TDHA Announces New Mortgage Relief Program for Those Financially Hurt by COVID

Nashville, Tennessee. The Tennessee Housing Development Agency has launched a new federally funded program that is designed to help homeowners who are behind on their mortgage payments due to financial hardship related to COVID-19.

The Tennessee Homeowner Assistance Fund (TNHAF), created as part of the U.S. bailout and administered in the state by THDA, was officially launched on January 10. 2022. THDA has received over $168 million in funding for the program.

“We believe this funding will go a long way in helping Tennessee homeowners who have been unable to make their mortgage payments through no fault of their own,” THDA Executive Director Ralph M. Perrey said. “We look forward to working with eligible homeowners, as well as banks and lenders across the state, to ensure that Tennesseans are able to pay the money they owe and avoid seizure of their homes.”

Currently, 3.3% of Tennessee mortgage holders are more than 90 days behind on their mortgage payments, according to figures from CoreLogic.

The TNHAF program was created to provide assistance to income-eligible Tennessee homeowners experiencing financial hardship associated with the COVID-19 pandemic. Recipients can apply for and receive assistance of up to $40,000 per household for overdue mortgage payments, property taxes, insurance premiums, HOA fees, and other specified housing costs.

TNHAF funds will be used to eliminate or reduce overdue payments and other overdue amounts, including payments under a forbearance plan.

Homeowners who live in Tennessee, have a family income of less than $119,850, and experienced financial hardship after January 21, 2020, related to the COVID health crisis, can apply for assistance.

Eligible hardships are unemployment, underemployment (loss of income), the death of an occupying spouse or co-borrower, or an increase in certain expenses directly linked to Covid-19.

Tennessee residents who wish to apply for the TNHAF program can visit thda.org/help-for-homeowners/haf to access the online portal and begin the application process.