Although the quick rollout of vaccines, stimulus checks and other measures by the Biden administration have helped mitigate the dark cloud that hovered over the nation due to the coronavirus pandemic, the clouds are less dark and the economy is showing green shoots of recovery. Yet, there are lots of homeowners across the nation who is struggling to pay their mortgage loans and risk losing their homes. However, there’s a silver lining in the dark clouds over their homes. President Biden’s $1.9 trillion pandemic relief bill provided for $10 billion of direct financial assistance through state housing agencies.
How to qualify and who will qualify for this aid?
The almost $10 billion set aside by the Biden administration to provide direct financial assistance can help in
- paying mortgages
- paying taxes
- paying utilities
- paying insurance
- paying homeowners association dues
Formally called the Homeowners Assistance Fund, the package is being rolled out to states. The National Council of Housing said that amounts are being disbursed using a formula that considers the number of unemployed residents, late mortgage payments as well as foreclosures.
Americans can receive money if they own a home and have a loan balance that does not exceed the thresholds that are set by Fanny Mae and Freddie Mac. These two government sponsored mortgage giants buy or stand guarantee for most of the home loans in the U.S… In 2021, many parts in the nation have a $548,250 loan limit.
State housing agencies will distribute the funds to those homeowners who have been struggling with their loans. The states must grant at least 60 percent of the funds to those who have incomes that are below the local median or the national median, depending on which median is higher.
The U.S. Treasury Department is releasing the funds. They have to be utilized by the states by September 2025. States had to request for a part of the total amount set aside by April 25. However, there’s no data available about the states which had asked for funds. As of now, Illinois governor J. B. Pritzker has indicated that Illinois will begin to help its residents this week with a $400 million package from the $10 billion set aside from Biden’s $1.9 trillion pandemics relief package.