Can you use the money from the stimulus check to pay your rent or mortgage?

Can you use the money from the stimulus check to pay your rent or mortgage?

The American Rescue Plan Act, signed on March 11 by Joe Biden, included among the financial aid to struggling Americans, a third stimulus check of up to $ 1,400. Can you use this money to pay your rent or mortgage?

The $ 1,400 stimulus checks have been the most generous ever offered during the COVID-19 pandemic, so the eligibility requirements were modified to prevent those deemed “high-income” from receiving the aid.

The main objective of direct payments is to stimulate the economy that has been hit by the pandemic and most of the beneficiaries will use this money to pay their essential expenses. That's why a lot of people will put the $ 1,400 in rent and mortgage payments.

A Bankrate.com survey indicates that 67% of respondents planned "to use their stimulus checks to improve their financial situation in the short term." The survey indicates that while about 13% of those surveyed plan to spend the money on non-essential purchases, 32% plan to pay their outstanding debts.

The category to which more people are going to allocate the money is, without a doubt, the payment of monthly bills. 45% of stimulus check recipients plan to spend the money on rent, mortgage, cell phone, or utilities.

Despite the recovery that the country is achieving, there are still about 9 million jobs that disappeared during the pandemic and have not been recovered and 18 million people continue to receive some type of unemployment benefit.

The American Rescue Plan added an additional $ 25 billion to the Emergency Rental Assistance Program that was first introduced by the administration of former President Donald Trump.

The program provides help to anyone who is having difficulty paying rent due, current rent, and even utility bills and help is available if your income has been affected by the pandemic and your safety is threatened by lack of housing.

If you want more information about the requirements to apply for the program, you should consult the Department of the Treasury’s Emergency Rental Assistance Program page.

This week the  Mortgage Bankers Association announced that the weekly number of mortgage applications rose to 8.6% compared to last week due to low-interest rates in the market, which indicates consumers perceive that the country's economy will improve.

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