Idaho Mortgage Relief Program: Financial Aid for Homeowners

Facing financial hardship and the risk of losing a home is an incredibly stressful experience. For Idaho homeowners struggling with mortgage payments, it is crucial to know that effective, legitimate help is available. The primary source of this support is the Idaho mortgage relief program, officially the Homeowner Assistance Fund (HAF).

This program was specifically designed to provide a financial lifeline to those who have fallen behind on payments due to circumstances beyond their control. Administered by the Idaho Housing and Finance Association (IHFA), the HAF program offers substantial aid to help eligible homeowners reinstate their mortgages and cover past-due housing expenses.

This resource provides a complete overview of the Idaho Homeowner Assistance Fund, outlining eligibility, covered expenses, and the application process. It also details the broader support network available, including free housing counseling and legal aid, ensuring every homeowner can protect their most important asset.

The Idaho Homeowner Assistance Fund (HAF) Explained

Understanding the HAF program is the first step toward leveraging its benefits. It is not a traditional loan but a targeted relief effort with a specific structure, purpose, and administrator.

2.1 What is the HAF Program?

The Homeowner Assistance Fund is a federal program created by the American Rescue Plan Act of 2021. This legislation allocated funds to states to help households financially impacted by the COVID-19 pandemic. Idaho received approximately $72 million to establish its program to prevent mortgage delinquencies, defaults, and foreclosures.

The state's program, the Idaho Homeowner Assistance Fund, was launched to mitigate these financial hardships. Its primary goals are to help homeowners reinstate delinquent mortgages, resume affordable monthly payments, and prevent the displacement of Idahoans from their homes.

2.2 How the Assistance Works: An Interest-Free Forgivable Loan

The assistance is provided as an interest-free, forgivable loan, not a grant. This structure is a critical detail for applicants to understand.

Loan Structure

The funds do not accrue interest and do not require monthly payments. However, the loan must be repaid when the homeowner sells the property, transfers ownership, or refinances their primary mortgage. This allows the program to provide immediate relief without adding to a household's monthly debt.

Repayment and Forgiveness

By creating a mechanism for repayment, the program allows resources to be recycled for future affordable housing initiatives. Crucially, the loan includes forgiveness provisions. If proceeds from a home sale are not enough to cover the HAF assistance, the remaining balance is forgiven. The loan may also be fully forgiven after the homeowner remains in the property for 10 years.

2.3 Who Manages the Program?

The Idaho Homeowner Assistance Fund is managed by the Idaho Housing and Finance Association (IHFA). The IHFA is a state-chartered organization dedicated to expanding housing opportunities in Idaho. As a U.S. Department of Housing and Urban Development (HUD) approved housing counseling agency, the IHFA has the expertise to manage complex federal housing programs.

Designating the IHFA as the administrator ensures that HAF funds are distributed by a trusted, experienced entity. The IHFA's role extends beyond processing applications; it serves as a central hub for housing support, offering counseling and other resources to help homeowners navigate financial challenges.

Determining Your Eligibility for HAF Assistance

The HAF program has specific criteria to ensure aid is directed to homeowners who need it most. These requirements relate to financial hardship, household income, and property type.

3.1 Core Requirements for Applicants

To qualify for assistance, an applicant must meet several foundational requirements.

• Financial Hardship: Applicants must attest to a "Qualified Financial Hardship" after January 21, 2020. This is defined as a material reduction in income or a significant increase in living expenses caused by the COVID-19 pandemic.
• Homeownership and Residency: The property must be located in Idaho and be the applicant's primary residence. The program is not available for second homes or investment properties.
• Delinquency Status: The applicant must be behind on mortgage payments or other qualifying housing expenses. This includes homeowners in forbearance or those who have already entered the foreclosure process.

3.2 Household Income Limits

A homeowner's total annual household income must be equal to or less than 150% of the Area Median Income (AMI) for their county or 100% of the median income for the United States, whichever is greater. These limits are published annually by HUD.

To serve the most vulnerable, at least 60% of Idaho's HAF funds are reserved for homeowners with incomes at or below 100% of the AMI. This ensures that the majority of assistance reaches those with the greatest need.

3.3 Eligible Property Types

The program supports a wide range of common homeownership structures in Idaho.

• Single-family homes (attached or detached).
• Condominiums.
• Properties within a cooperative.
• Manufactured homes permanently affixed to real property.
• One-to-four-unit properties, if the homeowner lives in one unit as their primary residence.

What Expenses Are Covered by the HAF Program?

The Idaho HAF program covers a comprehensive range of housing-related expenses to prevent foreclosure. The maximum assistance a household can receive is $50,000.

Funds can be used for both past-due amounts and, in some cases, upcoming payments.

• Mortgage Reinstatement: The primary use is to bring a delinquent mortgage current. This includes all past-due principal, interest, and any fees advanced by the mortgage servicer. The program can also cover up to three months of forward mortgage payments.
• Other Essential Housing Costs: HAF also addresses other critical needs that can lead to foreclosure.
• Property Taxes: Funds can be used to clear delinquent property taxes.
• Homeowners' Insurance: HAF can pay for past-due insurance premiums.
• HOA and Condominium Dues: Assistance can be used to resolve debts with homeowners' or condominium associations.
• Utility Bills: Past-due utility bills may be covered if the delinquency threatens homeownership.

The HAF Application Process: A Step-by-Step Walkthrough

The application for the Idaho Homeowner Assistance Fund is conducted online and requires careful preparation of documents.

5.1 Preparing Your Documentation

Before starting the online form, collect the following documents for all adult household members:

• Proof of Identity: A government-issued photo ID, such as a driver's license.
• Proof of Income: This can include recent paystubs, W-2 forms, tax returns, or statements for Social Security, pension, or unemployment benefits.
• Housing Expense Information: Current statements or bills showing past-due amounts for your mortgage, property taxes, insurance, or HOA dues.
• Hardship Attestation: A signed statement describing the financial hardship and its relation to the COVID-19 pandemic.

5.2 Submitting Your Application

The application should be submitted through the official IHFA portal: https://www.idahohousing.com/homeowners/haf/. Homeowners who need help with the online application can contact the IHFA by email at haf@ihfa.org or by phone at 888-991-2166.  

5.3 After You Apply: How Payments Are Disbursed

If an application is approved, HAF funds are paid directly to the third party, such as the mortgage servicer or county tax authority. The homeowner does not receive a check.

This direct-to-servicer model prevents fraud and ensures funds are used for their intended purpose. It also provides an official record that the delinquency has been resolved, which can help halt foreclosure proceedings more effectively.

Beyond HAF: Additional Foreclosure Prevention and Housing Resources in Idaho

The HAF program is part of a larger support system for Idaho homeowners. Several organizations offer free, expert guidance and legal assistance.

6.1 Free, Expert Guidance: HUD-Approved Housing Counseling

Homeowners can access free, confidential advice from HUD-approved housing counseling agencies. These nonprofit organizations are trained to provide guidance on a wide range of housing issues.  

A housing counselor can:

• Assess your financial situation and create a budget.
• Explain all options to avoid foreclosure, such as loan modifications or repayment plans.
• Negotiate with your mortgage lender on your behalf.
• Assist with the HAF program application.
• Provide education on homeowner rights.

Homeowners who work with a housing counselor are significantly more likely to avoid foreclosure. The Idaho Housing and Finance Association (IHFA) is a primary provider of these services.

HUD-Approved Housing Counseling Agencies in Idaho

6.2 Idaho Legal Aid Services

For low-income homeowners facing complex legal issues related to foreclosure, Idaho Legal Aid Services is a critical resource. This organization provides free civil legal assistance to eligible Idahoans.

Idaho Legal Aid can help with housing issues by;

• Reviewing loan and foreclosure documents for legal violations.
• Providing legal advice on homeowner rights.
• Representing homeowners in negotiations or court.
• Assisting tenants in a property facing foreclosure.

Homeowners needing legal advice can contact the statewide Idaho Legal Aid Housing Hotline at (208) 746-7541.

6.3 Other Financial Assistance Programs from IHFA

The IHFA offers a suite of programs that support Idahoans at various stages of homeownership.

• Down Payment and Closing Cost Assistance: IHFA offers programs that provide this assistance, often as a second mortgage or forgivable loan, to help Idahoans purchase a home with reduced upfront costs.
• Idaho Heroes Loan Program: This program offers favorable mortgage rates and down payment assistance to essential workers, including healthcare professionals, first responders, military personnel, and teachers.
• Home Improvement Loans: IHFA provides fixed-rate home improvement loans that allow homeowners to use their home's equity for necessary repairs or upgrades.

Protecting Yourself from Mortgage Relief Scams

During times of financial distress, homeowners are vulnerable to predatory scams. Recognizing the warning signs is essential for protection.

7.1 Warning Signs of a Scam

Be wary of any person or company that:

• Asks for a fee in advance. Legitimate housing counseling is free, and the HAF program has no application fee.
• Guarantees they can stop a foreclosure. No one can guarantee this outcome.
• Tells you to stop making mortgage payments or to pay them instead of your lender.
• Pressures you to sign documents you don't understand or to sign over the deed to your home.

7.2 How to Protect Yourself

The best defense is to work only with trusted, official organizations.

• Never pay for foreclosure prevention help. Free assistance is available from HUD-approved agencies.
• Contact your mortgage servicer first. They are the only ones with official information about your loan.
• Only work with official sources like HUD-approved counselors, Idaho Legal Aid, and the IHFA.
• Report suspicious activity to the Idaho Department of Finance and the Federal Trade Commission (FTC).

By following these guidelines and relying on verified resources, Idaho homeowners can confidently seek the help they need to overcome financial hardship.

 Frequently Asked Questions