Navigating the Homeowner Assistance Fund

The Homeowner Assistance Fund (HAF) is a nationwide program designed to help homeowners who faced financial hardship during the COVID-19 pandemic catch up on housing-related bills and avoid losing their homes. This guide explains who qualifies, what costs may be covered, and how to navigate the application process in your state or territory.

1. What the Homeowner Assistance Fund Is and Why It Matters

The Homeowner Assistance Fund was created by the American Rescue Plan Act of 2021 and is administered by the U.S. Department of the Treasury. Treasury provides funding to states, U.S. territories, Tribes, and the District of Columbia, which then operate their own HAF programs for homeowners where they live.

Although each local program has its own rules, they all share the same core mission: help eligible homeowners stay in their homes by covering overdue or ongoing housing expenses tied to pandemic hardship.

2. Who Can Qualify for HAF Assistance?

Every state and eligible jurisdiction has slightly different rules, but most programs share several common eligibility factors. You typically must:

• Own and live in the home as your primary residence.
• Have experienced a financial hardship linked to COVID-19, such as job loss, reduced work hours, increased medical or caregiving expenses, or other cost increases.
• Have household income within program limits, often at or below 150% of area median income or a fixed dollar cap, such as $79,900, whichever is higher, subject to local adjustments.
• Be behind on housing-related bills or be at serious risk of falling behind, such as being in mortgage forbearance that is ending or facing a delinquency or default.

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2.1 Types of Homes That May Be Eligible

Most HAF programs cover a broad range of residential properties, provided they are your main home. These can include:

• Single-family homes
• Condominiums
• Duplexes and other one-to-four-unit properties (if you live in one of the units)
• Manufactured or mobile homes (in many states)

Because property eligibility rules differ, it is important to review the specific details of your state or tribal program before applying.

2.2 Income Limits and Priority Groups

The American Rescue Plan requires that HAF funds primarily serve homeowners with lower or moderate incomes. Program rules commonly include:

• Income caps based on area median income (AMI), often set at or below 150% of AMI.
• Additional priority for very low-income households, socially disadvantaged communities, or homeowners who are seriously delinquent or in imminent foreclosure.
• State- or territory-specific income tables that factor in household size and location.

Many programs publish online income limit charts. If your income is close to the limit, it is still worth checking; your local program’s thresholds might be higher than you expect.

3. What Housing Costs Can HAF Cover?

HAF is flexible and can be used for a range of housing-related expenses, but each local program decides which costs it will cover and in what order of priority. According to Treasury and federal guidance, funds may be used for:

• Mortgage payments, including:
• Past-due payments needed to reinstate the loan
• Current or upcoming payments for a set period
• Partial lump-sum payments to help resolve forbearance or trial modifications

• Other housing-related charges, such as:
• Property taxes and tax liens
• Homeowners insurance (including hazard, flood, or mortgage insurance premiums)
• Homeowners association or condo fees
• Ground rent or lot fees for manufactured homes, where eligible

• Essential utilities and services, for example:
• Electricity and gas
• Home heating (oil, propane, firewood, or other home energy sources)
• Water and wastewater bills
• Some programs also include internet service, recognizing its role in work and schooling.

• Certain home repairs directly tied to maintaining safe occupancy, such as repairs that address health and safety issues, may be covered in some programs.

No program covers every possible expense. Your local rules determine which costs qualify, how much you can receive, and whether there are caps per household.

4. How HAF Works with Your Mortgage Servicer

HAF assistance is typically paid directly to your mortgage servicer, tax authority, utility company, or other payee rather than to you personally. Mortgage servicers are generally expected to cooperate with HAF programs, including VA-backed loans and other federally supported mortgages.

In many cases, HAF is combined with existing loan workout or modification options. For example:

• HAF funds may be used to reinstate a delinquent mortgage while your servicer modifies your loan to make future payments more affordable.
• If you are exiting a COVID-19 forbearance plan, HAF may help cover the lump sum or partial amount needed to bring the loan current.
• For VA, FHA, USDA, and other government-backed loans, servicers can apply HAF funds alongside the program’s standard home-retention options.

Because coordination with your servicer is crucial, it is wise to stay in touch with them throughout the application process and notify them that you have applied for or received HAF assistance.

5. Step-by-Step: Applying for Homeowner Assistance Fund Help

Application procedures vary by state, territory, Tribe, and local program, but most follow a similar pattern.

5.1 Prepare Your Information and Documents

To speed up the application, gather the following before you begin (requirements may differ slightly in your area):

• Identification for all adult household members, such as a driver’s license or other government ID
• Proof that you own and occupy the home (for example, a deed, property tax bill, or mortgage statement)
• Recent mortgage statements or other housing bills (HOA, utilities, property taxes)
• Documents showing your income, such as pay stubs, tax returns, benefit letters, or profit-and-loss statements if self-employed
• Evidence of COVID-19-related hardship, including layoff notices, reduction in hours, medical bills, or statements about caregiving or other pandemic-related expenses

5.2 Complete the Application

Most programs accept applications online, and some offer phone or paper options for those without internet access. During the application, you can expect to:

• Confirm that the property is your primary residence
• Describe your financial hardship and when it began (it must be tied to the pandemic period, often after January 21, 2020 or a similar cutoff date set by your program)
• Provide income information for all adult household members
• List which bills you need help with (mortgage, utilities, taxes, insurance, etc.)

Some programs may contact your mortgage servicer or other providers directly to confirm balances and amounts due.

5.3 Work with a HUD-Approved Housing Counselor

If you feel overwhelmed, consider reaching out to a HUD-approved housing counseling agency. These nonprofit counselors can help you:

• Check your eligibility for HAF and other assistance programs
• Gather documents and complete your application
• Communicate with your mortgage servicer and understand workout offers
• Explore backup options if HAF funds are not available in your area

HUD-approved counseling is generally free, and counselors are required to act in your best interest.

6. If You Are Denied or Funds Have Run Out

Because HAF is a limited-time, limited-funding program, not all applicants will receive assistance. If you are denied or your state’s funds are exhausted, you still have options.

6.1 Ask for an Explanation and Appeal if Allowed

If your application is denied:

• Contact the HAF program to request a clear explanation of the reason for denial (for example, income too high, property ineligible, or expenses not covered).
• Ask whether the program has a formal appeals process and what kind of additional information you may submit.
• Carefully review income calculations or hardship documentation to ensure accuracy.

6.2 Explore Other Forms of Assistance

If HAF is not available or you remain ineligible, you may still be able to protect your home by pursuing:

• Loan modification or repayment plans directly with your mortgage servicer
• Refinancing, if you qualify under current lending standards
• Loss mitigation programs for federally backed loans (such as FHA, VA, or USDA), which can offer structured ways to avoid foreclosure
• State or local foreclosure prevention funds outside of HAF, where available
• Guidance from a HUD-approved housing counselor to review all possible options

7. Timing, Deadlines, and What to Expect Next

HAF is not a permanent program. Federal law sets an outside date for program closeout, and states must spend or return their funds by specific deadlines established by Treasury. Many programs are actively winding down as they spend remaining funds, which means:

• Application windows may close with limited advance notice once funds are nearly exhausted.
• Processing times can vary widely depending on demand, staffing, and coordination with servicers.
• New applications may be restricted to homeowners facing the most urgent or severe hardships.

For the most accurate status, always check your state or tribal HAF program’s official website or contact them directly.

8. Practical Tips to Strengthen Your Application

Although you cannot control funding levels or program design, you can improve your chances of success and speed up processing by being thorough and proactive.

• Apply as early as you can. Because funds are limited, waiting can reduce your options.
• Answer questions clearly. Explain how COVID-19 specifically affected your income or expenses.
• Submit complete documentation. Missing or unclear documents are a common cause of delays.
• Stay reachable. Watch for emails, calls, or letters from the program and respond quickly to requests.
• Keep your servicer informed. Let your mortgage company know you have applied for HAF and update them if you receive an approval.
• Work with a counselor if you are unsure. Professional help can prevent mistakes and uncover additional assistance.

9. Frequently Asked Questions (FAQs)

Q1: Do I have to pay back money I receive from the Homeowner Assistance Fund?

In most cases, HAF assistance is structured as a grant or non-repayable benefit when used as intended and you comply with program terms. Some programs may record a lien or require repayment under specific circumstances (such as selling the home within a certain period), so review your award documents carefully.

Q2: Can I apply if my mortgage is already in foreclosure?

Many programs allow homeowners who are already in foreclosure to apply, but timing is critical. You should contact your local HAF program and your mortgage servicer immediately, as court or sale dates may limit what the program can do. A HUD-approved housing counselor can also help you understand your options.

Q3: What if I do not have a traditional mortgage?

HAF is not limited to standard first mortgages. Depending on your local program, you may qualify for help with contracts for deed, manufactured home loans, reverse mortgages, or property tax-only situations. Always check the specific property and loan types your state or tribal program covers.

Q4: Can I receive HAF help more than once?

Some programs allow multiple disbursements up to a maximum dollar amount per household, while others offer only a single award. If you have already received assistance and your circumstances change, contact the HAF program to see whether additional help is permitted under their rules.

Q5: Will applying for HAF affect my credit score?

HAF itself is not a loan and typically does not involve a credit check for eligibility. However, the underlying delinquency or foreclosure status on your mortgage can impact your credit. By helping you catch up on payments, HAF may limit further damage to your credit, but it does not erase past late payments already reported.

Q6: I am a veteran with a VA-backed loan. Does HAF still apply to me?

Yes. The Department of Veterans Affairs expects servicers of VA-backed loans to accept HAF funds where available and to use them alongside VA’s existing home-retention options, according to official VA guidance. You should still apply through your state or tribal HAF program rather than through VA directly.

Q7: What should I do while I am waiting for a decision?

Keep in contact with your mortgage servicer and other billers, explain that you have applied for HAF, and ask whether they can pause collections or foreclosure actions while your application is pending. Continue making partial payments if you can and stay in touch with a housing counselor if you have one.

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Author

Sneha TeteBeauty & Lifestyle Writer

 

Sneha is a relationships and lifestyle writer with a strong foundation in applied linguistics and certified training in relationship coaching. She brings over five years of writing experience to waytolegal,  crafting thoughtful, research-driven content that empowers readers to build healthier relationships, boost emotional well-being, and embrace holistic living.

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