Are you one of the many individuals who faced a financial crisis during the pandemic and are looking for ways to get relief? You can opt for the CARES ACT, an economic bill approved by President Donald Trump in 2020. This act was introduced to focus on redistribution of financial gains, mostly towards low-income households. Moreover, the CARES ACT also provides many benefits to people belonging to middle-class families.
Who Benefits from the CARES ACT?
Allocated to help families during the financial crisis, the CARES ACT grants up to $1200 per adult and $500 per child for households with an income less than $90,000, and $198,000 for couples. Similarly, the act directs lenders holding single-family mortgages to suspend the borrower payments for a maximum of one year if the borrower has faced financial difficulties during the COVID crisis. People who have federally-backed mortgages were also given the payment deferment for up to a maximum of 90 days.
Getting Mortgage Relief through the CARES ACT
Are you facing difficulty in making on-time mortgage payments due to the unforeseen Covid-19 financial crisis? Through, the CARES ACT forbearance might be a suitable option for you.
What is Forbearance?
A mortgage provider is responsible for taking care of your mortgage statements and managing your loan status. Forbearance is when the mortgage provider provides you with relief on your loan by either pausing your payments for a while or reducing them to a price you can currently afford. Keep in mind that forbearance doesn’t let you get rid of the cost entirely. You’ll need to make it up at some point. It simply slows down the process when you are facing a financial crisis.
It’s important to understand that if you can make your payments regularly, it is better that you don’t take a forbearance because it will ultimately extend the length of your loan.
Where Does COVID Mortgage Relief Apply?
The COVID mortgage relief applies to all loans backed by the government and government-sponsored enterprises. This includes loans:
- Insured by the FHA
- Promised under Section 184 of 184A of Housing
- Guaranteed by the US Department of Veterans Affair
- Made by the US Department of Agriculture
- Insured under Section 255 of the National Housing Act
- Secured by the Federal Housing Administration
If you are not sure if your loan is federally-backed, you can check your eligibility criteria for the mortgage relief by connecting with a trusted financial advisor. You can also check online using a loan lookup tool.
Applying for Mortgage Relief through CARES ACT
With a federally-backed mortgage, you will be allowed to delay your payments for 18 months. You can apply for forbearance if your housing falls into one of the categories mentioned above or you are the owner of a multi-family rental unit whose loan is backed by the government. If you report late, you also won’t be charged a late fee, thanks to the CARES ACT 2020. You can visit the official website for more information or contact your service provider for all the latest updates.
Contact a Reliable Financial Advisor to Discuss Your Needs
Contact a qualified Lancaster refinance company to discuss your options if you want more information on mortgage relief through the CARES ACT.