Texas Homeowners $65K Mortgage Relief Program Assistance

Overview of the Texas Homeowner Assistance Fund

The Texas Homeowner Assistance Fund (TXHAF) was the state's implementation of the federal Homeowner Assistance Fund authorized under the American Rescue Plan Act. The program was administered by the Texas Department of Housing and Community Affairs (TDHCA) and was designed to help eligible Texas homeowners who experienced a COVID-19-related financial hardship.

Up to $65,000 in Combined Assistance

TXHAF offered eligible households up to $65,000 in combined assistance across several categories:

• Up to approximately $40,000 in mortgage assistance, including past-due balances and limited future payments
• Up to approximately $25,000 in property tax and property charge assistance
• Up to $10,000 in utility assistance (counted within the $65,000 cap)
• Assistance for hazard, flood, and wind insurance premiums, mortgage insurance, condominium and HOA fees, and similar property charges

The $65,000 cap applied across all categories, and homeowners could combine assistance types as long as they did not exceed the per-household limit.

Who Qualified

To qualify for TXHAF, homeowners needed to meet several key requirements:

• Experienced a financial hardship after January 21, 2020, caused by the COVID-19 pandemic
• Household income at or below 100% of Area Median Income or the U.S. median income, whichever was greater
• Own and occupy a single-family home, condominium, manufactured home, or 1-to-4 unit property in Texas
• The hardship occurred before a specified cutoff date tied to the federal program rules

The program prioritized socially disadvantaged homeowners and households at or below 100% AMI, consistent with federal Homeowner Assistance Fund guidance.

Program Impact

Since launch, TXHAF has assisted more than 20,000 households and distributed more than $200 million in assistance. Reported breakdowns have shown:

• Approximately 72% of funds went to mortgage assistance
• Approximately 26% went to property tax and property charge assistance
• The remainder went to insurance premiums and utilities

That distribution underscores that for most Texas homeowners seeking help, the mortgage and property tax balances were the most pressing risks to homeownership.

How Homeowners Applied

Homeowners applied through the TXHAF online portal and could receive free, in-person help through community partner organizations across the state. Required documentation typically included:

• Proof of identity and homeownership
• Mortgage statements and property tax records
• Income documentation for all household members
• Evidence of the COVID-19-related hardship

Payments were made directly to mortgage servicers, taxing authorities, insurance carriers, and utility companies rather than to homeowners.

Status of the Program

HAF programs nationally, including TXHAF, were designed to wind down as their federal allocations were committed. The federal program required that hardships qualifying for assistance occurred after January 21, 2020 and prior to a specified cutoff in 2023, and many state programs have since paused intake or closed their applications.

Resources for Texas Homeowners Today

Even with TXHAF's window closing for most applicants, Texas homeowners facing financial hardship have other resources:

• HUD-approved housing counseling agencies offer free foreclosure-prevention counseling
• Many loan servicers offer forbearance, loan modification, or partial claim options
• Property tax payment plans and deferrals are available through county tax offices for seniors, disabled veterans, and qualifying homesteads
• Utility assistance through LIHEAP and local Community Action Agencies remains available each heating and cooling season

Key Takeaway

TXHAF represented one of the largest targeted mortgage-relief programs in Texas history, with an ambitious $65,000-per-household cap and combined mortgage, tax, and utility support. Its combined reach of 20,000-plus households and $200 million illustrates the scale of pandemic-era financial strain on Texas homeowners, and the value of designing a single program that could address multiple homeownership costs at once.