As the pandemic slows and the deadlines on government housing aid approach, it leaves many thinking, what happens when the aid goes away? As the first aid deadline passes, here is what you need to know about the future of housing.
Since the pandemic began, a foreclosure moratorium has been in effect to ensure that there are no foreclosures on any federally backed mortgages around the country. This memorandum has helped to ensure that those with jobs effected by the pandemic have had time for the worst of the crisis to pass and the ability to get back up on their feet financially. This moratorium recently came to an end, on July 31st, which may leave some wondering if it is the right time to sell their current home and purchase a more affordable option with the help of a new loan.
In addition to the foreclosure moratorium, there has also been a mortgage forbearance program in place which has allowed some borrowers to pause their mortgage payments. This program is planned to end coming September 30th, which may leave some questioning how they will begin affording their mortgage payments once more. In cases like this, refinancing may be a good option to obtain a lower payment or shorten the term of their loan.
Also expired on July 31st is the Eviction Moratorium. This crucial moratorium has kept millions of US renters from being evicted during the worst of the Covid-19 pandemic and in the months that have followed. With this moratorium coming to an end however, millions still now face potential eviction again as their back log of rent is now due.
As each of these aids come to an end, renters and owners around the country now face a new reality. Fortunately, many owners will be okay. They are entering a red-hot housing market which will allow those who cannot afford to keep up on payments to sell their homes for a respectably price and therefore potentially afford something new. On the flipside however, many renters may have to face the reality that renting may not be the way to go any more. With landlords looking to rebuild profits, rents may rise in the months to come, making buying a house a more favorable option.
For renters looking to buy, or homeowners looking to refinance or even purchase a new home, our Loan Originators have got you covered. Contact Homestead today, so that we can walk you through every step of the process.
Homestead Funding offers exceptional customer service and a convenient mortgage process. Whatever your financing needs, our goal is to exceed your expectations.