$85M in Mortgage Relief Available to Kentucky Homeowners

Learn about Kentucky’s new COVID mortgage-relief program. You might be eligible for free money from the government (up to $35,000) to pay your mortgage and other housing-related costs.

By , Attorney

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 expenses due to COVID-19.

Eligible homeowners in Kentucky who've experienced a financial hardship because of the pandemic can get a piece of the approximately $85 million allocated to the state—up to $35,000 per household—from the state's Homeowner Assistance Fund (HOAF) program. This program uses federal money to help homeowners in Kentucky make mortgage payments and pay other home-related costs.

Available Financial Help for Kentucky Homeowners

The Kentucky Homeowner Assistance Fund program offers the following kinds of assistance to eligible homeowners.

Eligibility Requirements for the Kentucky Homeowner Assistance Fund Program

To qualify for relief from this program, you must have suffered a financial hardship (a material reduction in income or an increase in living expenses) after January 21, 2020, because of the coronavirus pandemic. In addition, you have to meet some other guidelines:

  • The home, which must be located in Kentucky, has to be your primary residence.
  • The home must be a single-family home, townhouse, condominium, or manufactured home. Second homes, investment properties, abandoned, vacant, or condemned properties don't qualify.
  • Your income must be below a certain threshold. Check your income eligibility at the Kentucky HOAF website.

Applicants may be in an active or discharged Chapter 7 or 13 bankruptcy. But your mortgage servicer might object if you're in active bankruptcy.

How the Kentucky Homeowner Assistance Fund Program Works

Assistance is structured as a grant that you don't have to repay. Only in cases of fraud or wrongful misrepresentation would an applicant have to repay the funds. Payments go directly to the loan servicer or other eligible third party, not to homeowners.

How to Apply for the Kentucky Homeowner Assistance Fund Program

To apply for help from this program, go to the application portal at the Kentucky Homeowner Assistance Fund website. You'll have to provide some documentation with your application, like mortgage statements, proof of income (such as pay stubs and tax returns), and a government-issued ID (like a driver's license).

How Long Will Kentucky's Homeowner Assistance Fund Program Last?

The Kentucky HOAF program will continue until the earlier of September 30, 2025, 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 Kentucky Homeowner Assistance Fund 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.

Learn More About the Kentucky Homeowner Assistance Fund Program

If you have questions or need more information, call 866-830-7868 or go to the Kentucky Homeowner Assistance Fund program FAQs website. If you need help with your application, contact a HUD-approved housing counselor who will assist you at no cost. To find a counselor near you, go to HUD's website or call 800-569-4287.

Effective date: February 7, 2022