Hardest Hit Fund

Hardest Hit Fund Program – $7.6 billion in aid to help families avoid foreclosure

What is Hardest Hit Fund (HHF)?

Enacted: February 2010 – effective for mortgages originated on or prior to January 1, 2009

Since the beginning of the housing crisis in 2007, some parts of the country experienced unprecedented home price declines followed by high and prolonged unemployment. As most of these regions were in the center of the housing bubble the homeowners there saw the values of their properties declining steeper and deeper. Entire communities have been hit hard by the housing and financial crisis.

In 2010, U.S. Government launched Hardest Hit Fund Program. It offers $7.6 billion in aid to states hit hardest by the economic crisis. Since then States’ housing financial agencies have used allocated funds to develop programs aiming to stabilize local housing markets and help struggling homeowners avoid foreclosure.

Purpose of Hardest Hit Fund (HHF) Program

Stabilize hardest hit by economic crisis housing markets.

Goal of HHF

$7.6 billion in aid to be allocated to 18 states District of Columbia to help families avoid foreclosure.

Who may be eligible?

Eligibility varies from state to state and depends on the locally developed programs. Basically, all homeowners in financial hardship, living in one of the following 18 states: Alabama, Arizona, California, Florida, Georgia, Illinois, Indiana, Kentucky, Michigan, Mississippi, Nevada, New Jersey, North Carolina, Ohio, Oregon, Rhode Island, South Carolina, Tennessee or District of Columbia, and who:

  • Are delinquent or in danger of falling behind on their mortgage payments
  • Hold mortgage loans originated on or before January 1, 2009
  • Are US Citizen or legal U.S. Resident
  • Have a monthly mortgage payment over 31% of their gross monthly household income
  • Have been unemployed or underemployed
Contact your mortgage company for details on Hardest Hit Fund to see if you are currently eligible. 

How to apply?

To apply for Hardest Hit Fund Benefits contact your State Housing Finance Agency.

Hardest Hit Fund Program Benefits

Hardest Hit Fund programs vary state to state, but may include:

  • Mortgage payment assistance for unemployed or underemployed homeowners
  • Principal reduction to help homeowners get into more affordable mortgages
  • Funding to eliminate homeowners’ second lien loans
  • Help for homeowners who are transitioning out of their homes and into more affordable places