find that other angle.”
Bartholomy said it’s not free money. It’s a scam.
“It’s very appealing to some people, especially if they haven’t received any government stimulus,” he said. “Unfortunately, we are talking to a lot of people who have taken that bait.”
According to Bartholomy, there are a few ways to tell right away that this is not real. At the bottom of the ad, there is “fine print” stating:
“The information provided on this website is for information purposes only. It is not intended to be, nor does it constitute any kind of financial advice.”
At the top of the page, it also says advertorial meaning it’s not a real news article but staged like one.
“There is no stimulus out there today that been proposed or that’s been enacted that is attached to a mortgage,” David Hoffman said.
Hoffman explained that some companies will try this tactic for a bait and switch.
“The fine print is like, ‘this is not real, this is a way to capture the information you might be able to get a loan, which will give you $3,000 but you just rob it from Peter to pay Paul,'” Hoffman said.