Updated for 2025

Mortgage Assistance Programs: Your Complete Guide

Billions of dollars in federal and state mortgage assistance is available. This guide explains every program, eligibility requirements, and how to apply.

Federal Assistance Programs

Homeowner Assistance Fund (HAF)

Available Now in Most States

The Homeowner Assistance Fund is a $10 billion federal program distributed through state housing agencies. It provides direct payment assistance for past-due mortgage payments, property taxes, insurance, utilities, and HOA fees.

✅ Who Qualifies:

  • • Income at or below 150% of area median income
  • • Experienced financial hardship after Jan 2020
  • • Owns and occupies property as primary residence
  • • Priority for income below 100% AMI

💰 What's Covered:

  • • Past-due mortgage payments (principal, interest, escrow)
  • • Property taxes and insurance
  • • HOA/condo fees
  • • Utilities (in some states)
  • • Up to $30,000-50,000 per household (varies by state)

How to Apply:

HAF is administered by individual states. Each state has its own application portal, requirements, and deadlines. Many programs are first-come, first-served.

Find Your State's HAF Program

⚠️ Important: Many state HAF programs are running out of funding or have closed to new applicants. Apply as soon as possible if your state's program is still open.

Fannie Mae & Freddie Mac Flex Modification

If your loan is owned or backed by Fannie Mae or Freddie Mac (most conventional loans), you may qualify for a Flex Modification that permanently reduces your payment by extending the term, reducing the interest rate, or deferring principal.

Check if Fannie/Freddie owns your loan:

Requirements: At least 90 days delinquent or imminent default, hardship documentation, sufficient income for modified payment.

State-Specific Programs

Many states have their own mortgage assistance programs separate from HAF. These programs vary widely in eligibility, funding amounts, and availability.

States with Active Programs (2025):

California
New York
Florida
Illinois
Michigan
New Jersey
Pennsylvania
Ohio
+ 30 More States

FHA & VA Loan Programs

FHA Partial Claim (Best Option for FHA Borrowers)

If you have an FHA-insured loan and fell behind due to temporary hardship, the government may pay your servicer the past-due amount (up to 12 months of payments). You repay this amount with a zero-interest loan when you sell or refinance—no monthly payments required.

This is one of the best options available if you have an FHA loan!

  • • Zero-interest loan from HUD
  • • No monthly payments on past-due amount
  • • Resume regular mortgage payments immediately
  • • Repay only when you sell or refinance

Requirements: FHA loan, hardship documentation, current income sufficient for regular payments, brought current within 12 months or less behind.

→ Complete FHA Help Guide

VA Loan Assistance (Veterans Only)

Veterans with VA loans have access to special assistance programs including forbearance, repayment plans, loan modifications, and partial claims similar to FHA.

Contact VA for Assistance:

  • • Veterans Crisis Line: 1-800-273-8255 (Press 1)
  • • VA Loan Tech Support: 1-877-827-3702
  • • Online: VA.gov/housing-assistance

Your Servicer's Loss Mitigation Options

Regardless of loan type, your mortgage servicer is required to evaluate you for all available "loss mitigation" options before proceeding with foreclosure. These include:

Short-Term Options:

  • Forbearance: Temporarily reduce or pause payments (3-12 months)
  • Repayment Plan: Spread past-due amount over 3-6 months
  • Payment Deferral: Add missed payments to end of loan

Long-Term Solutions:

  • Loan Modification: Permanently change loan terms (rate, term, principal)
  • Partial Claim: HUD/VA pays past-due amount (FHA/VA loans only)
  • Principal Reduction: Reduce loan balance (rare, investor-dependent)

Nonprofit & Emergency Assistance

Free HUD-Approved Housing Counseling

HUD-approved housing counselors provide free expert guidance on all available options, help you understand your rights, and can advocate on your behalf with your servicer.

Find a HUD Counselor:

Homeowner's HOPE Hotline

24/7 free foreclosure prevention counseling in English and Spanish. Available nights, weekends, and holidays.

📞 1-888-995-HOPE (4673)

How to Apply for Assistance

Step-by-Step Process:

1

Contact Your Servicer First

Call the loss mitigation department and explain your hardship. Ask what options you qualify for. Document everything (dates, names, reference numbers).

2

Apply for State/Federal Programs

If your state has HAF or other assistance programs, apply immediately. These are often first-come, first-served and many are running out of funding.

3

Get Free Counseling

Contact a HUD-approved counselor for expert guidance on which options are best for your situation and help navigating the application process.

4

Gather Documentation

Most programs require: proof of hardship, income documentation (pay stubs, tax returns), bank statements, hardship letter, and proof of property occupancy.

5

Submit Complete Applications

Submit applications as quickly as possible with all required documents. Incomplete applications cause delays. Follow up weekly on status.

Find Out Which Programs You Qualify For

Answer a few questions about your situation and we'll show you personalized recommendations including state programs, federal assistance, and servicer options.

Get Personalized Recommendations

Important 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.