Virginia Mortgage Relief Program Ending October 1: Apply Before the Deadline

Deadline: October 1, 2023

Virginia homeowners struggling with pandemic-related mortgage hardship are running out of time. The Virginia Mortgage Relief Program (VMRP) will stop accepting new applications on October 1, 2023, Virginia Housing announced. The program, which distributes Virginia's share of the federal Homeowner Assistance Fund (HAF), has already disbursed more than $171 million to eligible homeowners across the Commonwealth.

Why the Program Is Closing

VMRP was funded through Section 3206 of the American Rescue Plan Act of 2021, which created the $9.96 billion federal Homeowner Assistance Fund to help homeowners recover from COVID-19 financial hardship. Virginia received a fixed allocation of that money, and with demand exceeding supply, Virginia Housing determined that closing new-application intake on October 1 was necessary to ensure remaining funds can be responsibly processed for applications already in the pipeline.

Officials noted that the Commonwealth's federal funding is limited, and VMRP will continue operating only until the remaining American Rescue Plan funds are fully disbursed to approved applicants. Eligible applications received before October 1, 2023 will be processed based on remaining funding availability, with homeowners at imminent risk of foreclosure receiving priority.

Who Qualifies

To be eligible, applicants must:

• Be a Virginia homeowner experiencing financial hardship associated with the COVID-19 pandemic (hardship occurring on or after January 21, 2020)
• Have past-due mortgage payments or qualified homeownership-related delinquencies such as property taxes, homeowner's insurance, homeowners' or condominium association fees, or utility arrearages
• Own and occupy a primary residence in Virginia (single-family home, condominium, or manufactured home)
• Meet program income limits tied to area median income

What Assistance Is Available

VMRP provides grant assistance (not a loan) to bring delinquent accounts current. Approved uses include past-due mortgage principal and interest, property tax and insurance arrears, HOA or condominium association delinquencies, and utility bill arrears tied to the home. Assistance is paid directly to the mortgage servicer or other qualified third parties on the homeowner's behalf.

How to Apply Before October 1

Homeowners can submit an application at VirginiaMortgageRelief.com or call the VMRP Call Center at 833-687-8677, Monday through Friday, 8 a.m. to 8 p.m. Virginia Housing recommends gathering mortgage statements, hardship documentation, proof of income, and identification before starting the application to avoid delays.

If You Miss the Deadline

Homeowners who can't apply before October 1 should still act. Options after the deadline include contacting the mortgage servicer directly to ask about loss-mitigation options (forbearance, loan modification, or a repayment plan), reaching out to a HUD-approved housing counseling agency for free foreclosure-prevention counseling, and, for veterans, exploring VA home-loan assistance options. Virginia Housing also maintains a list of statewide housing counselors who can help homeowners navigate alternatives once VMRP closes to new applications.

Bottom Line

With only weeks remaining before the October 1, 2023 cutoff, Virginia homeowners who fell behind on their mortgage, taxes, insurance, or HOA dues due to COVID-19 should apply now. Once the window closes, the federal pipeline of HAF grant money for new Virginia applicants closes with it.