Government Mortgage Assistance: Making Homeownership Dreams a Reality

Government Mortgage Assistance such as the Homeowner Assistance Fund (HAF) and FHA loans assist homeowners who have been affected by the COVID-19 pandemic and other financial hardships. The funding is used for specific expenses like home repairs, property taxes, mortgage payments, and the like. Some mortgage assistance programs have different eligibility requirements and criteria.

Learn more about government mortgage assistance, its eligibility requirements, the application process, and more.

What is Government Mortgage Assistance?

Government mortgage assistance refers to a program that helps struggling homeowners pay for different home expenses like repairs, taxes, and utilities. There are different types of mortgage assistance. Some are offered by private entities while others are by the federal government. In this article, we will discuss more about mortgage assistance offered by the federal government.

Types of Assistance

To know more about how mortgage assistance work, below is a list of the different types of mortgage assistance depending on your need or situation.

Eligibility Requirements

Eligibility requirements may vary depending on the type of mortgage assistance program and the location you reside. Generally, applying for government mortgage assistance may require the following:

  1. Experienced financial hardship like the COVID-19 pandemic or th3 high inflation rates
  2. Have an income below 150 percent of your area's median income. Some states may set lower limits
  3. Filled-out the application form

Note: You may inquire your local government for a specific list of eligibility requirements.

How to Apply for Mortgage Assistance?

The application process may not be the same in each state or area. You should also take note of the following when applying for mortgage assistance.

Government mortgage assistance provides financial assistance to homeowners who are struggling to pay mortgage payments, home repairs, and due taxes. There are many types of mortgage assistance based on your needs. Also, when applying for mortgage assistance, you should make sure to meet the eligibility requirements set by the program.

Frequently Asked Questions

To help you better understand government mortgage assistance, below is a list of frequently asked questions from clients.

Do I have to pay back the money I received?

Some types of mortgage assistance programs like the ones given as grants do not have to be paid back by the homeowner. However, mortgage assistance in the form of loans usually requires clients to pay back the assistance received.

In other cases, the assistance program may require repayment if, for example, you decide to sell your home before a specified date.

What property types are eligible?

The types of homes eligible for mortgage assistance may vary depending on the program’s eligibility requirements. Most mortgage assistance programs offer assistance to different types of homes such as:
• Duplex
• Condominium
• Single-family homes
• Manufactured homes
• One-to-four-unit dwellings

What can be covered by a mortgage assistance program?

The expenses that are covered by the mortgage assistance program may vary depending on the program’s aims and criteria. Generally, mortgage assistance covers the following expenses:
• Mortgage payment dues
• Property taxes
• Homeowners association fees
• Homeowners Insurance
• Utility expenses such as electric bills, water bills, and gas
• Other housing expenses such as repairs and internet service

How will I receive the aid?

In most cases, your mortgage assistance aid may be sent directly to your mortgage servicer, the contractor responsible for repairs, or the utility company. In cases where the money is used for mortgage payments, you may discuss the process with your servicer.

What other mortgage assistance is available aside from HAF and FHA mortgage assistance programs?

If you have not met the eligibility requirements of government mortgage assistance programs such as HAF or FHA mortgage assistance programs, there are still other options that you can try. Several government agencies that offer mortgage assistance include the Department of Housing and Urban Development (HUD) and the Federal Housing Finance Agency (FHFA).

How can I avoid scams?

Scams are undeniably rampant nowadays, so we always have to be vigilant with the type of assistance programs offered to us to avoid being victimized. Scammers use a common tactic wherein they require homeowners in need of assistance to pay an upfront fee before offering any kind of service. In some cases, scammers try to charge fees for programs that are supposed to be free of charge.

Additionally, it’s important to be aware of the papers you sign. Scammers sometimes make homeowners sign papers and pay fees other than mortgage loan payments.