The Louisiana Homeowner Assistance Fund Program Provides $25K Grants To Help Homeowners Behind on Their Mortgage
The Louisiana Homeowner Assistance Fund program is a federally funded financial relief program for homeowners financially impacted by COVID-19 who are behind on their mortgages and at risk of foreclosure. The program will provide up to $25,000.00 in financial aid to low- to moderate-income families. The U.S. Treasury Department funds this program through the American Rescue Plan Act (H.R. 1319) and the Louisiana Office of Community Development administers it. It will provide an allocated $146.7 million to prevent mortgage delinquencies, defaults, and foreclosures. If your delinquency amount is greater than the program cap of $25,000.00, your mortgage servicer will need to agree to a loan modification or loss mitigation plan.
The Louisiana Homeowner Assistance Fund program provides funding to reinstate a mortgage or to pay other housing-related costs from a period of forbearance, delinquency, or default, mortgage payment assistance, as well as homeowner’s insurance, homeowner association fees, flood insurance, and mortgage insurance, if escrowed.
Who Is Eligible for the Louisiana Homeowner Assistance Fund program?
Louisiana homeowners in need of assistance can apply to the program which is free to participate and also completely voluntary. Furthermore, if their application is approved, the program will transfer allocated funding directly to their respective mortgage servicer. Eligibility requirements include owning and occupying a home in Louisiana as their primary residence, having experienced a financial hardship associated with the COVID-19 pandemic after January 21, 2020, and also meeting the income qualifications. The Louisiana Homeowner Assistance Fund program is available statewide to homeowners earning less than 150% of the area median income or 100% of the national median income, whichever is greater. The 2021 100% U.S. Median Income is $79,900.00. You can view the Area Median Income by parish on the following link:
According to their official site, eligible properties include:
- Single-family (attached or detached);
- Condominium units;
- 1 to 4-unit properties where the homeowner is living in one of the units as their primary residence;
- Manufactured homes permanently affixed to real property and taxed as real estate;
- And also, mobile homes not permanently affixed to real property.
The application process for this program starts by filling out the pre-screening at the following link, creating an account, and also providing documents. Furthermore, applicants will be able to log in to the portal at any time to check the status of their applications.