$146M Available to Louisiana Homeowners Facing Foreclosure

You might qualify for up to $25,000 from Louisiana’s new COVID mortgage-relief program.

In early 2021, President Joe Biden signed the American Rescue Plan Act into law. This law created a Homeowner Assistance Fund, a federal program, to give $10 billion to the states to help households that are behind on their mortgages and other housing-related expenses due to COVID-19.

Eligible homeowners in Louisiana who've experienced a financial hardship because of the pandemic can get a piece of the $146.7 million allocated to the state, up to $25,000 per household, from the Louisiana Homeowner Assistance Fund program. This program helps homeowners affected by COVID-19 who are behind on their mortgages and at risk of foreclosure.

What Kind of Mortgage Relief Can I Get in Louisiana?

Louisiana's Homeowner Assistance Fund program will provide money to:

Mortgage loans in forbearance, delinquent loans not in forbearance, and loans in foreclosure can qualify for assistance.

How Can I Qualify for the Louisiana Homeowner Assistance Fund Program?

To qualify for financial help from Louisiana's Homeowner Assistance Fund program, you must meet all of the following eligibility requirements.

  • You must own and occupy a home in Louisiana as your primary residence. (Eligible properties include single-family homes, condos, one- to four-unit properties where the homeowner lives in one of the units as a primary residence, manufactured homes permanently affixed to real property and taxed as real estate, and mobile homes not permanently affixed to real property.)
  • You must have experienced a financial hardship associated with the COVID-19 pandemic after January 21, 2020. Hardships that started before January 21, 2020, but continued past this date, can also qualify.
  • You must have an income equal to or less than 150% of the area median income (AMI) for your household size or 100% of the median income for the United States, whichever is greater, as defined by the U.S. Department of Housing and Urban Development. (Go here to view 100% and 150% median income information by parish.)

Under U.S. Department of the Treasury rules, priority for assistance will be given to lower-income homeowners and socially disadvantaged homeowners, such as members of a group that have been subjected to racial or ethnic prejudice or cultural bias within American society.

How the Louisiana Homeowner Assistance Fund Program Works

Assistance is structured as a grant that you don't have to repay. In most cases, funds from the program will be distributed directly to your mortgage servicer. Each household can get up to $25,000.

How to Apply for Louisiana's COVID Mortgage Relief Program

To apply for help from this program, go to the Louisiana Homeowner Assistance Fund website. You'll need to create an account and answer a few pre-screening questions. Once you've registered, you can fill out and submit an application.

You'll need to provide some documentation with your application, like a government-issued ID (such as a driver's license). You might also have to submit mortgage statements, pay stubs, wage statements such as a W-2 form, IRS Form 1099s, and tax filings. For a full list of the documents you need, go here. Your case manager will contact you via the application portal to get any additional documentation required to complete the process.

You'll be able to log in to the portal at any time to check the status of your application and see whether it has been approved.

How Long Will Louisiana's Mortgage Relief Program Last?

The Louisiana Homeowner Assistance Fund program will continue until the earlier of September 30, 2026, or when all of the funds allotted to the program have been exhausted. If you think you might qualify, it's best to apply as soon as possible.

Avoid Homeowner Assistance Fund Scams

If you get an unsolicited offer by phone, in the U.S. mail, through email, or by text message offering mortgage relief or foreclosure rescue services, be wary. Scammers are increasingly targeting homeowners who've been affected by COVID-19. The Louisiana Homeowner Assistance program is free. If anyone asks you to pay a fee to get housing counseling or foreclosure prevention services from this program, it's a scam. If you experience any fraud related to the program, be sure to report it.

Getting Help

To learn more about the Louisiana Homeowner Assistance Fund program and eligibility criteria, see the program's Frequently Asked Questions section. If you need help with the application process, call 833-88-LAHAF, email Info@LACovidHousing.com, or contact a HUD-approved housing counselor, who will help you at no cost. To find a counselor near you, go to HUD's website or call 800-569-4287.

If you have questions about the foreclosure process in Louisiana or want to learn about potential defenses to a foreclosure, consider talking to a foreclosure lawyer.

Effective date: January 10, 2022