Real estate agents deliver home key to client
Source: Getty

Homeowner Mortgage Stimulus Relief Program Could Give You $15,000–$80,000

Ruchi Gupta - Author
By

Jun. 7 2022, Published 11:12 a.m. ET

With the impact of the COVID-19 pandemic waning with the help of vaccines, federal stimulus checks have stopped for most people even though the need for financial assistance continues. Fortunately for struggling homeowners, they may still access a mortgage stimulus relief program.

Article continues below advertisement

It can be difficult to keep up with mortgage payments if you’ve suffered a loss of income or reduced earnings. Property tax, association fees, and utility expenses can become serious problems if you’re facing financial hardship.

capture
Source: Unsplash
Article continues below advertisement

Is there a stimulus relief program for homeowners in 2022?

President Joe Biden’s American Rescue Plan included Homeowner Assistance Fund (HAF) with nearly $10 billion. The fund is still available to eligible homeowners in 2022. The fund provides relief to homeowners who have fall into hard economic times as a result of the COVID-19 pandemic. The HAF is meant to prevent mortgage defaults, foreclosures, and the loss of utility services to families.

Article continues below advertisement

Who's eligible for the homeowner stimulus relief program?

You must have experienced a financial hardship attributed to the pandemic to apply for the HAF program. Also, the program only accepts households with an income of up to $79,900. Depending on where you live, properties such as single-family homes, duplexes, manufactured homes, and condominiums may be eligible for the relief.

Article continues below advertisement

Here's how to apply for HAF relief.

You can apply for homeowner relief through your state. When applying to the HAF program, you’ll be required to confirm the nature of your hardship. The hardship could be a job loss, reduced income, or increased costs due to healthcare expenses. There's a map that shows areas where the program has been activated.

You can apply for the HAF program even if your home has already entered the foreclosure process. The foreclosure could be paused while your application for the relief is processing. If you’re approved for the assistance, then the financial aid could help bring your mortgage current and stop the foreclosure. Homeowners who may be at risk of foreclosure are encouraged to talk with their mortgage servicers about their application for the relief program.

Article continues below advertisement

Apart from covering overdue mortgage payments, you could also use the money to pay property tax, homeowner association fees, home repair expenses, or utility bills. The money would go directly to the mortgage company or the entity you owe the bills.

How much is the homeowner mortgage stimulus?

The HAF program can provide relief in the range of $15,000–$80,000. However, states can set the maximum assistance to offer residents to try to help more households. The program allocated a minimum of $50 million to states, but the demand can easily exceed the available funds. Some states have already stopped accepting applications.

Article continues below advertisement

Do you have to pay back the homeowner mortgage stimulus?

The HAF program generally gives distressed homeowners free money. However, you may be required to pay back the money under certain circumstances. An event that could trigger a call to refund the money is when you decide to sell the property before a specified date.

Finally, while stimulus checks to help with groceries may have stopped coming, there's at least a relief program to prevent your home from being foreclosed.

Advertisement

Latest Personal Finance News and Updates

    © Copyright 2022 Market Realist. Market Realist is a registered trademark. All Rights Reserved. People may receive compensation for some links to products and services on this website. Offers may be subject to change without notice.