FHA Mortgage Help: Your Complete Guide
FHA loans have special assistance programs that conventional loans don't. If you have an FHA loan, you may qualify for the FHA Partial Claim (one of the best programs available), FHA modifications, or special forbearance options.
Not sure if you have an FHA loan? Check your loan documents or contact your servicer. FHA loans are insured by the Federal Housing Administration and typically have lower down payment requirements (3.5%) and mortgage insurance premiums.
FHA Partial Claim
The government pays your past-due amount. You repay with a zero-interest loan when you sell or refinance.
How It Works:
You fall behind on payments (up to 12 months)
Due to temporary hardship like job loss, medical emergency, or disaster.
HUD pays your servicer the past-due amount
The government settles your arrears directly with your mortgage company.
You get a zero-interest second lien
This "subordinate mortgage" sits behind your main loan. No monthly payments required.
Resume your regular mortgage payment
You're immediately current. No catch-up payments needed.
Repay when you sell or refinance
The zero-interest loan is due when you sell, refinance, or pay off your mortgage. No interest ever accrues.
Requirements:
- • FHA-insured mortgage (original loan)
- • 4+ months delinquent, less than 12 months behind
- • Temporary hardship that has been resolved
- • Able to afford regular mortgage payment now
- • Owner-occupied primary residence
What's Covered:
- • Past-due principal and interest
- • Escrow shortages (taxes, insurance)
- • Late fees and penalties
- • Up to 12 months of payments (typically $15,000-30,000)
Why This Is the Best Option:
Unlike repayment plans (where you pay extra every month) or forbearance (where you still owe the full amount), the partial claim has zero interest and no monthly payments. You literally just resume your regular mortgage and deal with the past-due amount only when you sell or refinance years later.
Other FHA Assistance Options
FHA Loan Modification (FHA-HAMP Successor)
If you can't afford your current payment even after catching up on arrears, FHA offers loan modifications that permanently reduce your payment by extending the term, lowering the rate, or deferring principal.
Typical Modifications Include:
- • Interest rate reduction (often to market rate or below)
- • Term extension (up to 40 years total)
- • Principal forbearance (part of principal set aside with no interest)
- • Arrears capitalization (past-due amount added to principal)
Requirements:
- • Payment-to-income ratio above 31%
- • Documented hardship
- • Sufficient income for modified payment
- • Owner-occupied property
Timeline:
- • 60-90 days to review application
- • 3-month trial payment period
- • Permanent modification after trial
FHA Special Forbearance
Temporarily reduce or suspend your mortgage payments for up to 12 months while you recover from a hardship.
Important: Forbearance does not forgive payments. You'll need a repayment plan, loan modification, or partial claim after forbearance ends.
Best for: Short-term hardship where you expect income to return (temporary job loss, medical recovery, disaster recovery).
FHA Repayment Plan
If you missed 1-3 payments and can now afford your regular payment plus extra, spread the past-due amount over 3-6 months.
Example: You're 3 months behind ($6,000). Your servicer adds $1,000/month to your regular $2,000 payment for 6 months. You pay $3,000/month until caught up.
How to Apply for FHA Assistance
Contact Your Servicer's Loss Mitigation Department
Call your mortgage servicer (the company you make payments to, not FHA directly). Ask to speak with the loss mitigation or hardship assistance department.
Say: "I have an FHA loan and I'm experiencing financial hardship. I'd like to be evaluated for all FHA loss mitigation options, including the FHA partial claim."
Submit a Loss Mitigation Application
Your servicer will send you a package (often called "Request for Mortgage Assistance" or RMA). You'll need to provide:
- • Hardship affidavit (explanation of your situation)
- • Income documentation (pay stubs, tax returns, unemployment benefits)
- • Bank statements (2-3 months)
- • Hardship letter
Servicer Reviews Your Application
By law, servicers must evaluate you for all available options, starting with the ones that keep you in your home (partial claim, modification) before considering alternatives (short sale, deed-in-lieu).
Accept Assistance & Resume Payments
If approved for partial claim, sign the documents and resume your regular mortgage payment. If approved for modification, complete the 3-month trial period.
Documents You'll Need
Financial Documents:
- Last 2 pay stubs (or unemployment benefits statement)
- Last 2 years tax returns (1040 with all schedules)
- Last 2-3 months bank statements (all accounts)
- Profit & loss statement (if self-employed)
Other Documents:
- Hardship letter (explanation of your situation)
- Proof of hardship (layoff notice, medical bills, etc.)
- Copy of FHA loan documents (if available)
- Completed RMA form from your servicer
FHA Assistance FAQs
How do I know if I have an FHA loan?
Check your original loan documents for "FHA" or "Federal Housing Administration." You can also call your servicer and ask, "Is my loan FHA-insured?" FHA loans typically have lower down payments (3.5%) and require mortgage insurance premiums (MIP).
Can I get the partial claim if I'm not behind yet?
No. The FHA partial claim is only available if you're already 4+ months delinquent. If you're current but struggling, ask about FHA Special Forbearance first, then partial claim after forbearance ends.
Will the partial claim affect my credit?
Your credit was already impacted by the missed payments that made you eligible for the partial claim. The partial claim itself brings you current, which stops further credit damage. The subordinate lien (second mortgage) appears on your credit report but typically has less impact than ongoing delinquencies.
How much is the partial claim payment?
It covers up to 12 months of missed payments, including principal, interest, taxes, insurance, and late fees. Typical amounts range from $15,000 to $30,000 depending on your mortgage payment amount and how far behind you are.
What happens if I'm denied?
If denied for partial claim, ask for a written denial letter with specific reasons. You may still qualify for an FHA loan modification, repayment plan, or other options. A HUD-approved housing counselor can help you appeal or explore alternatives. Don't give up after the first denial.
Additional FHA Resources
FHA Resource Center
Official FHA information and support.
Phone: 1-800-CALL-FHA (225-5342)
Monday-Friday, 8am-8pm ET
HUD Housing Counseling
Free expert guidance on FHA assistance options.
Phone: 1-800-569-4287
Find counselors near youFind Out Which FHA Options You Qualify For
Take our free triage assessment and we'll show you personalized recommendations for your FHA loan, including eligibility for partial claim, modification, and other programs.
Start FHA Triage AssessmentImportant Disclaimer
We are not associated with the government or your lender. Your lender may not agree to change your loan. We are not a lender, law firm, or financial advisor. This is educational information and DIY templates only. Nothing on this site constitutes legal, tax, or financial advice.