Are you struggling to pay your mortgage? Mortgage relief is available from the federal government. Millions of Americans have received mortgage assistance to help them pay bills or lessen the financial burden of their payments. The widespread unemployment and underemployment caused by the COVID-19 pandemic has hindered – and continues to impact – many homeowners’ ability to pay their mortgages.
In response, Congress passed a mortgage relief program in 2021 as part of the CARES Act that provided funding to states so that certain qualified homeowners could pause their mortgage payments during periods of financial turmoil. Learn more about the CARES Act, mortgage relief and more assistance options in the sections below.
Federal mortgage assistance is available to certain U.S. homeowners struggling to make their mortgage payments. The COVID-19 pandemic placed a large financial burden on many individuals, especially those who experienced a loss or reduction of income.
To assist homeowners, Congress passed a mortgage relief program as part of the Coronavirus Aid, Relief, and Economic Security (CARES) act. This homeowner relief program, known as the Homeowner Assistance Fund (HAF), gave federal money to states in an effort to help struggling homeowners.
With this money, states can provide assistance to eligible homeowners in a number of ways:
- Mortgage payment assistance
- Financial assistance to help pay costs associated with delinquency, default, or forbearance
- Reducing interest rates
- Reducing the principal
- Assistance with utilities
- Internet service
- Homeowner’s insurance, flood insurance, and mortgage insurance
- Homeowner’s association (HOA) or condo fees
The relief program is open to homeowners with federally insured loans with a principal balance that is at or below the conforming loan limits. You can find current loan limits on the Fannie Mae website here: https://singlefamily.fanniemae.com/originating-underwriting/loan-limits
To receive mortgage help through this program, you must meet income guidelines and be experiencing a financial hardship directly related to the COVID-19 pandemic. An example of a qualifying situation would be if your place of work had to close due to the pandemic.
The HAF is not open in all states; many states have closed the program due to running out of federal funds. As of 2024, only the following states still have an active HAF:
- Colorado
- Georgia
- Idaho
- Iowa
- Kentucky
- Mississippi
- Montana
- New Jersey
- Nevada
- North Dakota
- South Dakota
- Tennessee
- Washington
Funds from the HAF are not guaranteed forever, and states may close their programs when they no longer have federal funding for this program. Find out how to extend mortgage relief and learn more about the effects of forbearance in the next slides.
By Admin –
