New Expansion of Mortgage Assistance Program in Maryland to Support and Empower Over 1,000 Additional Homeowners

Mortgage Assistance Program Expansion

New Carrollton, May 25, 2023 – Since its launch in March 2021, the Homeowner Assistance Fund program by the Maryland Department of Housing and Community Development has been instrumental in supporting homeowners facing financial challenges. The program has successfully helped over 11,000 homeowners, including 6,000 individuals on the brink of foreclosure, to remain in their homes. In response to the evolving housing market conditions and the impact of rising interest rates on loan modifications, the Department has expanded the program to provide an additional relief option for eligible homeowners. This expansion allows mortgage servicers to offer assistance by funding up to six months of forward payments for qualified applicants, benefiting an estimated 1,000 more Maryland residents.

Secretary Jake Day of the Maryland Department of Housing and Community Development commended the adaptability of the Homeowner Assistance Program, stating, “The department has quickly adapted the Homeowner Assistance Program to extend its reach given new housing market conditions that didn’t exist when the program started. This assistance supports long-term, sustainable solutions for homeowners who are still dealing with the aftereffects of pandemic-related hardships.”

The Homeowner Assistance Fund provides a range of support, including legal assistance, delinquent mortgage payment through loan modifications, grants to prevent displacement due to property taxes, association fees, water and sewer charges, and other housing-related expenses. To date, the program has disbursed over $125 million to eligible homeowners, with an average assistance of $17,100 per household.

A Bowie resident, who was days away from foreclosure, shared their experience of working with the Maryland Homeowner Assistance Fund. In a letter to the Department, they expressed gratitude, stating, “If it were not for DHCD and its Homeowner Assistance Fund team, I would have lost my home to foreclosure. HAF stepped in and processed my application. The foreclosure sale was canceled two days later, and my loan was reinstated. HAF also paid for my water bill arrears! Shout out to HAF for having such amazing staff!”

The new forward payment option does not require an additional application. The Department is also reviewing past applications to identify homeowners eligible for the forward payment option and will reach out to offer assistance. For detailed information on eligibility and to apply for assistance, individuals can visit

Established under the American Rescue Plan Act of 2021, the HAF program aims to provide relief to homeowners facing financial hardships since January 21, 2020. The Maryland Department of Housing and Community Development was allocated a total of $248 million to administer through the program.

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