Frequently Asked Questions

The American Rescue Plan Act passed by Congress in March of 2021 provided Illinois with funds to help homeowners at risk of default, foreclosure, and displacement as a result of the COVID-19 pandemic. Illinois homeowners experiencing financial hardship associated with the COVID-19 pandemic can apply for a housing assistance grant of up to $60,000. The program is administered by the Illinois Housing Development Authority (IHDA). 

Assistance will be paid directly to the mortgagor’s loan servicer, taxing body, or other approved entity on behalf of the homeowner. Homeowners that have been disproportionately impacted by the pandemic will be prioritized in the distribution of funds.

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The ILHAF program is no longer accepting applications as of Wednesday, Nov. 1, 2023.

The application period has closed.

Applicants are strongly encouraged to make the following preparations before they apply for ILHAF:

• Get Informed: Homeowners are strongly encouraged to review all ILHAF materials to learn and educate themselves about the program.
• Explore Your Options: Homeowners are required to contact their mortgage servicer or a HUD-certified housing counseling agency to discuss loss mitigation options before they are eligible to receive assistance. Schedule a meeting with a HUD-approved housing counseling agency as soon as possible. 
• Get Started: review the Acceptable Documentation list and be prepared with all required documents when the application opens in Nov. 2022. 

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Applications in process, but not completed at the time of closing, will not be accepted.

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Applications submitted prior to Wednesday, Nov. 1 will be reviewed for approval.

An application submission does not guarantee financial assistance.

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Yes. We have housing assistance agency partners who can assist you with your application. All services are free of charge. Partners can be found at  https://www.illinoishousinghelp.org/ilhaf#map.

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The Program will accept applications from eligible, Illinois homeowners who meet the following criteria:

• Homeowner owns and occupies the property as their primary residence
• Property is in Illinois

• Properties that are eligible for ILHAF are dwellings located in Illinois that are one- to four-unit residential properties, specifically: Single-family/row home (attached or detached properties); condominium units; cooperatives; and manufactured/mobile homes.

• Homeowner has experienced a financial hardship as a result of the COVID-19 pandemic since January 21, 2020 and is seeking assistance with past due mortgage and housing-related expenses. This can include a qualified financial hardship that began before January 21, 2020, and continued after that date.
• Homeowner is past due on the mortgage payments and/or housing-related expenses for which they are requesting ILHAF assistance.
• Household income is equal to or less than 150% area median income (AMI). Click here to determine your income eligibility for ILHAF.
• Homeowner’s first mortgage is a conforming loan and meets the federal limits for the year in which the loan was taken.
• Homeowner cannot receive the same assistance for mortgage payment, mortgage reinstatement, property charges, property taxes, etc. from another federal, state, local, nonprofit, or tribal source.

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Homeowners whose household income is equal to or less than 150% of the Area Median Income (“AMI”) and who have experienced a financial hardship directly or indirectly related to COVID-19 that began, continued, or worsened after January 21, 2020, are eligible to apply.

Also, federal guidelines require that mortgage assistance be used for homeowners who have an affordable and sustainable mortgage payment.  Affordability is measured by comparing the monthly amount paid to the mortgage servicer and dividing it by the total gross monthly household income. If the result is below 42%, the mortgage is considered affordable, if the result is greater than 42%, the mortgage is deemed to be not affordable. 

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The ILHAF will provide homeowners who were affected by COVID-19 with several types of support: 

• financial support to address delinquent housing payments, including mortgage payments, property taxes, homeowner association/condo/coop fees, manufactured home loans and if applicable, associated monthly lot rents;
• access to a Call Center and case managers who can help you find out about any mortgage relief you may be entitled to and how it will affect your future housing payments; and 
• referrals to professional housing counselors or legal service providers who are experts in this field.  

All assistance is free of charge. In all cases, the goal of ILHAF is to help as many Illinoisans as possible stay in their homes.

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• Mortgage Reinstatement: Provides funds to bring a first mortgage current and to pay other housing-related costs, such as taxes and insurance, if included in the mortgage payment, related to a period of forbearance, delinquency, or up to the maximum per household assistance cap of $60,000. Note: ILHAF does not cover payments for principal reductions on completed loan modifications or partial claims. ILHAF also does not cover balloon payments.
• Forward Mortgage Payment: Provides forward payment assistance for up to three months or until the maximum per household assistance cap is met. 
• Property Charges: Provides funds for past due property taxes, reverse mortgage insurance premiums, homeowner association (HOA) fees, condominium fees, or common charges that put ownership of the property at-risk including mortgage foreclosures and displacement of homeowners. 

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Homeowners who are unable to afford their ongoing housing payment obligations can elect to receive up to three months of future mortgage payments in their grant application. To be eligible for this assistance, you must also apply for delinquent mortgage assistance.  The total amount of assistance provided to any applicant through ILHAF may not exceed $60,000.

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Eligible applicants may apply for the amount that they are behind on mortgage and non-mortgage housing costs and/or mortgage forward payments up to a maximum of $60,000

A grant award must fully satisfy a delinquency category to be awarded. If, therefore, a homeowner is behind $55,000 on their mortgage and $7,000 in back due co-op fees, ILHAF can award the full $55,000 in back due mortgage payments but cannot award any amount on the co-op fees, because a $5,000 payment would not fully satisfy the delinquency. Where a homeowner is more than $60,000 behind on mortgage payments, ILHAF can still help if the homeowner can bring the difference of funds to the table through the process described in the FAQ “What if I am behind on my mortgage more than $60,000, can ILHAF help me?”.

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Yes, homeowners who do not have a mortgage or are current on their mortgage payments but are behind on their property taxes and/or homeowner/condo/coop association fees may apply for assistance. 

In order to apply for property tax assistance, the property tax payment must be due prior to the date of application submission.  Only property taxes that are delinquent for tax years 2019, 2020, 2021, and 2022 are eligible for assistance.  New for ILHAF 2.0, earlier delinquencies from tax year 2018 and earlier will no longer make your application ineligible for property tax assistance.  You can now also receive assistance for any property taxes from tax years 2019 through 2022 if they have been sold and are in redemption.

In order to apply for the homeowner/condo/coop association assistance, the fees and dues for the association must be past due prior to the date of your application.

If your mortgage is current, however, your application will not be eligible for assistance with past due second/third mortgage(s), property insurance statement, property flood insurance or manufactured/mobile home lot rent.

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A delinquent housing payment is a payment that is past due.

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If the amount necessary to reinstate your mortgage exceeds $60,000, please submit an application.  When we review your application we will provide an opportunity to close the gap between our cap and the delinquency. . When providing this opportunity, we will direct you to  contact a participating legal aid organization to evaluate eligibility. All services are free of charge. The legal aid organization will walk you through the process of submitting your “gap” funds to reinstate the difference above what ILHAF may fund. If “gap” funds are not available, you will be ineligible for mortgage assistance funding from ILHAF. This process is only available for first mortgage assistance.

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Yes. Beginning July 1, we are expanding ILHAF to assist applicants with past due Contract for Deeds, Land Contracts or Installment Sales Contracts. An applicant must owe less than 80 percent of the original purchase price of the property to qualify and must meet all other eligibility criteria. Note, if you are in eviction court, visit illinoishousinghelp.org/cbrap to apply and learn more about the Court-Based Rental Assistance Program.

In order to qualify for assistance with delinquent manufactured/mobile home lot rent payments through the ILHAF program, you must also have a mortgage or home loan that is past due at the time of application.

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A complete list of acceptable documents is available here.  

For all applications:

• Proof of ownership
• Proof of address/residency
• Proof of identity for the applicant and any co-borrowers
• Proof of income for each adult member of the household
• Certificate of Housing Counseling OR Letter from mortgage servicer detailing loss mitigation efforts

As applicable to requested assistance: 

• Mortgage statement dated with 30 days of application (required for all files unless applying for tax or association assistance only)
• Mobile home loan statement (if applicable)
• Second and third mortgage statements (if applicable)
• Property tax statement (required when applying for tax assistance)
• Property Insurance statement (required when applying for property insurance assistance)
• Property flood insurance statement (required when applying for flood insurance assistance)
• Homeowner Association/Condo Association/Co-Op Statement/Lot Rent Statement (required when applying for association assistance)
• Lot lease (required when applying for lot lease assistance)

Conditional documents for special circumstances (submit copies of any that have been received): 

• Notice of default from servicer
• Court documents for foreclosure proceedings
• Notification about an upcoming property tax sale
• Notification about an upcoming foreclosure sale
• Approval from a bankruptcy trustee for IHDA to communicate with creditors
• Bankruptcy discharge notice
• Forbearance agreement 

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No.  If you have received housing counseling from a HUD Approved counselor since January 1, 2022, you do not have to see a counselor again.  Please upload your certificate with your application. 

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No, you are required to explore loss mitigation options with your servicer as a condition of receiving an ILHAF grant. There is no guarantee that you will receive ILHAF funds. Furthermore, ILHAF funds are not meant to replace servicer modification offers (also known as loss mitigation). These options are time-sensitive and expire if they are not taken advantage of promptly. You should not delay speaking with your servicer about modification options. ILHAF is available only as an alternative when a modification with your servicer is not affordable based on our calculation. Failing to explore modification options with your servicer can increase your delinquency and may make it more difficult for you to bring your mortgage current. There is no guarantee that you will be approved for ILHAF funds and failing to communicate with your servicer about modification options could result in you not receiving a modification and not receiving ILHAF funds.

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It depends on the new terms and if you can afford your new monthly payments. If you are concerned about your ability to pay your monthly payments, you should apply for ILHAF and make sure that you upload your loan modification offer. The ILHAF program will supplement, and not replace, loss mitigation available to you from your mortgage servicer. If you have been offered a loss mitigation option that reinstates the loan to good standing, you will be ineligible for ILHAF regardless of whether you accept the loss mitigation offer or not unless the option is unfavorable because it increases your monthly payment AND results in a house-to-income (HTI) ratio greater than 42 percent. For these cases, ILHAF staff will review your application for eligibility. If eligible, ILHAF can provide reinstatement assistance of up to $60,000. 

If the loss mitigation option is unfavorable to you because it increases your monthly payment BUT your HTI payment remains less than 42 percent, you will be ineligible for ILHAF. For purposes of calculating HTI, ILHAF will consider your current income. You may need to provide additional information to verify your current income if it has changed since the time you applied. 

ILHAF provides case management support to homeowners and the case managers can assist you with understanding your options that can allow you to remain in your home.  Please contact a housing assistance agency partner for assistance  https://www.illinoishousinghelp.org/ilhaf#map.

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You may still be eligible for an ILHAF grant if the loss mitigation option was unfavorable to you because it increased your monthly payment AND resulted in an HTI payment greater than 42 percent. ILHAF staff will review your loss mitigation offer letter and your application. If eligible, ILHAF can provide reinstatement assistance of up to $60,000.

If the loss mitigation offered would have resulted in a monthly payment less than 42% HTI, you will not be eligible for the ILHAF grant.  The ILHAF program can supplement, but not replace, loss mitigation available to you from your mortgage servicer. If you have been offered a loss mitigation option that reinstates the loan to good standing with an affordable monthly payment, you will be ineligible for ILHAF regardless of whether you accept the loss mitigation offer or not.

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Yes. If you are currently in foreclosure, or in another type of legal proceeding, you may still apply for assistance under the ILHAF. Homeowners who are in active legal proceedings are encouraged to apply as soon as the program opens, and ILHAF can also assist in connecting you to free legal services if you are not already represented by an attorney.  A list of participating legal aids can be found here.  All services are free of charge.

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An acceptable loss mitigation letter should be dated after January 1, 2022 and include:

• Homeowner name
• Property address
• Whether you have been approved or denied for loss mitigation
• If you were approved for loss mitigation, what type of loss mitiation assistance you were approved for
• If you were approved for a modification or repayment plan, the terms of the offer

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No. The financial assistance will be structured as a grant and no repayment will be required.

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Applicants can check on the status of their application by logging into their ILHAF account at ilhaf.ihda.org. Your status will be listed on your application dashboard and is updated in real time.

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You will see these possible status terms during the application process:

• In Review: Your application has been assigned to an ILHAF reviewer. Applicants can expect this stage to take up to 120 days from submission.
• Finalizing Determination: Confirming the final determination, which includes the grant assistance amount or the denial reason.
• More Info Needed: Instructions Sent to Email: Your application was missing one or more documents required to complete the review. Please check your email for a notification that explains what is needed, and directions on uploading the documentation to your application. 
• Contact a HUD Approved Housing Counselor: There are two reasons why you may need to contact a HUD-approved housing counselor. 

1. You need to provide documentation that confirms you have explored loss mitigation options. You may upload one of the following documents:
   — A certificate from a HUD-approved housing counselor. Please contact a HUD-certified housing counseling agency to obtain a certificate and complete the application. 
   — A letter from your mortgage servicer detailing your loss mitigation options.
   — A letter from a legal aid organization detailing the assistance received, or that you are currently receiving.
2. This status may mean that we have reviewed your application and have determined your mortgage payment is not affordable. Please meet with a HUD-certified housing counseling agency for an additional review of your income and expenses. 
   — Mortgage affordability is determined by comparing your monthly payment to your servicer as a percentage of the amount of your household monthly gross income. 
   — Though meeting with a counselor at this stage is required for further review, it does not guarantee approval for assistance.

• Referred to Legal Aid: This status is available if you are eligible for the ILHAF Over the Cap process. You will receive an email communication with directions on next steps.
• Waiting for Mortgage Servicer Response: IHDA has completed a review of your application and has sent it to your servicer for confirmation of the amount owed and other details. Applicants can expect to remain in this status for up to six weeks while awaiting a response from your servicer.

• Reviewing Servicer Response: IHDA staff are reviewing information provided to us from your mortgage servicer and confirming they can accept payment. 
• Quality Control Review: Your application has been randomly selected for an additional review to guarantee our reviewers are following program guidelines. Not all applications will go through this process.
• Approved: Your application has been pre-approved for funding. This is not a guarantee of funding. However, once approval is confirmed, you will receive a payment confirmation email within 14 days. The email will include the date IHDA sent payment(s) and the amount of the payment(s) made directly to your mortgage servicer, taxing body, and/or other approved entity.
• Paid:  Your application has been approved and we have sent payment on your behalf to your mortgage servicer, taxing body and/or other approved vendors.  Please note, all servicers and vendors will have their own timeline to apply funds.  Please contact them directly for additional information.
• Denied: Your application did not meet eligibility criteria and has been denied. If you have any questions about the reason for denial, please contact ILHAF customer relations at (866) 454-3571 and press option 3.  You can also email hafquestions@ihda.org with your application ID number, name and address and a representative will respond accordingly.
• Ready to Be Reviewed: Your application has been received but has not been assigned to a reviewer yet.

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Reviews are currently expected to take up to 120 days before a determination is made. If you have received a court summons or tax sale notice, please upload this documentation to your application using the “Add Documents” button. If you have a pending foreclosure or tax sale, please contact Customer Relations at HAFQuestions@ihda.org to request an expedited review. Payment timelines will be dependent on the response time of your mortgage servicer, among other factors. Please check your ILHAF account for live application status updates.

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Subject to Federal guidance, if your mortgage is backed by Fannie Mae or Freddie Mac, your mortgage servicer is required to suspend foreclosure activities for up to 60 days after being notified that you have applied for ILHAF assistance.

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Applicants should log into their ILHAF account at ilhaf.ihda.org and select the “Add Documents” button. Cell phone users may need to scroll right or rotate their phone to view the button. After adding one or more documents, you must select “Save All Documents”. 

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If you feel the decision regarding your application is incorrect, you have the opportunity to request your application be reconsidered. A request for reconsideration should be submitted within 14 days of denial. To file a request for reconsideration, please follow one of the following two options: 

1. Email requests should be made to HAFReconsideration@ihda.org with the following information:

• Application ID in the subject line (i.e. ILHAF Reconsideration Request – Application # 123456) 
• Reason for Reconsideration: A full and specific statement as to the reason why the decision is alleged to be an error or incorrect
• Name, address, phone number and email address of the applicant 

1. Call our customer service line at (866) IL-HELP1, press option 3 for ILHAF assistance and then option 2 for reconsiderations. A customer service representative will prepare an email to HAFReconsideration@ihda.org on your behalf. 

Note - Making a request for reconsideration does not guarantee a reversal of the initial decision.

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There are a few different email proxies for ILHAF that are designed to reach the correct team as quickly and efficiently as possible. Please follow the prompts below for email correspondence:

For applicants who have been denied but seek reconsideration:

• Email proxy: HAFReconsideration@ihda.org
• Subject line: HAF Request for Reconsideration [include application number]

For applicants who have been denied because of a loss mitigation option, but seek reconsideration:

• Email proxy: HAFReconsideration@ihda.org
• Subject line: HAF Request for Reconsideration – Loss Mitigation – [include application number]

For applicants who have been offered a loss mitigation option, but the terms are not sustainable to the borrower, and the application is pending a decision:

• Email proxy: HAFQuestions@ihda.org
• Subject line: Loss Mitigation – [include application number]

For applicants whose delinquency exceeds the $30,000 cap, but borrower has means to provide additional funds:

• Email proxy: HAFQuestions@ihda.org
• Subject line: Over the Cap [include application number]

For all other applicant inquiries:

• Email proxy: HAFQuestions@ihda.org
• Subject line: [indicate issue or question topic] [include application number]

Yes, however, homeowners cannot receive mortgage assistance from more than one source during the same period. Duplication of benefits is expressly prohibited.

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If you also need utility assistance, please contact the Department of Commerce & Economic Opportunity (“DCEO”) for information on eligibility and how to apply for utility assistance funds through their Low Income Home Energy Assistance Program (LIHEAP).

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Yes, homeowners that received a grant under ILHAF are able to apply again. Please review the eligibility criteria prior to applying and submit a new application. A new housing counseling certificate or loss mitigation letter is not required if your documents are dated calendar year 2022 or later. The maximum HAF assistance to any household is capped at $60,000 cumulative total assistance across all application rounds.

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Yes, homeowners that were denied a grant under round one of ILHAF are able to apply again. Please review the eligibility criteria prior to applying and submit a new application. A new housing counseling certificate or loss mitigation letter is not required if your documents are dated calendar year 2022 or later.

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If your application is pending, IHDA will automatically review it under the new $60,000 cap. You do not need to do anything, but we may be in touch to get additional information or documents from you.

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IHDA will automatically review requests for reconsideration under the new $60,000 cap.

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Although you may apply for round 2 of HAF while the current application window is open, IHDA will close your request for reconsideration upon receipt of a new application. Since pending request for reconsideration will be reviewed under the new $60,000 cap, you should review the eligibility criteria and consider whether to proceed with a new application or await the outcome of your request for reconsideration.

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