With housing prices still on the rise and interest rates following, it’s becoming more challenging to own a home in Texas which has been known for its multiple affordable housing options. The migration of workers out of metro areas into the suburbs along with damages from the COVID-19 pandemic have created the current situation we’re seeing.
How Texas Is Working To Avoid a Housing Problem
Answering the request for additional assistance, the Texas Department of Housing and Community Affairs, or TDHCA, created the new Texas Homeowner Assistance Fund, or TXHAF. Under the new program, Texan homeowners could qualify for assistance with missed mortgage payments and other home-related expenses brought on by COVID-19.
The TXHAF is primarily used by homeowners who are at risk of defaulting on their mortgage or facing foreclosure due to financial troubles caused by the pandemic. The program retroactively covers homeowners back to January 21, 2020.
Eligible households could apply for up to $40,000 in aid for past due mortgage payments to avoid foreclosure and displacement of residents. An additional $25,000 can be used for unpaid property taxes, insurance payments and missed HOA fees if part of a homeowner association.
Understanding Eligibility for TXHAF
The TDHCA has created an online portal to gather extra information and apply directly from their website here. The TXHAF hotline for homeowners in need of additional assistance in applying is 1-833-651-3874 with partnerships being made with financial institutions to allow homeowners the option to apply through their lender.
Creating these additional partnerships may help speed up the approval and disbursement process as the payments are sent directly to the entity owed past due payments. This could be a mortgage company, local tax office or an HOA.
How to Qualify for the TXHAF
Homeowners in Texas looking to apply for aid through the TXHAF will need to meet a set of requirements including:
- Being at least one payment past due on a mortgage loan, HOA fee or property insurance
- Having a total household income below the local median income
- Owning and occupying the property within Texas
- Experiencing a COVID-19 related financial hardship
Texans have already received over $5 million in mortgage assistance with $840 million being budgeted by the TDHCA to be administered through the TXHAF.
Homeowners looking to apply will need to be prepared with both personal and property documentation. Photo ID such as a driver’s license or state identification card is used to verify the identity of the homeowner with payment information being needed for disbursement.
Lastly, you’ll be asked to show proof of income to verify it falls at or below the Average Median Income, or AMI. Having these documents available will help expedite processing and get you caught up on your mortgage payments as soon as possible.
Questions? Contact Your Local Mortgage Experts
The Potempa Team is your go-to group for mortgage lending assistance and information. With experience throughout the Texas housing market, our seasoned agents are here to help you find the perfect solution for financing your new home or refinancing an existing loan. Reach outtoday to get started.