Mortgage payment information grants are usually run by state housing agencies, nonprofits, and community development organizations—not by banks or the federal government directly

Most grants come through programs tied to your state or county, and they work differently than loans. A grant does not have to be repaid. The money typically goes to your lender to cover missed payments, property taxes, or insurance arrears. You will need proof of hardship (job loss, medical emergency, income reduction), your mortgage documents, and often a signed agreement from your lender that they will not foreclose while you are in the program.

The catch: many programs have limited funding and close when money runs out. Some reopen later in the year. The fastest way to find out what is currently open in your area is to call your state housing finance agency or contact 211 (dial 2-1-1 or visit 211.org), which connects you to local resources and can tell you which programs are accepting requests right now.

Key Takeaways

  • State housing finance agencies and nonprofits run most mortgage information grants; your lender does not administer them.
  • Grants cover back payments, property taxes, and insurance rather than future monthly payments, and the money goes to your lender, not to you.
  • You will need your mortgage statement, proof of hardship, and often a written commitment from your lender to pause foreclosure while you are in the program.
  • Many programs close when funding runs out; 211 and your state housing agency can tell you which programs are open this month.
  • Processing usually takes four to twelve weeks, so contact your lender early to ask them to delay any foreclosure action while you pursue information.

State housing finance agencies and what they fund

Every state has a housing finance agency (sometimes called a housing authority or development agency). These agencies manage federal and state money for homeowner information. Some run their own grant programs; others distribute money to nonprofits and local governments that do the actual work. The programs they fund typically cover arrears (payments you have already missed), property taxes in arrears, homeowners insurance, and sometimes utilities or HOA fees.

To find your state agency, search "[your state] housing finance agency" or visit the National Council of State Housing Agencies website (ncsha.org). Call them directly and ask which mortgage information programs are currently open. They can tell you the income limits, what hardship qualifies, and whether the program is taking new requests. Some states have multiple programs with different rules, so asking which one fits your situation saves time.

Nonprofit organizations and community action agencies

Community action agencies (CAAs) exist in most counties and often run mortgage information programs funded by federal grants or state money. They are nonprofit, locally based, and familiar with the specific lenders and courts in your area. Many have staff who can contact your lender on your behalf or help you negotiate a payment plan while you wait for a grant decision.

To find your local CAA, visit the Community Action Partnership website (communityactionpartnership.org) or search "[your county] community action agency." You can also call 211 and ask for mortgage information referrals; they will know which organizations in your area have active programs. CAAs often have shorter wait times than state agencies because they handle fewer requests, though their funding may be smaller.

HUD-approved housing counselors and what they can do

HUD (the U.S. Department of Housing and Urban Development) does not run a direct grant program for homeowners, but it funds housing counseling agencies that help you find and navigate local programs. A HUD-approved counselor can review your mortgage documents, help you understand what information you may be able to access, and often contact programs on your behalf. Many counselors work for nonprofits and charge nothing.

To find a HUD counselor near you, visit HUD's website (hud.gov/counseling) or call 1-800-569-4287. They can tell you which programs in your state are open, what documents you need, and whether your situation makes you a priority (for example, if you are facing imminent foreclosure). Some counselors can also help you negotiate with your lender to pause foreclosure while you pursue a grant.

What documents you will need to gather

Before you contact any program, collect these items: your current mortgage statement, proof of the hardship (termination letter, medical bills, proof of reduced income), your most recent tax return, recent pay stubs or proof of current income, and a list of your monthly expenses. Programs use these to confirm you have a real hardship and that you cannot pay without information.

You will also need your lender's contact information and, ideally, written permission from your lender to discuss your loan with the information program. Some programs require the lender to sign an agreement that they will not foreclose while you are in the program. Having your lender's name, loan number, and the servicer's phone number ready speeds up the process. If you do not have your mortgage statement, call your servicer (the company you send payments to) and ask them to send one.

how the process works and what to expect during processing

Once you have identified a program that is open, contact them by phone or online to request an process. Most programs ask you to submit documents by mail, email, or through an online portal. Do not wait for a formal letter; call and ask what they need and how to send it. Programs that are actively taking requests usually respond within a few days to confirm receipt.

Processing typically takes four to twelve weeks. During this time, contact your lender and tell them you have applied for information. Ask them in writing to hold off on foreclosure or late-payment reporting while your request is being reviewed. Some programs can send a letter to your lender confirming you are in their pipeline. Once approved, the program pays your lender directly; you do not receive the money yourself. The lender applies it to your arrears and updates your account.

What to do if a program is closed or you do not meet the requirements

If the program you found is closed, ask when it will reopen. Many state programs close for a few weeks or months when they run out of money, then reopen with new funding. Put your name on a waiting list if one exists. In the meantime, contact your lender and ask about loan modification, forbearance, or a repayment plan. These are not grants, but they can pause or reduce your payment temporarily while you look for other options.

If you do not meet income limits for one program, try others. Income limits vary widely; a program that rejects you might have a higher limit than you expect. If you have already fallen behind significantly (more than six months), some programs prioritize you because foreclosure is imminent. Ask each program whether being in active foreclosure helps or hurts your chances. If you are not a U.S. citizen, some programs have citizenship requirements and others do not; ask directly rather than assuming you are ineligible.

Frequently Asked Questions

Can I get a grant if I am already in foreclosure?

Yes. Many programs prioritize people facing imminent foreclosure because the need is urgent. Bring your foreclosure notice to the program; they use the court date to determine how quickly to process your request. Some programs can contact the court to ask for a delay while information is being reviewed.

What if my lender refuses to work with the information program?

Some lenders are slow to respond or reluctant to pause foreclosure. Ask the information program whether they have dealt with your lender before and what their experience is. If the lender refuses to cooperate, some programs can pay you directly instead, though this is less common. Document the lender's refusal in writing and share it with the program.

Do I have to repay a mortgage information grant?

No. A grant is not a loan and does not have to be repaid. The money covers arrears you already owe. Some programs do require you to stay current on future payments, and a few place a lien on your home that is forgiven after a set period (usually five to ten years) if you stay in the home and keep paying.

Can I explore for more than one program at the same time?

Yes. Different programs have different rules and funding levels, so explore to multiple programs increases your chances. Tell each program you are explore elsewhere so they do not duplicate effort. Once one program approves you, notify the others so they can close your request.

What happens if I get approved but my situation changes before the money is paid?

Contact the program when ready and tell them. If your income has increased significantly or you have resolved the hardship, you may no longer need the information and can withdraw. If your situation has worsened, the program may be able to increase the amount. Programs want to help people who still need it, so being honest protects your approval and frees up money for others.