As we look toward 2021 (finally!), there are a few new military housing policies that are nice to be aware of. First, you might ask yourself what your BAH will be next year. For those of you that are curious, it’s worth a look here for the official BAH rates in 2021. With interest rates at record lows for the time being, it might also be worth looking at purchasing a home with your VA loan. Additionally, it might be worth considering an IRRRL as refinancing offers incredibly low rates at the moment. With the potential economic recovery coming in 2021, there’s a chance that these rates might not last. Talk to a licensed lender today to discuss any of these options.
Additionally, under a proposed bill, Veterans who are behind on their mortgage payments may see some relief in the near future. Under a proposed policy, many veterans who are unable to pay their mortgage may soon be able to apply for a program that grants them a low interest loan to cover their payments.
The CAREs act enabled many homeowners to delay their mortgage payments or apply for forbearance. As the year winds down, eviction protection and delay allowances are slated to end on December 31. The VA plans to enable Veterans who are still in need to continue to delay their payments by bridging the gap with a loan. Those borrowers will have up to 10 years to repay the loan with up to five years before the payments are required. Interest on the loans is projected to be 1% per annum.
Those using the program will have to work with their lender to figure out a mutually agreeable payment plan (forbearance) for future payments, and maintain that plan if they want to avoid eviction or foreclosure.
To qualify for the proposed program the following must apply (click this link to see the full details):
- The borrower must have been current on their loan payment (and it must be a VA-guaranteed loan) as of March 1, 2020 (or less than 30 days past due).
- The borrower must have received CARES Act forbearance and have missed at least one scheduled monthly payment since using the program.
- The veteran must have enough income to resume making monthly mortgage payments to their lender (without experiencing other subsistence issues) and have a debt to income ratio within acceptable levels.
- The veteran must occupy the home for which they make the claim.
If that applies to you, it might be worth staying up to date on the news! $
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