Mortgage Relief Grants 2026: Homeowner Assistance Fund Guide

The Homeowner Assistance Fund is a massive $9.961 billion federal program that was established by the American Rescue Plan Act. This law was designed to provide relief to people facing financial hardships during the COVID-19 pandemic. While the U.S. Department of the Treasury oversees the program at the national level, the actual money is managed at the state level. This means that each state, territory, and tribe gets to run its own specific program to help residents with mortgage payments, insurance, and even utility bills.

The primary goal of this mortgage relief grants information guide tvg is to show you how these federal dollars are put to work. By distributing funds to local governments, the program ensures that help is tailored to the specific needs of different communities. Since its launch, the program has already helped hundreds of thousands of families avoid foreclosure and get back on their feet.

While the U.S. Department of the Treasury has allocated these billions of dollars, it is important to understand that the money is not just handed out to everyone. The rules for who can get this help are very specific, and each state has its own way of deciding who qualifies for a grant.

Eligibility Requirements for Federal Mortgage Assistance

Knowing that help is available is the first step, but the next is checking if you qualify. The Homeowner Assistance Fund was designed to catch those who fell through the cracks during the pandemic. However, the program has specific gates you must pass through to access these funds. It is not enough to just be behind on your payments; you have to show that your situation matches the federal guidelines.

To get started, you should review this basic checklist of homeowner assistance fund eligibility criteria. These rules ensure the money goes to those who truly need it most to keep their homes.

You must have experienced a financial hardship after January 21, 2020.
Your household income must be at or below the program limits, which is typically 150% of the area median income or $79,900, whichever is higher.
The property must be your primary residence.
You must provide documentation of your income and the nature of your hardship.
The timing of your financial hardship is one of the most critical factors. Because the fund was created by the American Rescue Plan Act, it specifically targets those whose lives were disrupted during the COVID-19 era. If your struggle began before January 2020, you might not qualify under these specific rules. The good news is that for those who do meet the criteria, most of these funds are non-repayable grants. This means you can get your mortgage back on track without adding another monthly bill to your plate.

Income limits are another major hurdle. While the general rule is 150% of the area median income, the $79,900 floor helps families in lower-cost regions still access support. This flexibility was built in to account for the different costs of living across the United States. If you are unsure where your income falls, a housing counselor can help you calculate your standing against the local averages.

Even if you meet every rule on the list, you should act quickly. Meeting these eligibility requirements is only half the battle, as many state programs are currently reaching their funding limits and closing their doors to new applicants.

The Current Landscape of State HAF Programs

While the Homeowner Assistance Fund is a federal initiative, your experience with it depends entirely on where you live. The federal government set the rules and provided the $10 billion in funding, but each state manages its own pot of money. This means that a homeowner in one state might easily access government mortgage relief grants while a neighbor across the state line finds the doors already closed.

The original goal was for these programs to remain active until September 2026. However, the high demand for help has changed that timeline for many. Because 90% of state funds have already been spent or assigned, many programs have been forced to suspend applications or close permanently well ahead of the deadline. This creates a patchwork of availability across the country.

Open vs Closed Programs
Even though the national trend is toward closure, several states still have active programs. For instance, the Georgia Department of Community Affairs continues to accept applications for those facing financial hardships. Similarly, the New Jersey Housing and Mortgage Finance Agency is still working with homeowners to distribute their remaining share of the federal allocation.

If you live in a state where the program is still open, it is vital to act quickly. These government mortgage relief grants are usually distributed on a first-come, first-served basis. Once the specific state allocation is gone, the program ends, regardless of how many people still need help. The table below shows a few examples of agencies that were still processing applications as funds remained available.

State Administering Agency Status
Georgia Georgia Department of Community Affairs Open
New Jersey New Jersey Housing and Mortgage Finance Agency Open
Montana Montana Housing Open
North Dakota North Dakota Department of Human Services Open
US Virgin Islands Virgin Islands Housing Finance Authority Open
If you check your local website and find that your state program is suspended or closed, do not lose hope. While you might not be able to get a direct grant right now, there are still critical legal protections available. For example, if you have a mortgage backed by Fannie Mae or Freddie Mac, you may still be eligible for a 60-day foreclosure pause while you seek other forms of assistance.

Mortgage Property Real Estate Debt ConceptMortgage Relief Grants Information Guide TVG: Navigating the Homeowner Assistance Fund
The 60-Day Foreclosure Pause Strategy

If you are facing immediate legal action from your lender, there is a powerful tool you should know about. For many homeowners, simply submitting an application for the Homeowner Assistance Fund can act as a temporary shield. This is a vital pro-tip for those who feel they are running out of time to save their homes.

Borrowers with mortgages backed by Fannie Mae or Freddie Mac have a specific advantage. Once you apply for HAF assistance, these entities allow for a foreclosure pause of up to 60 days. This window is designed to give the state program enough time to process your application and distribute funds without the constant threat of losing your property in the meantime.

The Consumer Financial Protection Bureau has highlighted this protection to ensure homeowners know their rights during the recovery process. While this pause is a formal expectation for certain government-backed loans, it provides the breathing room necessary to finalize your financial recovery plan.

The Consumer Financial Protection Bureau notes that for mortgages backed by Fannie Mae or Freddie Mac, servicers can pause foreclosure proceedings for up to 60 days once a homeowner applies for HAF assistance.
It is important to check who owns or insures your loan, as the rules change depending on the agency. While Fannie Mae and Freddie Mac have these clear windows of protection, other agencies like the FHA, VA, and USDA take a different approach. These organizations only encourage their mortgage servicers to pause foreclosure proceedings, but they do not strictly require it as a rule.

Because these legal pauses involve specific federal guidelines and timing, they can be tricky to manage on your own. Navigating the intersection of foreclosure prevention programs and state grant applications is often much easier with professional help. Connecting with a housing counselor can ensure you use these 60 days effectively to secure your future.

How to Apply and Avoid Common Scams

Taking action today is the best way to protect your home and your family’s financial future. While the process might seem overwhelming, help is available to guide you through every requirement for pandemic financial hardship assistance. Because these programs have limited funding, starting your application immediately is vital.

The most important thing to remember is that applying for the Homeowner Assistance Fund is completely free. You should never pay a company or individual to help you access these federal grants. If someone asks for an upfront fee to process your application or promises a guaranteed approval for a price, they are likely a scammer. Real help comes from official sources that do not charge homeowners for their services.

Visit the Consumer Financial Protection Bureau website to find the specific HAF program for your state or territory.
Use the official search tool to locate a HUD-approved housing counseling agency in your area.
Contact a counselor to help you gather required documents, such as proof of income and mortgage statements.
Submit your completed application through your state’s official portal.
Notify your mortgage servicer that you have applied for HAF to potentially trigger a foreclosure pause.
Working with professional counselors
A HUD-approved housing counseling agency is your best ally in this process. These professionals understand the specific rules of your state’s program and can help you explain your pandemic financial hardship assistance needs clearly. They can also assist in communicating with your mortgage lender while your application is under review.

The Consumer Financial Protection Bureau provides tools to help you verify the legitimacy of any organization offering help. By sticking with certified counselors, you ensure your personal information stays safe and your application meets the necessary standards for approval. These experts are trained to spot errors that could lead to a denial.

Time is running out to access these resources. The national program is scheduled to sunset in September 2026, but many states will close their doors much sooner if their portion of the $10 billion is fully disbursed. Reach out to a counselor today to secure your spot and protect your home before the remaining funds are gone.