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HHF Frequently Asked Questions

Watch our video about Indiana’s Hardest Hit Fund, a program that provides one-time mortgage reinstatement-only assistance of up to $30,000 to those who qualify.

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

Applications are no longer being accepted for mortgage assistance from Indiana’s Hardest Hit Fund. The deadline to apply was May 3, 2021. Additional COVID-19 housing and utility resources can be found at: www.in.gov/ihcda/coronavirus.htm.

If you’re an Indiana homeowner struggling with your mortgage, reach out to your lender directly. You also can sign up for our email list to be informed if any surplus funding becomes available.

What if I still need help with my mortgage?

If you’re an Indiana homeowner struggling with your mortgage, reach out to your lender directly. Additional COVID-19 housing and utility resources can be found at: www.in.gov/ihcda/coronavirus.htm. You also can sign up for our email list to be informed if any surplus funding becomes available.

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

No. If you have already been accepted into the program, your funding will begin/continue as normal. You will not be affected by the application deadline. We are only closing our application portal to new applicants starting May 3, 2021, at 11:59 p.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 provided up to six months or $30,000 in mortgage payment and/or reinstatement assistance to approved homeowners who had experienced an involuntary employment-related financial hardship due to:

  • an involuntary loss of employement or reduction in employment income
  • a reduction in household income due to death of a spouse
  • loss of employment income related to medical procedures or emergencies

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.

Is HHF for me?

Applications are no longer being accepted for mortgage assistance from Indiana’s Hardest Hit Fund. The deadline to apply was May 3, 2021. Additional COVID-19 housing and utility resources can be found at: www.in.gov/ihcda/coronavirus.htm.

Mortgage Payment Assistance

HHF helps qualified homeowners who have fallen behind on their mortgage payments due to an involuntary financial hardship. Hardships that may qualify homeowners for assistance include, but are not limited to:

  1. an involuntary loss of employment or reduction in employment income
  2. a reduction in household income due to death of a spouse
  3. loss of employment income related to medical procedures or emergencies

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. Visit the Indiana Supreme Court’s website.

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

No, your 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.

What if I don’t qualify?

Other foreclosure prevention assistance may be available for applicants who do not meet the program’s qualifications.

Additional COVID-19 housing and utility resources can be found at: www.in.gov/ihcda/coronavirus.htm.

If you’re an Indiana homeowner struggling with your mortgage, reach out to your lender directly. You also can sign up for our email list to be informed if any surplus funding becomes available.