Frequently Asked Questions - Homeowner Assistance Fund (HAF)

Q: When will Homeowner Assistance Fund (HAF) money be available?

A: Funding is now available. The statewide HAF program launched in July of 2022. You can apply here.

Q: Must I have a Montana Board of Housing loan in order to apply for HAF assistance?

A: No. If your home is owner occupied, located in Montana, and you meet eligibility requirements, you can apply for assistance even if your loan is not serviced by the Montana Board of Housing.

Q: Will all Montana homeowners be eligible to receive assistance?

A: No; certain qualifying requirements must be met, including:

• The homeowner must be listed as the borrower or co-borrower on the mortgage;
• The qualified expenses must be related to the current primary residence;
• The home must be owner occupied;
• The applicant must have experienced a financial hardship due to COVID-19 after January 21, 2020; and
• The household income must be less than 150% area median income.
• The applicant’s income must reflect that applicant will be able to make their future monthly mortgage payments.

Q: Does Financial Hardship due to COVID-19 mean job loss?

A: Financial Hardship means a material reduction in income or material increase in living expenses associated with the coronavirus pandemic that has created or increased a risk of mortgage delinquency, mortgage default, foreclosure, loss of utilities or home energy services, or displacement for a homeowner. You may find further information regarding the hardship requirement for the Homeowners assistance fund here: Sample COVID Impact Questionnaire (treasury.gov)

Q: How do I apply for the HAF Mortgage Reinstatement Program?

A: Montana Housing has an application portal on its website where borrowers are able to apply and upload necessary documentation. You can access that application portal here.

Q: Will the HAF Mortgage Reinstatement Program pay off my mortgage for me?

A: No; the HAF Mortgage Reinstatement Program is meant to provide funds to eliminate or reduce past due payments, including those under a forbearance plan. HAF funds may be used to bring an account fully current with no remaining delinquent amount.

Q: Will I have to pay the HAF Mortgage Reinstatement Program funds back?

A: Yes; the HAF Mortgage Reinstatement Program will be in the form of a non-forgivable, interest-free loan with payment due in full when the first mortgage ends (repayment, refinance, transfer, or sale). It is not a grant program.

Q: Will the HAF Mortgage Reinstatement Program make ongoing mortgage payments?

A: Yes; homeowners must affirm that they reasonably believe, based on the reinstatement and the homeowner’s current financial circumstances, that they will be able to continue making mortgage loan payments and avoid displacement. However, homeowner’s who are delinquent on their mortgage, and whose mortgage payment is more than 30% of their gross income, will also be eligible to receive up to six months of forward-facing mortgage assistance, to not exceed the maximum assistance per household. Homeowners for whom reinstatement will not be a long-term solution (unable to resume regularly scheduled payments, even with assistance through the HAF program), will not be eligible for reinstatement and will be referred to their mortgage servicer to explore other loss mitigation options.

Q: Which costs can the HAF Mortgage Reinstatement Program cover?

A: The HAF Mortgage Reinstatement Program can repay delinquent mortgage payments, limited forward-facing mortgage payments, and amounts advanced by the lender or servicer on the borrower’s behalf for property charges, including escrows, as well as preservation costs and certain legal fees.

Q: In which situations can the HAF Mortgage Reinstatement Program be used?

A: The HAF Mortgage Reinstatement Program will be used only to supplement other loss mitigation options offered by the servicer under investor requirements or where, without HAF, the homeowner would not qualify for the loss mitigation option.

Q: How much HAF Mortgage Reinstatement Program assistance can each household receive?

A: Qualified households will be eligible for up to $50,000, to be used only for the homeowner’s primary residence.

Q: Which types of properties are eligible for the HAF Mortgage Reinstatement Program?

A: Owner occupied homes in Montana, including:

• Single-family (attached or detached);
• Condominiums;
• One- to four-unit properties where the homeowner is living in one of the units as a primary residence;
• Manufactured homes permanently affixed to and taxed as real property;
• Mobile homes not permanently affixed to real property;
• Properties owned by a “natural person” (not LLP, LLC, etc.); and
• Those where ownership has been transferred to a non-incorporated, living trust.

Q: To whom will the HAF Mortgage Reinstatement Program funds be paid?

A: Funds will be paid, as applicable, to the mortgage servicer or other third-party payee authorized by the servicer, or other third party authorized to collect eligible charges in accordance with reinstatement instructions received from the payee.

Q: I have a mortgage on a rental property; can I apply for assistance to make my mortgage payments from the Homeowner Assistance Fund?

A: No, funds will be available to a homeowner with respect to qualified expenses and hardship related to the homeowner’s primary residence.

Q: Can HAF help with lot rent?

A: Yes, to prevent the creation of a lien that would place the homeowner at imminent risk of displacement.

Q: How do I apply for the Lien Prevention Grant?

A: Montana Housing has an application portal on its website where borrowers are able to apply and upload necessary documentation. You can access the application portal here.

Q: What are Lien Prevention Grants used for? How much can a borrower receive?

A: These funds are used to prevent tax foreclosure or remove/prevent creation of other liens that may cause homeowner displacement. The HAF Plan includes Lien Prevention Grants up to $10,000 per eligible household.

Q: What can be paid with Lien Prevention Grant funds?

A: Delinquent property taxes to prevent foreclosure, homeowner association and condo fees, contract for deed, and taxes. All payments are conditioned upon costs jeopardizing homeownership if left unpaid.

Q: What kind of properties qualify for Lien Prevention Grants?

A: Owner occupied homes in Montana, including:

• Single-family (attached or detached);
• Condominiums;
• One- to four-unit properties where the homeowner lives in one of the units as a primary residence;
• Manufactured homes permanently affixed to and taxed as real property;
• Mobile homes not permanently affixed to real property;
• Properties must be owned by a “natural person” (not LLP, LLC, etc.); and
• Those where ownership has been transferred to a non-incorporated, living trust.

Q: To whom will the Lien Prevention Grant funds be paid?

A: Funds will be paid, as applicable, to the third party to which they are due.

Q: Which utilities are covered by Utility Payment Assistance? How much can be provided?

A: Funds are to be used to resolve delinquent payments for utility services dating back to April 2020, and not more than three months of future utility payments. Each eligible household may receive up to $1,000. Assistance will be prioritized focusing on prevention of utility shut-off and/or restoration of utilities first, past-due months utilities second, and up to three months future utilities with remaining funds. Utilities will include electricity and home energy costs (gas, propane, wood).

Q: Which households will qualify for Utility Payment Assistance?

A: Households qualifying for the Mortgage Reinstatement Program or the Lien Prevention Grant can also apply for the Utility Payment Assistance Program. The household must be at least one installment payment in arrears on their utilities (like electric, gas, or other home energy) when assistance from other utility assistance programs is not available and, without HAF assistance, services will be lost.

Q: How do I apply for Utility Payment Assistance?

A: Montana Housing has an application portal on its website where borrowers are able to apply and upload necessary documentation. You can access the application portal here.

Q: To whom will the Utility Payment Assistance funds be paid?

A: Funds will be paid directly to the utility provider, or other applicable third-party authorized to collect eligible charges.

Q: How much assistance can be provided for Internet/Broadband Payment Assistance?

A: Each qualifying household will be eligible for up to $150. Assistance will be prioritized to focus on past months internet/broadband services, and then up to three months future services with remaining household funds.

Q: How do I apply for Internet/Broadband Payment Assistance?

A: Montana Housing has an application portal on its website where borrowers are able to apply and upload necessary documentation. You can access the application portal here.

Q: Which households qualify for Internet/Broadband Payment Assistance?

A: Households qualifying for the Mortgage Reinstatement Program or the Lien Prevention Grant can also apply for internet/broadband payment assistance. Homeowners must be at least one installment payment in arrears on their internet/broadband service with no other assistance from other internet/broadband programs available. Applicants must provide statement or notice of delinquent internet/broadband payments.

Q: To whom will the Internet/Broadband Assistance funds be paid?

A: Funds will be paid directly to the applicant.

Q: What can be paid with Home Repairs funds?

A: Home Repairs funds may assist homeowners in repairing or renovating health and safety risks within their home that may cause displacement such as trip/slip hazards, insurability repairs, accessibility and visit-ability, and other repairs that pose a hardship to homeowners. Luxury items are not allowed.

Q: How much HAF Home Repairs Program assistance can each household receive?

A: Each household will be eligible for up to $65,000 through this program to be used only for the homeowner’s primary residence.

Q: Which households will qualify for Home Repair funds?

A: General Eligibility Requirements:

• Must be listed as a borrower or co-borrower on the mortgage (co-owners are not permitted to separately apply)
• Must attest to experiencing a Financial Hardship due to COVID-19 after January 21, 2020. The attestation must describe the nature of the Financial Hardship
• Must have a combined household income equal to or less than 50% Area Median Income, as published by Montana Housing based on household size
• If applicable, the unpaid principal balance of the homeowner’s first mortgage was, at the time of origination, not greater than the Conforming Loan Limit in effect at time of origination

• Applicant must provide most current income verification
• Applicant must provide Deed of Trust for the primary mortgage

Q: How do I apply for Home Repair funds?

A: Montana Housing has an application portal on its website where borrowers are able to apply and upload necessary documentation. You can access the application portal here.

Q: To whom will the Home Repair funds be paid?

A: Funds will be paid directly to the contractor completing the home repairs.