The Stimulus Package – What it May Mean for You!
Congress recently passed the $2 Trillion stimulus CARES Act to help with the effects of COVID-19. This act is intended to help anyone facing financial hardships due to loss of income from COVID-19.
DEFERMENT FOR MORTGAGE PAYMENTS
In this package, the Federal Housing Finance Agency (FHFA) has placed a temporary 60 day moratorium on all foreclosures and evictions (starting March 18th). FHFA also enacted a mortgage forbearance plan that would require a mortgage servicer to allow certain eligible borrowers affected by COVID-19 related issues, like loss of employment or illness, to stop or reduce their mortgage payment for up to 180 days.
Should you fall into this category, please call your current mortgage servicer. If you are making payments to us, please call your loan officer for more information.
- You must call your current mortgage servicer before stopping payments.
- Lenders will work with you. Each situation is handled on a case by case basis.
- Mortgage Servicers are considering forbearance, loan extensions, a reduction in interest
rates, and/or other flexibilities for repayment.
- Not making payments may affect your credit score.
- You will still be required to make payments on the months missed and interest will still accrue during this time.
- The borrower must be able to demonstrate financial harm from COVID-19.
One-time stimulus check
- The amount is based on your adjusted gross income from your most recent filing [2018 or 2019]. If you have an authorized direct deposit account listed on your tax return, then you will receive a direct deposit into that account. If you did not have a direct deposit account, then you will receive a check via the mail. The stimulus check is being given to those with a social security number or adoption taxpayer identification number. Those who are immigrants who filed taxes with an ITIN number do not qualify.
Increased unemployment benefits
- This is for people who qualify and lost their jobs because of COVID-19. You could receive and $600 per week for up to 4 months in addition to your state unemployment benefits.
Expanded Unemployment Benefits
- Unemployment Benefits are available for individuals who do not traditionally receive unemployment This would include the self-employed, freelancers, contractors, or gig workers.
Withdraw from your 401(k), without penalty
- You will need to meet the guidelines for being affected by the pandemic.
Protections Against Foreclosure and Eviction Deferment on Student Loans
- You can defer for six months with no penalty, interest, or harm to credit.
Funding for small businesses
- Billions of dollars were allocated for small businesses and hospitals in distress from the pandemic.