Free Government Programs for Homeowners in Distress (2026 Guide)

Every year, billions of dollars in homeowner assistance go unclaimed. Many homeowners in distress don't realize that federal, state, and local programs exist specifically to help people in their situation. Here's a guide to the programs available in 2026.

Homeowner Assistance Fund (HAF)

Created under the American Rescue Plan Act, the HAF provides funds for mortgage payment assistance, property tax relief, utility payments, and other housing costs. Each state runs its own program with different eligibility criteria and fund availability.

What it covers: Past-due mortgage payments, property taxes, insurance, HOA fees, utility costs.

How to apply: Contact your state's HAF administrator. Visit the National Council of State Housing Agencies website for your state's program link.

HUD Housing Counseling

The Department of Housing and Urban Development funds a nationwide network of housing counseling agencies. These counselors are certified and trained to help you navigate your options — for free. They can negotiate with your lender on your behalf, help you apply for assistance programs, and explain your legal rights.

Contact: Call (800) 569-4287 or visit hud.gov to find a counselor near you.

FHA, VA, and USDA Loan Programs

If you have a government-backed loan, you may have access to specific loss mitigation programs. FHA offers partial claims and loan modifications. VA offers special forbearance and repayment plans for veterans. USDA has similar options for rural homeowners.

State-Specific Programs

Many states have their own foreclosure prevention funds, property tax relief programs, and emergency assistance. These vary widely — Indiana's IHCDA program, California's Mortgage Relief Program, and Ohio's Save the Dream are just a few examples. Your state's housing finance agency is the best starting point.

Nonprofit & Community Organizations

Community Development Financial Institutions (CDFIs) and nonprofit housing organizations often provide emergency loans, grants, and counseling. Organizations like NeighborWorks America, NACA, and local community land trusts may have programs specific to your area.