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An Aggressive New Mortgage Assistance Program Is Part of the American Rescue Plan
The Biden administration is launching the Homeowner’s Assistance Fund as part of the American Rescue Plan. States will receive block grants to provide mortgage assistance, and lenders will be required to offer the aggressive new mortgage modification program to all borrowers. The new program will help homeowners who have USDA, FHA, and VA loans. It can also be applied to non-traditional mortgages such as owner-financed mortgages, land contracts, and reverse mortgages. The modification program may lower some people’s payments by as much as 25%. Lenders will be required to offer the modification program to all eligible loan holders.
30 Year Fixed Mortgage Rate
|Today’s Mortgage Rate||2.809%|
|Change From Yesterday||+0.037|
|Change From One Week Ago||-0.102|
|Change From One Year Ago||-0.27|
15 Year Fixed Mortgage Rate
|Today’s Mortgage Rate||2.152%|
|Change From Yesterday||+0.027|
|Change From One Week Ago||-0.583|
|Change From One Year Ago||-1.368|
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The American Rescue Plan includes a federal mortgage assistance program. The program will be available to all States, native tribes, and US territories. It will cover government issued loans as well as non-traditional loans and reverse mortgages. Lenders must offer the new modification program to all borrowers.
Under the new Homeowner’s Assistance Fund, states will be provided with federal funds in order to provide monetary assistance to struggling home-owners This is in addition to the federal mortgage modification program that is also part of the federal effort to reduce foreclosures.
The new mortgage assistance programs are available to people who hold non-traditional mortgages. These can include land contracts, owner-financed mortgages, and reverse mortgages. The people who have owner financed mortgages are usually at an economic disadvantage. They have bad credit, high interest rates, and it is easy to evict them for a handful of missed payments.