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HHF Frequently Asked Questions

Watch our video which explains the current status of Indiana’s Hardest Hit Fund.

What’s going on with Indiana’s Hardest Hit Fund (HHF)?

As of July 1, 2018, at 9 a.m. Eastern Time, Indiana’s Hardest Hit Fund reopened the HHF program to accept new applications for reinstatement-only assistance.

On June 30, 2017, we stopped accepting applications to ensure that we would have sufficient funds to fully assist the homeowners already enrolled in the program. Once we determined that we had sufficient funding to assist additional homeowners, we decided to resume accepting new applications for one-time reinstatement-only HHF assistance.

I’ve already been approved for assistance. Am I going to be affected by these changes to the program?

No. If you have already been accepted into the program, your funding will begin/continue as normal. You will not be affected by this change. This change only reopens application intake for reinstatement-only assistance starting July 1, 2018, at 9 a.m. Eastern Time.

What is HHF?

HHF stands for the Hardest Hit Fund.  Indiana is one of 19 states that received money from the U.S. Department of the Treasury to help homeowners avoid losing their homes to foreclosure.  Indiana received more than $283 million for HHF, a program that is run by Indiana Housing and Community Development Authority (IHCDA).

The purpose of the HHF program is to prevent avoidable foreclosure and help stabilize the housing market. Indiana’s HHF may provide up to $30,000 in reinstatement-only assistance for approved Indiana homeowners who have fallen behind on their mortgage payments due to an involuntary loss of employment or reduction in employment income. This brings delinquent loans current in one payment via the HHF.

What is the IFPN?

The IFPN was developed by a coalition of community organizations, housing-related agencies, government agencies, lenders and banks, to assist Indiana homeowners who are struggling with — or who are at risk of — mortgage delinquency and foreclosure.

We provide free and confidential reinstatement-only assistance to qualifying applicants and foreclosure prevention counseling to any Indiana homeowner who needs it. By clicking on the “Apply” button above or calling 1-877-GET-HOPE (1-877-438-4673), you will connect with an IFPN housing counselor who can help you understand your options to avoid foreclosure.

Is HHF for me?

The Hardest Hit Fund program (HHF) may cover one-time reinstatement-only assistance for eligible Indiana homeowners for up to $30,000. This program helps qualified homeowners catch up on their payments if they have fallen behind due to an involuntary loss of employment or reduction in employment income.

Call us at 1-877-GET-HOPE (1-877-438-4673) or click the “Apply” button above to start the application process.

Lender Dispute Resolution

In Indiana, you have the right to meet face to face with your lender to try to resolve the mortgage dispute before the foreclosure may proceed, but homeowners must request this opportunity with the court. The IFPN can assist homeowners through this process. For more information on settlement conferences, call 1-877-GET-HOPE (1-877-438-4673), or visit the Indiana Supreme Court’s website.

What requirements must I meet?

Indiana’s HHF requires that homeowners meet the following criteria:

The applicant must:

  • Be an Indiana homeowner
  • Own only one home, and currently reside in that home
  • Have past-due mortgage payments because of an involuntary employment-related financial hardship such as a previous job layoff that occurred on or after Jan. 1, 2015
  • Be able to make current mortgage payments, but unable to pay the past-due balance
  • Meet additional eligibility requirements based on income

Income Requirements*

The applicant must have:

  • A current maximum front-end housing debt-to-income ratio of 38% or below
  • An annual gross household income equal to or less than $150,000
  • An unpaid principal balance of first lien mortgage no more than $453,100

*Additional requirements may apply.

If you have questions about meeting income requirements for Indiana's Hardest Hit Fund, please contact us at 1-877-GET-HOPE (1-877-438-4673), so that we may connect you with one of our certified IFPN counselors.

Do I have to be behind on my mortgage to get assistance?

No. If your mortgage payments are current but you're behind on property taxes or homeowner association dues due to an involuntary employment-related financial hardship, you may qualify. (Assistance is not available if you do not have a mortgage.)

When should I apply?

Homeowners should apply as soon as they have past-due mortgage payments resulting from an involuntary employment-related financial hardship. The sooner you apply, the better.

You will need the following items to apply*:

  • Most recent mortgage statement and/or reinstatement letter
  • Most recent recorded mortgage
  • Current tax and insurance statements, if non-escrowed
  • Last 30 days of pay stubs for all employment and income sources
  • Most recent year-to-date Profit and Loss statement, if self-employed
  • Last one (1) month of all bank statements
  • Previous year’s tax return and W-2s/1099s, with all schedules
  • Copy of unemployment eligibility and any other relevant information needed to establish eligibility
  • Documentation of any other public benefits such as SSI

*Additional documentation may be required.

How do I apply?

To apply for the Hardest Hit Fund Program (HHF), click the “Apply” button above, and complete the four-step online application. The more information you share with us, the faster and more accurately we can assist you.

Online Application Process

  • Step 1: Basic homeowner information
  • Step 2: Property and lender information
  • Step 3: Financial information
  • Step 4: Hardship letter

The online application process allows us to match you with the proper counseling agency. The counselor will review your information, determine your eligibility for the HHF and/or other programs and assist you through the process, all at no cost to you. You may also get connected with a counseling agency by calling 1-877-GET-HOPE (1-877-438-4673).

If I’m approved for HHF, will I get a check?

No, your one-time reinstatement-only HHF assistance is paid directly to your mortgage lender on your behalf.

Will I have to pay back the assistance I receive from Indiana’s HHF?

Although HHF is a loan, you do not have to make loan payments or pay interest. After 10 years, the loan is completely forgiven. You only have to pay money back if you sell your home for a profit before the 10 years passes, and you only have to pay back as much as you can with the profit you make from the sale. The rest is forgiven. For example, if you received $10,000 in HHF assistance, and the next year you sell your house and make $10,000 in profit, you would have to pay back the entire $10,000 HHF loan. But if you only made $2,000 in profit, you would pay back $2,000 and the other $8,000 would be forgiven. If you broke even or lost money on the sale, all $10,000 would be forgiven. Also, after 5 years 20% of the loan is automatically forgiven each year. The longer you keep your home, the less you might have to pay back.

Term (in years from closing date) Amount Due Back to IHCDA
Years 1 through 5 100%
Year 6 80%
Year 7 60%
Year 8 40%
Year 9 20%
Year 10 0%

The HHF loan is not forgivable by reason of death of the borrower. However, because it is a non-recourse loan, the borrower’s estate has no personal liability for the debt, and IHCDA is limited to collecting from the available proceeds after sale of the property.

Can I refinance my home after receiving HHF assistance?

Yes. HHF does not prevent you from refinancing your home. However, you should be aware of the following HHF policy:

  1. “NO CASH OUT” REFINANCE: If you refinance your home ONLY to get better loan terms than your current mortgage offers (such as a lower interest rate or payment), then IHCDA will sign an agreement with your lender to have the HHF loan put back into second place behind your refinanced loan (this is called a Subordination Agreement).
  2. “CASH OUT” or “LINE OF CREDIT” REFINANCE: If you refinance your home in order to receive money (“cash out” some or all of the value of your home), then you must pay back the amount of HHF assistance that you received; OR, if you do not wish to pay back HHF, then IHCDA will not sign a Subordination Agreement and the HHF loan will be placed ahead of the refinanced loan (most lenders will not agree to refinance your loan without a Subordination Agreement).

PLEASE PROVIDE THIS INFORMATION TO YOUR POTENTIAL REFINANCE LENDER BEFORE YOU SIGN ANY NEW LOAN DOCUMENTS. The new lender should understand what this policy means and what effect it would have on their refinance loan. If you have additional questions, please contact the agency that assisted in getting you the HHF assistance.

Is my servicer/bank participating?

More than 300 lenders participate in Indiana’s Hardest Hit Fund. To see if your mortgage lender is part of our program, view the participating lender/servicer list.

Don't see your lender listed? Call us at 1-877-GET-HOPE (1-877-438-4673) to apply for assistance, and contact our servicer liaison at HHF@ihcda.in.gov to request that your lender be added.

What if I don’t qualify?

Other foreclosure prevention assistance may be available for applicants who do not meet these qualifications. Please complete the application and someone will contact you.

Where can I find out more about HHF?

To find out more, call us at 1-877-GET-HOPE (1-877-438-4673).