You are probably overwhelmed with COVID-19 news. So, I will keep this short. I want you to know which benefits are available to homeowners through the CARES Act (the massive stimulus package from our government).
How the CARES Act Helps Homeowners
The CARES Act provides a lot of money for small businesses and individuals affected by the COVID-19 crisis. It specifically increases unemployment benefits if you got laid off.
The CARES Act also includes benefits for homeowners. There’s a moratorium on foreclosures on government secured loans (FHA, Fannie Mae, Freddie Mac, VA, USDA). Banks are required to offer forbearance, i.e. delay your loan payments, without impacting your credit.
If you lost your job or suffered a drop-in income it is critical that you contact your mortgage servicer. That being said, do NOT just stop making mortgage payments.
Similar rules apply to student loans. Contact your loan servicer for details.
New Lending Requirements Impact Buyers
Unfortunately, banks got squeezed by these forbearance rules and loan approvals became more difficult.
Numerous lenders informed me that it is no longer possible to get VA or FHA loans with credit scores below 660.
This means many buyers will not be able to obtain financing, and fewer buyers may submit offers on your listings.
I am available for live showings and virtual consultations! Call or text me at (614) 975-9650.
Susanne Novak has been a Realtor since 2007. She is the broker and owner of RE/MAX 24/7 in the Dublin Historic District. Susanne typically helps 50-60 families each year with their real estate needs. She's your trusted advisor when you search for your dream home, and a skilled negotiator when she lists your property to get top dollar when you sell.