Stimulus Check Update: Homeowners Could Be Entitled To More Money

The American Rescue Plan Act was signed into law by President Joe Biden in March and is best known for the $1,400 stimulus checks that it provided.

Unfortunately, many Americans have long since spent this money and are now left hoping for a fourth stimulus check that will likely never come as Congress and the Biden administration have moved on to other priorities.

But for homeowners, there’s actually a possibility of more stimulus money coming even if lawmakers do not pass any further COVID-19 relief legislation. That’s because the American Rescue Plan also provided $10 billion to a Homeowners Assistance Fund.

Unlike the $1,400 stimulus checks, though, you will need to take action to get your part of this money if you’re eligible for it. As a result, homeowners need to understand how the HAF works and what criteria they must meet in order to be eligible for additional stimulus money from it.

Here’s what you need to know.

Stimulus Money Is Available To Certain Homeowners

Under the terms of the American Rescue Plan Act, homeowners can become eligible to receive stimulus money from the Homeowners Assistance Fund provided certain criteria are met. They must:

  • Have an income that doesn’t exceed 150% of the area median income
  • Have experienced financial hardship after Jan. 21, 2020 and be able to provide proof of the hardship. Examples include healthcare expenditures or a job loss
  • Have a mortgage balance below $548,250 as of 2021

For eligible borrowers, the money can be used for many different home-related expenses including:

  • Mortgage payments
  • Homeowners insurance
  • Utility payments
  • Other specified purposes

The goal of the HAF fund in the American Rescue Plan Act was to help prevent homeowners from becoming delinquent on their loans; losing their utility services; going into default on their mortgage; or facing foreclosure. The law also makes clear that homeowners who have “experienced the greatest hardships” should be prioritized.

To learn more about how homeowners can claim their stimulus money, click here.