Thank you so much to Josh Penland, Vice President and Senior Loan Officer from the Penland Team at Legacy Mutual Mortgage, for letting us share his recent newsletter, below. His newsletter includes wonderful information about the CARES Act. You can contact Josh with any questions here: https://legacymutual.com/officers/josh-penland/
Here is information on the new CARES Act that was just passed. Lots of info here but I have put it into bullet points that are easy to read. You or someone you know could benefit from this information (lost jobs, business income decline, etc). I hope you are all staying safe during this very unique time in our lives.
I am here if you need anything even if it is not mortgage related or if you want to talk! 512 689-6278 is my personal cell phone.
TAX DEADLINE & PAYMENT EXTENSION to July 15, 2020
IRS Notice 2020-18 announces special federal income tax return filing and payment relief.
Not covered – estate and gift tax returns, payroll or excise tax filings, 2020 second quarter estimated tax payments (due June 15th), and state related deadlines. Here is a link to the complete notice!
CASH PAYMENTS TO PERSONS EARNING <$75,000/year
Most individuals earning less than $75,000 can expect a one-time cash payment of $1,200. Married couples would each receive a check and families would get $500 per child. That means a family of four earning less than $150,000 can expect $3,400.
STUDENT LOAN – no penalty for late payments for 6 months
Applies to federally backed student loans only (not private). Until 9/30, any late fees will not apply and in some instances payments may be on hold. More Info Here
LOSS OF JOB FROM AN EMPLOYER – Boosted Unemployment Benefits
States will still continue to pay unemployment to people who qualify. This bill adds $600 per week from the federal government on top of whatever base amount a worker receives from the state. That boosted payment will last for four months.
BUSINESS OWNERS /SOLE PROPRIETORS eligible for SBA LOANS
The bill provides $10 billion for grants of up to $10,000 to provide emergency funds for small businesses who qualify for the Economic Injury Disaster Loan to cover immediate operating costs. There is $350 billion allocated for the Small Business Administration to provide loans of up to $10 million per business. Any portion of that loan used to maintain payroll, keep workers on the books, or pay for rent, mortgage and existing debt could be forgiven, provided workers stay employed through the end of June. Info to Apply for an ‘Economic Injury Diasaster Loan’ (SBA loan)
FREELANCERS/INDEPENDENT CONTRACTORS
Typically, self-employed people, freelancers and contractors can’t apply for unemployment. This bill creates a new, temporary Pandemic Unemployment Assistance program that provides unemployment coverage through the end of the year to freelancers and independent contractors and also provides an additional $600 per week for 4 months in addition to regular state benefits. Good Article Here about this benefit
HOMEOWNERS – Up to 6 months delay/forbearance on mortgage payments
Borrowers of federally-backed mortgage loans can request a loan forbearance on their payments (without penalties, fees, or interest) for at least 180 days. DO NOT CALL YOUR LOAN SERVICER — I am hearing the hold times are over 2-3 hours long. Go online and they all will have some link where you can apply for the relief. Multi-family borrowers may request a similar forbearance for up to 30 days.
In addition, foreclosures on similar mortgage loans are prohibited for at least 60 days and evictions from properties related to several federal programs are also prohibited for a 120 day period. FAQ from the Federal Housing Finance Agency
****I do caution you before taking this option. There is not clarity on what happens after the forbearance period. It does not state if all missed payments have to be paid at once or if the interest is added to the loan to be paid off when you pay off the loan or if the term is extended 3-6 months. My hope is they extend the term and if you have an escrow account, the tax/insurance that is short is taken care of next year when they complete your escrow analysis in January.
REFINANCE OF HOME for CASH OUT/Lowering Payments
Whether its lowering your monthly payments, or accessing the equity in your home to assist with home repairs, paying off high credit card debt, kids college, or even purchasing an investment property. On a primary residence, you can take cash out up to 80% of the value of your home. You can also take cash out of an investment property up to 70% of the value. I have a great contact for HELOC’s (home equity line of credit) as well.