Maryland Mortgage Aid Expands to Help 1,000+ More Homeowners Stay in Their Homes

Maryland homeowners behind on their mortgage now have an extra tool in their belt. The state's Department of Housing and Community Development (DHCD) has expanded the Maryland Homeowner Assistance Fund to cover up to six months of forward mortgage payments, an enhancement estimated to help more than 1,000 additional Marylanders stay in their homes.

The change, announced by Secretary Jake Day in May 2023, addresses a gap that had been tripping up households still struggling after a loan modification. With interest rates sitting well above what many borrowers originally locked in, even a modified mortgage can leave a family short on cash each month. The new forward-payment option covers the gap directly, without asking the homeowner to refinance or restructure a second time.

How much the program provides

Maryland was awarded roughly $248 million in federal Homeowner Assistance Fund money through the American Rescue Plan Act. As of the 2023 expansion, the state had already distributed more than $125 million to eligible residents. The average award per household has been about $17,100, though grants can cover the full amount needed to catch up on arrears plus the six forward payments in many cases.

Since the program launched in March 2021, more than 11,000 Maryland homeowners have received help — including roughly 6,000 who were facing active foreclosure at the time of application. The forward-payment expansion is layered on top of the existing benefits, which also include help with delinquent property taxes, HOA dues, condo fees, and water and sewer bills.

Who qualifies

To be eligible, a homeowner must:

• Own and occupy a primary residence in Maryland
• Have experienced a financial hardship after January 21, 2020 (the federal HAF cutoff date tied to the COVID-19 emergency declaration)
• Be behind on mortgage payments, property-related costs, or facing foreclosure
• Meet income limits, typically set at 150% of the Area Median Income or 100% of the U.S. median, whichever is greater

Homeowners who previously applied and were denied, or whose situation has changed, do not need to submit a fresh application — DHCD is proactively reviewing past files to identify households who now qualify under the expanded rules.

How to apply

Applications are handled online through the state's official portal at homeownerassistance.maryland.gov. The program is free; the state warns homeowners not to pay any third party claiming to help with the application. Legal assistance is available at no cost through DHCD's network of partner legal-aid organizations for homeowners already facing foreclosure proceedings.

The program is scheduled to remain open through September 30, 2026, or until the federal funding is fully committed — whichever comes first. With more than $125 million already out the door and the forward-payment expansion drawing additional applicants, homeowners who think they might qualify should apply sooner rather than later.

"The department has quickly adapted the program to extend its reach given new housing market conditions," Secretary Day said when announcing the expansion.

What counts as a hardship

The federal HAF rules define a qualifying financial hardship broadly. Job loss, reduced hours, medical expenses, the death of a household earner, and increased housing costs (such as a mortgage adjustment or property tax spike) all qualify. The hardship must have started on or after January 21, 2020 and be documented with pay stubs, layoff notices, medical bills, or similar records. Homeowners uncertain whether their situation qualifies are encouraged to apply anyway — DHCD case managers review each application on its individual facts.

For Maryland homeowners struggling to stay current on their mortgage, the expanded HAF program offers one of the most substantive federal safety nets available, with average awards well into five figures and no requirement to pay the money back.