Paycheck Protection Program (PPP)
This is a program offered by the Small Business Administration (SBA). PPP is a loan designed to provide a direct incentive for small businesses to keep their workers on the payroll. Under the terms of the program:
- SBA will forgive loans if all employees are kept on the payroll for eight weeks and the money is used for payroll, rent, mortgage interest, or utilities.
- You can apply through any existing SBA 7(a) lender or through any federally insured depository institution, federally insured credit union, and Farm Credit System institution that is participating.
- Lenders may begin processing loan applications as soon as April 3, 2020. The Paycheck Protection Program will be available through June 30, 2020.
If you own a small business, you may be able to take advantage of this opportunity to protect your employees and keep them on their payroll.
Learn more about the Paycheck Protection Program here.
Disaster Response Network for Homeowners & Renters
This network is run by Fannie Mae as well and offers free help with broader financial challenges caused by COVID-19. Its HUD-approved housing counselors can:
- Create a personalized action plan
- Offer financial coaching and budgeting.
- Support your ongoing success for up to 18 months.
If you are a homeowner, you can access the Loan Lookup Tool offered by Fannie Mae.
If you are a renter, contact your property manager or building owner to see if you have access to Fannie Mae’s Disaster Response Network. This option is available only for tenants living in apartments or other multifamily rental properties financed by Fannie Mae.
Read more about these programs at the COVID-19 assistance page created by Fannie Mae.
HOPWA program of the HUD
HOPWA program offered by HUD (Housing and Urban Development) is organizing a webinar on April 13th, 2020 at 1:00 PM EDT to provide more information on COVID-19 response. You can register for the HOPWA webinar at HUD’s website.
If you are purchasing a home and are concerned about appraisal, this should likely benefit you. On March 23, 2020, Fannie Mae and Freddie Mac issued letters talking about the impact of COVID-19 on Appraisals. Under the guidance, lenders will be allowed to use desktop appraisal and exterior only appraisals for purchase transactions through May 17, 2020. Fannie Mae has instructed appraisers to accommodate the revised scope of work and document a statement of assumptions and limiting conditions.
For more information, you can read Fannie Mae Appraisal Alternatives and Freddie Mac Appraisal alternatives
Keep calm and stay hopeful
These are difficult times we live in. But like every other calamity that mankind has faced, we’ll come out of this fine. Hold your hands together and stay optimistic. We are all too resilient to let this bog us down for too long.
At Stem Lending, our goal is to help you with your mortgage. If there’s guidance you are looking for regarding your home loan, please do reach out. We’ll help you to the best we can.