New mortgage relief program to help Ala. homeowners impacted by COVID-19

MONTGOMERY, Ala. (WTVM) - The Alabama Housing Finance Authority has launched a mortgage relief program to help homeowners impacted by the COVID-19 pandemic.

The new program, Mortgage Assistance Alabama, is funded by the Homeownership Assistance Fund established by the U.S. Department of Treasury under the American Rescue Plan of 2021.

Applications are being accepted from homeowners who have experienced a temporary, COVID-related financial hardship after January 21, 2020.

The following assistance is available:

Past due mortgage-related expenses + 12 monthly mortgage payments
A one-time payment to a homeowner’s participating servicer to recast the loan or fill a financial gap in order to establish eligibility for a loan modification or to extinguish the lien
Total assistance per eligible homeowner may not exceed $50,000.

To be eligible, homeowners must meet the following criteria:

Financial hardship must be related to COVID-19
Total annual household income cannot exceed 150% of the area median income
Applicants must currently occupy property as primary residence
Residence must be within the state of Alabama
Eligible structures include: single-family homes (attached or detached), manufactured housing
Original principal mortgage amount on all mortgage loans on the property may not total more than the conforming loan limit

Homeowners who receive federal mortgage payment assistance from another agency are ineligible. Second homes, seasonal/vacation homes, or vacant property do not qualify.

Applications are accepted Monday - Friday. To shorten the wait time and ensure prompt handling of applications, officials say they may periodically close the application portal for a brief period to allow for processing. A portal reopening date will be posted on the homepage when those applications have been processed.

To apply and learn more, click here. Anyone with questions about the program should contact the Mortgage Assistance Alabama customer service center at 888-460-9977.