The Maryland Department of Housing and Community Development (DHCD) has announced the launch of the Maryland Homeowner Assistance Fund Program to provide Mortgage Assistance and Home Repair assistance to eligible Maryland Citizens impacted by the COVID-19 pandemic
Mortgage Assistance (Grant & Loan)
The Homeowner Assistance Fund (HAF) was created under section 3206 of the American Rescue Plan Act of 2021. It provides residential mortgage assistance to Maryland homeowners who have experienced a hardship during the COVID-19 pandemic to avoid loss of residence for eligible homeowners. The Maryland Department of Housing and Community Development will administer the program by taking applications through an online portal and working with mortgage servicers so that HAF assistance is supplementary to standard loss mitigation efforts.
The program will offer a one-time payment designed to avoid imminent displacement due to, but not limited to:
• Tax delinquency, chattel loan or land lease delinquency
• Homeowner fee /condominium association fee delinquency
• Home Insurance fees
• Mortgage delinquency Specific grant eligibility: The HAF Grant borrowers’ household gross income may not exceed 100% of area median income (AMI)
• Outright grant - there is no lien recorded on the property
• Maximum assistance - $10,000
The program will offer a one-time payment of a delinquent mortgage amount and/or additional funds to facilitate a principal curtailment or rate reduction to reduce ongoing mortgage payments to levels affordable to the homeowner.
Specifically, the HAF funds will be required to result in the monthly mortgage payments (principal and interest) being less than 40% of the household gross income. Servicer’s loss mitigation workout must be used to cure the delinquency and/or bring the monthly mortgage payment below 40% of the household gross income before using HAF money. Assistance payments will be made directly to the mortgage servicer. Specific loan eligibility and terms: The HAF Loan borrowers household gross income may not exceed 150% of area median income (AMI).
• The loan will require a recorded lien on the property
• $30,000 maximum loan amount
• 0% interest rate
• Deferred payments for the life of the first mortgage
• Payment due in full when the first mortgage ends (repayment, refinance, transfer, sale)
• Repayment is subject to review and the department may, based on homeowner situation and needs at the time of repayment:
o Require payment in full
o Establish a payment plan
o Allow full or partial forgiveness.
Home Repair Program
The Homeowner Assistance Fund (HAF) was created under section 3206 of the American Rescue Plan Act of 2021. It provides residential mortgage assistance to Maryland homeowners who have experienced hardship during the COVID-19 pandemic to avoid loss of residence for eligible homeowners. The Maryland Department of Housing and Community Development will administer the funds to support mortgage relief, weatherization, housing counseling and legal services.
In order to be eligible under the WholeHome HAF Grant , all borrowers will have to be/have:
● an eligible COVID-19 financial hardship after January 21, 2020 (includes hardships that began before January 21, 2020, but continued after that date)
● Maryland resident
● homeowners residing in their primary residence
● homeowners by evidence of the deed of trust
● Applicant must be at/or below 150% County AMI per Household Size (see chart below)
● Provide a work proposal for the emergency repair by a licensed and insured Maryland Home Improvement Contractor with appropriate Photos or Drawings