April 17, 2021

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Mortgage News

Help with past due rent, utility bills and mortgage payments available for eligible Iowans

IFA Director Debi Durham speaks at Governor Reynolds’ press conference on March 24, 2021.

Starting Monday, Iowans who are behind their rent, utility bills, or mortgage payments due to COVID-19 will be able to get assistance to pay what they owe. The online application process for both will take place on March 29th at 2 p.m. Iowa Rent and Utility Assistance Program and the COVID-19 Iowa Foreclosure Prevention Program will start.

“I am told exactly two o’clock,” said Debi Durham, director of the Iowa Finance Authority (IFA), while Governor Kim Reynolds said press conference On Wednesday. “I’m not sure why two, but it’s two o’clock.”

The rental and utility program can “provide up to 12 months of assistance with rental and utility bills to eligible tenants affected by COVID-19,” said Durham.

“The program is funded by a $ 195 million allocation to IFA under the Treasury-administered Federal Emergency Rental Assistance Program,” she said. “Rental assistance through the program can include overdue payments and up to three months of future assistance, which are requested at the same time. The benefit support can only include overdue payments. “

When a person’s application is approved, payments are made directly to the landlord or utility. Durham advised tenants to let their landlords know if they would like to apply for assistance as the landlord will have to fill out part of the application.

Assistance is only available for paying overdue amounts billed after March 13, 2020.

According to the IFA site for the programTo qualify for assistance, you must meet the following criteria.

• Tenant households with an income not exceeding 80% of the area median income.

• One or more people in the household are entitled to unemployment benefit.
The OP saw a decrease in household income, generated significant costs, or experienced other financial difficulties directly or indirectly related to the coronavirus outbreak.

• The household can demonstrate the risk of homelessness or housing instability, including an overdue supply or rent or eviction notice.

IFA uses counties as areas for calculating income levels. The agency published a counselor to 80 percent of the average income of a district, corresponding to the number of people in a household.

For Johnson County:

1 person: $ 54,950

2 people: $ 62,800

3 people: $ 70,650

4 people: $ 78,500

5 people: $ 84,800

6 people: $ 91,100

7 people: $ 97,350

8 people: $ 103,650

For Linn County:

1 person: $ 47,750

2 people: $ 54,500

3 people: $ 61,350

4 people: $ 68,150

5 people: $ 73,650

6 people: $ 79,100

7 people: $ 84,550

8 people: $ 90,000

IFA has one Online list the types of documents, including personal ID and proof of loss of income, required to complete the application.

The same income thresholds apply to the foreclosure prevention program. It was set up as a stopgap until a federal homeowner aid program approved under the latest American rescue plan law can come into effect.

According to the IFA siteEligible applicants can “receive mortgage assistance for up to four months (this can be up to two months in arrears) starting April 1, 2020 (maximum $ 3,600).”

In addition to meeting the income threshold, the applicant must be a current homeowner who “[a]t Risk of foreclosure due to documented loss of income in connection with COVID-19 on or after March 13, 2020. “

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Applicants are required to document their loss of income during the pandemic and their most recent mortgage statement.

The rental and utility program is expected to remain open through September 30, according to Durham. The foreclosure prevention program will “be open until funds are depleted or, frankly, until the new Federal Homes Ownership Assistance Program is available,” she said.

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