Government Mortgage Assistance: Complete 2025 Guide
The federal government offers multiple mortgage assistance programs through different agencies. This guide explains every government program available, who qualifies, and exactly how to apply.
Updated for 2025: While the COVID-era foreclosure moratoriums have ended, many federal and state assistance programs remain active. This page covers all current options.
Federal Programs at a Glance
Emergency Funds
- • Homeowner Assistance Fund (HAF)
- • State emergency programs
- • Disaster relief assistance
Loan-Specific
- • FHA partial claim & modifications
- • VA assistance & refund mods
- • USDA special servicing
GSE Programs
- • Fannie Mae Flex Modification
- • Freddie Mac Flex Modification
- • Payment deferrals
Free Help
- • HUD housing counseling (free)
- • HOPE Hotline (24/7 free)
- • Legal aid resources
Homeowner Assistance Fund (HAF)
The largest federal mortgage assistance program. States received funding to help homeowners catch up on past-due mortgage payments, property taxes, insurance, utilities, and HOA fees. This is direct payment assistance (the state pays your servicer directly).
How Much Assistance?
Varies by state, but typically:
- • $30,000 to $50,000 per household (some states more)
- • Covers arrears going back to January 2020
- • Can include future payments (3-6 months forward in some states)
- • Property taxes and insurance included
Who Qualifies:
- • Income at or below 150% of area median income
- • Financial hardship after January 21, 2020
- • Own and occupy as primary residence
- • Most states prioritize income below 100% AMI
- • Some states require past-due payments
Application Process:
- • Apply through your state's housing agency
- • Each state has unique portal/process
- • Typically 30-60 days for review
- • State pays servicer directly if approved
- • Many programs first-come, first-served
⚠️ Important Status Update:
Many state HAF programs are running low on funds or have closed to new applicants. Some states (like California, Illinois, New Jersey) exhausted their allocation in 2023-2024. Check your state's status immediately.
FHA Loan Assistance (Federal Housing Administration)
If you have an FHA-insured loan, you have access to special government-backed assistance programs that conventional loans don't offer.
FHA Partial Claim (Best Option)
HUD pays your servicer up to 12 months of past-due payments. You get a zero-interest second mortgage that you repay only when you sell or refinance. No monthly payments on the past-due amount.
This is often the single best option for FHA borrowers. Zero interest, no monthly payments, immediate return to current status.
Requirements: 4+ months behind, less than 12 months delinquent, able to afford regular payment now, temporary hardship resolved.
Complete FHA Assistance Guide →FHA Loan Modification
Permanently change your loan terms to make payments affordable. FHA modifications can reduce your interest rate, extend the term, or defer principal.
Best for: Long-term income reduction where even after catching up on arrears, you can't afford your current payment.
FHA Special Forbearance
Temporarily suspend or reduce payments for up to 12 months while you recover from hardship. Must have repayment plan afterward.
Contact: Your mortgage servicer's loss mitigation department. Say "I have an FHA loan and need to discuss forbearance options."
VA Loan Assistance (Veterans Affairs)
Veterans with VA-guaranteed loans have access to specialized assistance programs and dedicated VA support staff.
VA Refunding Modification
Lower your interest rate to the current VA market rate. This can significantly reduce your monthly payment without needing to refinance.
Best for: Veterans with older VA loans at higher interest rates who are current or recently became current.
VA Partial Claim
Similar to FHA partial claim. VA pays your past-due amount, you get a zero-interest second lien, resume regular payments immediately.
VA Loan Modification
Extend the term, reduce the rate, or defer principal to make payments affordable long-term.
VA-Specific Resources:
- • Veterans Crisis Line: 1-800-273-8255 (Press 1) - 24/7 support
- • VA Loan Tech Support: 1-877-827-3702
- • Online: VA.gov/housing-assistance
- • Local VA Office: Find at VA.gov/find-locations
Veteran Priority: VA servicers are required to make "reasonable efforts" to contact you before foreclosure and must assign you a VA loan technician.
Fannie Mae & Freddie Mac Programs
Most conventional loans are owned or guaranteed by Fannie Mae or Freddie Mac (the Government-Sponsored Enterprises or GSEs). If your loan is owned by either, you have access to standardized assistance options.
Check Loan Ownership:
Find out if Fannie or Freddie owns your loan (takes 30 seconds):
- • Fannie Mae: KnowYourOptions.com/loanlookup
- • Freddie Mac: MyHome.FreddieMac.com/lookup
Flex Modification
Both Fannie and Freddie offer "Flex Modifications" that can reduce your payment by extending the term (up to 40 years), lowering the rate, or deferring principal.
Target payment: Modifications aim to reduce your principal and interest payment to 20% of your gross income (before taxes and insurance).
Requirements: 90+ days delinquent or imminent default, hardship documentation, sufficient income for modified payment.
Payment Deferral
Move up to 12 months of missed payments to the end of your loan. Resume your regular payment immediately with no lump sum required.
Best for: Temporary hardship that's now resolved. You can afford your regular payment but can't pay the past-due amount all at once.
Repayment Plan
Spread past-due amount over 3-6 months by adding extra to your regular payment each month.
Example: 3 months behind ($6,000). Add $1,000/month to regular payment for 6 months.
USDA Rural Housing Loans
If you have a USDA Rural Development loan (also called Section 502 Direct or Guaranteed loans), you have access to USDA-specific assistance through "special servicing."
USDA Special Servicing Options
- • Loan Payment Subsidy Recalculation: USDA can adjust your payment assistance based on current income
- • Moratorium: Temporarily suspend payments (similar to forbearance)
- • Loan Modification: Extend term up to 40 years, reduce interest rate
- • Special Amortization: Move past-due amount to end of loan
Contact USDA:
- • Call your loan servicer first (not USDA directly)
- • USDA must approve all special servicing actions
- • Your servicer coordinates with USDA on your behalf
Free Government Counseling & Support
HUD Housing Counseling
Free, expert counseling from HUD-approved agencies. They can review your situation, explain options, and even contact your servicer on your behalf.
1-800-569-4287
Find counselors near you →HOPE Hotline
24/7 foreclosure prevention counseling in English and Spanish. Available nights, weekends, and holidays.
1-888-995-HOPE (4673)
Open 24/7, multilingual support
How to Access Government Assistance
Determine Your Loan Type
Check your loan documents or call your servicer. Ask "Is my loan FHA, VA, USDA, or conventional? If conventional, is it owned by Fannie Mae or Freddie Mac?"
Contact Your Servicer First
Call your mortgage servicer's loss mitigation department. Explain your hardship and ask to be evaluated for all available assistance options based on your loan type.
Apply for State HAF (If Available)
Check if your state still has HAF funds available. Apply immediately if so, as many programs are first-come, first-served.
Get Free Counseling
Contact a HUD-approved counselor for expert guidance on which government programs you qualify for and help with applications.
Submit Complete Applications
Gather all required documents and submit complete applications. Incomplete applications cause delays. Follow up weekly on status.
Find Your Personalized Government Options
Take our free triage to see which federal and state programs you qualify for based on your loan type, payment status, and location.
Start Free 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.