Texas Mortgage Assistance Program Opens for Statewide Applications
The Community Housing Assistance Program- Texas Emergency Mortgage Program is now offering funds to Texans who are recovering from the financial impacts of COVID-19. Funded by the Texas Department of Housing and Community Affairs, granted funds will provide aid to eligible individuals and families who are struggling to pay their mortgages. Mortgage assistance payments will be available to households whose incomes are at or below 80% or less of Area Median Income (AMI).
IF YOU ARE AT RISK OF LOSING YOUR HOME DUE TO THE FINANCIAL IMPACTS OF COVID-19, WE CAN HELP
State officials have rolled out a “Texas Homeowner Assistance Fund” that is designed to help homeowners who’ve fallen behind on mortgage payments and other housing costs during the pandemic.
The program has about $700 million in federal funds available to help folks get caught up on mortgage payments, property taxes, mortgage insurance, and HOA fees.
The money is given out as grants to qualifying homeowners; it is not a loan that needs to be paid back. A household can receive up to $40,000 for mortgage payment assistance and up to $25,000 for property taxes, home insurance, and HOA fees.
Before the statewide launch this week, two limited pilot programs were operating. Those programs have paid out more than $5 million so far.
While rental assistance has been delivered through a mix of state, county and city programs, mortgage assistance is solely available through the state program.
Applications are primarily being taken online at texashomeownerassistance.com.
There are some restrictions. To qualify, homeowners must:
- Live in and own their homes
- Have faced financial hardship due to the pandemic
- Earn an income at or below the median income in their community
In 2021, Congress approved nearly $10 billion in mortgage assistance funds as part of the Biden Administration’s American Rescue Plan. It was part of a strategy to prevent a foreclosure crisis as the pandemic upended the economy. Texas received $842 million for its program and dedicated most of that to helping homeowners directly.
It’s taken more than a year for Texas to receive its share of the funding and roll out its program statewide.
Homeowners struggling to pay their mortgage on time have had the option to sign up for mortgage forbearance. Forbearance prevents a bank from foreclosing on a homeowner behind on their payments. Any missed payments still need to be paid back.
Financial assistance for renters has been available since early 2021, though the state’s program has stopped taking applications because it is running out of funds.
However, most of the state’s largest cities and counties still have rental assistance funds available. Some, like Arlington, Austin, and San Antonio have run out.
In North Texas, qualified renters in Collin, Dallas, Denton, and Tarrant Counties can still get help with rent and utilities. Most large North Texas cities also still have funds: Dallas, Fort Worth, Frisco, Garland, Irving, Plano.
Federal eviction protections for renters ended last summer, though a handful of cities and counties still have some pandemic-era renter protections.