The Tennessee Housing Development Agency has launched a new federally-funded program that is designed to help homeowners who are delinquent on their mortgage payments due to COVID-19 related financial hardship.
The Tennessee Homeowner Assistance Fund (TNHAF), which was created as part of the American Rescue Plan and is being administered in the state by THDA, officially launched on Jan 10. 2022. THDA received over $168 million in funding for the program.
“We think this funding will go a long way in helping homeowners in Tennessee who haven’t been able 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 throughout the state, to make sure that Tennesseans are able to pay money they owe and avoid foreclosure on their homes.”
Currently, 3.3 percent of Tennessee mortgage holders are delinquent more than 90 days on their mortgage payments, according to figures from CoreLogic.
The TNHAF program was established to provide assistance to income-eligible Tennessee homeowners who are experiencing financial hardship associated with the COVID-19 pandemic. Recipients may apply for and receive assistance up to $40,000 per household for past due mortgage payments, property taxes, insurance premiums, HOA fees and other specified housing costs.
TNHAF funds will be used to eliminate or reduce past due payments and other delinquent amounts, including payments under a forbearance plan.
Homeowners who live in Tennessee, have a household income less than $119,850 and have experienced financial hardship after January 21, 2020 related to the COVID health crisis may apply for assistance.
Qualifying hardships are unemployment, underemployment (loss of income), death of an occupying spouse or co-borrower or an increase in certain expenses directly related to Covid-19.
Tennessee residents who wish to apply for the TNHAF program can visit thda.org/haf to access the online portal and begin the application process.