Texas Assistance Fund providing future mortgage payments

Eligible Texas homeowners can apply for help from a state-run fund that will provide future mortgage payments to people in financial difficulty.

The program run by the Texas Department of Housing and Community Affairs will also help homeowners with their past due and future utility payments. Only primary residents of the state are eligible.

“We recognize that many variables can affect a person’s ability to meet home-related expenses,” Bobby Wilkinson, executive director of TDHCA, said in a press release. “By adding assistance with utility bills and future mortgage payments, we can give them time to seek housing counseling or legal aid, work with their loan officer to change the terms of their loan, or even finding ways to increase their income.”

Each household can receive up to $65,000 in total assistance from the Texas Homeowner Assistance Program, provided in the form of a grant, as long as they experienced qualified financial hardship due to the pandemic after January 21, 2020, such as a loss income or increased expenses.

The owner must be behind on one or more payments for his mortgage; property taxes; Home Insurance; homeowners/condo association fees; and/or utility bills.

Household income must be 100% or less of the area median income or 100% of the US median income, whichever is greater.

In addition, households with no income or a debt-to-equity ratio greater than 55% who are unable to continue making their monthly mortgage payments are eligible to have their loans reinstated plus up to three months of future payments, up to to a maximum of $65,000.

Texas had the the third highest number of seizures begins for the quarter ended Sept. 30, at 6,217 filings, behind only California and Florida, Attom Data Solutions found.

The Texas program is part of the federal program Homeowners Assistance Fund, administered by the Treasury Department. In April, the Federal Housing Finance Agency ordered a foreclosure break for Fund participants who have a Fannie Mae or Freddie Mac loan.

The Federal Housing Administration in May “strongly encouraged” its repairers to suspend foreclosures for those receiving assistance from the program.

Since his launch in marchthe Texas Homeowner Assistance Fund has disbursed more than $175 million and helped more than 18,000 unique households.

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