Federal homeowners assistance off to slow start but could soon provide relief

Federal homeowners assistance off to slow start but could soon provide relief

Federal homeowners assistance off to slow start but could soon provide relief
The federally funded Homeowners Assistance Fund (HAF) has been struggling to gain momentum but that may soon change. The $10 billion fund to help homeowners struggling to make mortgage payments during the pandemic was launched earlier in the year without much guidance on how the money will make it’s way to borrowers. But last week, the U.S. Department of the Treasury announced it was opening it an online portal for states to submit plans for their roll out of the project.

The HAF was part of the $1.9 trillion American Rescue Plan passed by Congress. The funds can be used to pay delinquent property taxes, back owed mortgage payments and some home repairs.

Some of the rules already announced regarding the flow of money stipulate that at least 60 percent of the funds must be given to lower-income homeowners and that recipients must provide proof they have experienced a financial hardship due to the pandemic.

Meanwhile, conforming no-point 30-year fixed mortgage rates are averaging 2.75 percent and 15-year rates are near 2.00 percent.

Do you have a question for Real Estate & Mortgage Analyst Mehran Aram? Submit your queries about a home purchase, refinance, or reverse mortgage via Aramco.biz, social media (#AramcoReport), or over the phone at (866) 381-8888 and your questions may be featured in an upcoming article.