Behind on Your Mortgage and Need Home Repairs

Last updated: May 19, 2026

You may be choosing between a past-due mortgage and a repair you cannot safely ignore: a bad roof, no heat, unsafe wiring, broken plumbing, a failed septic system, or an accessibility problem that keeps someone trapped at home.

The first goal is to stop the situation from getting worse

When you are behind on a mortgage and the house needs repairs, the wrong first move can make both problems worse. Paying a contractor with mortgage money can lead to foreclosure. Ignoring a dangerous repair can lead to injury, code action, insurance trouble, or a home that is harder to save.

Start with two calls. First, call your mortgage servicer, the company listed on your statement. Ask for the loss mitigation department. Second, contact a HUD-approved housing counselor. The CFPB mortgage help page says foreclosure help from HUD-approved housing counselors is free, and HUD lists approved counseling agencies through its HUD counselor search. HUD also says homeowners can call 800-569-4287 to find a housing counseling agency.

A counselor cannot promise to save the home. A counselor can help you understand the mortgage options, organize paperwork, prepare questions for the servicer, and avoid foreclosure rescue scams.

Mortgage help options to ask about

Mortgage help depends on your loan type, investor, servicer rules, state foreclosure law, income, hardship, and timing. Ask for the loss mitigation department and the list of options that may apply to your loan.

Common options can include a repayment plan, forbearance, loan modification, partial claim for some government-backed loans, deferral of missed payments, or a plan to sell or leave without foreclosure. These options are not the same. Forbearance usually pauses or lowers payments for a time, but the missed amount still has to be handled later.

HUD’s foreclosure help page points homeowners to lender contact, HUD-approved counseling, and FHA loss mitigation information. If your servicer denies a loan modification and received your complete loss mitigation application at least 90 days before a scheduled foreclosure sale, the CFPB says you may have appeal rights; check the CFPB appeal rules.

Homeowner Assistance Fund may still matter in some places

The Homeowner Assistance Fund, often called HAF, was created for homeowners financially affected by COVID-19. The U.S. Treasury says HAF funds went to states, territories, and tribes to help prevent mortgage delinquencies, defaults, foreclosures, loss of utilities or home energy service, and displacement. The CFPB says HAF is scheduled to end in September 2026 or when money is used up, whichever comes first, and that each state program may still have different availability. Check HAF state help and the Treasury HAF page before assuming it is closed or open where you live.

HAF is usually not a general repair grant. It may help with mortgage payments, taxes, insurance, utilities, homeowner association costs, or other housing-related costs if your state or tribal program allows it and still has funds. If it is closed, ask about housing finance agency, local foreclosure prevention, or legal aid referrals.

Repair help that may be worth checking

Repair help is usually local. The name on the money may be federal, but the intake office may be a city housing department, county community development office, tribal housing office, community action agency, weatherization provider, Area Agency on Aging, or nonprofit. The rules can change by address.

Do not ask only, “Do you have grants?” Ask for the exact repair problem. Programs may be called owner-occupied rehab, emergency repair, minor repair, critical repair, weatherization, barrier removal, code correction, deferred loan, forgivable loan, or volunteer repair.

USDA Section 504 for rural homeowners

USDA Rural Development’s USDA repair program provides loans to very-low-income homeowners to repair, improve, or modernize homes, and grants to elderly very-low-income homeowners to remove health and safety hazards. USDA’s current fact sheet lists a maximum loan of $40,000, a maximum grant of $10,000, a disaster-related grant maximum of $15,000 in a presidentially declared disaster area, and combined loan and grant help of up to $50,000. The loan term is 20 years. You can also read our USDA 504 guide.

USDA is not for every address. The home must be in an eligible rural area, and income rules are tied to the area. Ask whether mortgage delinquency, title, taxes, insurance, or occupancy will affect approval.

Weatherization and energy-related repair

The Department of Energy says households at or below 200% of the federal poverty income guidelines, or households receiving Supplemental Security Income, are considered eligible under DOE weatherization guidelines. Apply through your state or local provider using DOE’s weatherization application page. Weatherization can reduce energy costs and improve safety, but it is not a promise to replace a whole roof, rebuild a room, or fix every code problem. For more background, see our weatherization guide.

LIHEAP is separate but often handled by the same community action network. HHS says LIHEAP can help with home energy bills, energy crises, weatherization, and minor energy-related home repairs. Check the LIHEAP fact sheet, then contact your state, tribe, or local agency. If the urgent repair is a furnace, unsafe heat, cooling crisis, utility shutoff, or energy-related hazard, ask about both LIHEAP and weatherization.

Local rehab funded by HUD programs

Many city and county repair programs use HUD-related funds, but you apply locally. HUD Exchange says HOME funds may be used for homeowner rehabilitation of owner-occupied units under local written standards. CDBG rules also allow many types of housing rehabilitation, and local grantees can design emergency repair, spot rehab, or full rehab programs. Read the official HOME rehab rules and HUD’s CDBG housing rehab guide for the federal background, but call your city or county for the actual application.

Local programs may require inspection, proof of ownership and occupancy, income proof, tax status, mortgage status, insurance, bids, and permission to record a lien. Some pay the contractor directly. Some use a deferred loan forgiven only if you stay in the home for a set time.

Nonprofit repair help

Nonprofits can be helpful when a grant office is closed or the repair is small enough for a volunteer or local affiliate program. Habitat for Humanity describes its Habitat repairs as home preservation work that may use volunteer labor, donated materials, and affordable loans depending on the affiliate. Rebuilding Together describes its work as safe and healthy housing through local affiliates; start at Rebuilding Together and look for your local office.

Nonprofits set their own application windows, priority groups, and service areas. If your mortgage is past due, say so early. The nonprofit may still help, or it may refer you to counseling first.

Older adults, disability needs, and veterans

If the repair is about safe access, bathing, wheelchair entry, fall risk, or staying out of a nursing home, call the local aging and disability network. The Administration for Community Living says Area Agencies on Aging are local or regional agencies that address older adults’ needs; use the Eldercare Locator to find the office. Medicaid home and community-based services may include environmental modifications in some states and waivers, but rules are state-specific; check Medicaid HCBS waivers and your state Medicaid office.

Veterans with qualifying service-connected disabilities should check VA adapted housing grants. VA lists FY 2026 maximums of $126,526 for Specially Adapted Housing and $25,350 for Special Home Adaptation. Start at VA housing grants. These are disability-based programs, not general repair money.

Disaster damage changes the path

If the repair is from a declared disaster, the path may include insurance, FEMA, SBA, state disaster recovery, local long-term recovery groups, and later CDBG-DR programs. FEMA’s Individuals and Households Program can help eligible households with uninsured or under-insured necessary expenses and serious needs, but FEMA says it is not a substitute for insurance and does not cover all losses. Start with FEMA IHP. SBA says homeowners may apply for physical disaster loans up to $500,000 to repair or replace a primary residence, and homeowners or renters may borrow up to $100,000 for personal property, if eligible; see SBA disaster loans. Our FEMA repair guide explains the basic disaster-assistance path.

Documents to gather before you call

You do not need every paper before making the first call. But missing proof can pause an application even when the repair is serious.

Do not start repair work too soon

Many repair programs will not pay for work that started before approval. Some require their own inspection, environmental review, lead review, contractor list, bids, or signed scope of work. If your home was built before 1978, EPA’s Renovation, Repair and Painting rule can require certified firms and lead-safe work practices when paid renovation disturbs painted surfaces. EPA recommends using a lead-safe contractor for pre-1978 homes.

Get written estimates, but tell contractors you are applying for assistance and cannot sign until the program approves the scope. For more detail, see our roof repair help guide and repair grants overview.

Phone scripts you can use

What if you are denied, delayed, or waitlisted?

Ask for the reason in writing. A denial for missing documents is different from a denial because the repair is not covered. A waitlist is different from a closed program. A mortgage denial is different from a repair-program denial.

• If the mortgage servicer says no: ask for the written denial, the exact reason, whether appeal rights apply, and whether another option is available. Contact a HUD-approved counselor and legal aid if a sale date or court deadline exists.
• If a repair program says no: ask whether the address is outside the service area, the repair is not covered, funds are gone, income is too high, title is unclear, taxes are delinquent, or work started too soon.
• If you are waitlisted: ask how emergency cases are handled, whether a code notice or doctor letter changes priority, and whether another agency has faster help.
• If documents are the problem: ask if a counselor, legal aid office, Area Agency on Aging, veterans office, or community action worker can help gather them.

For local referrals, United Way’s 211 housing help page says 211 can help people look for options for mortgage, utility, and housing expenses. For legal help, the Legal Services Corporation lets people search for local legal aid. Legal aid is especially important if you received foreclosure court papers, a tax sale notice, a deed transfer offer, a contractor lien, or a notice you do not understand.

Scams and risky financing to avoid

Be careful with repair financing when you are already behind. A home equity loan, contractor financing, property-assessed clean energy loan, high-cost personal loan, or cash-out refinance can make sense for some homeowners, but it can also create new payments, fees, liens, or foreclosure risk. Do not sign a loan just because the repair is urgent. Ask a housing counselor to look at the whole budget first.

The FTC also warns that home repair scammers can overcharge, do shoddy work, damage the home, or take money without doing the job. Before hiring, check licenses and insurance, get written estimates, use a written contract, and avoid cash or wire payments. Review the FTC’s home repair scams guidance.

FAQ

Should I pay for repairs or the mortgage first?

If there is immediate danger, handle safety first. For non-emergency repairs, call the mortgage servicer and a HUD-approved counselor before using mortgage money for repairs. Missing more mortgage payments can move the home closer to foreclosure.

Can I get a grant if I am behind on my mortgage?

Maybe, but it depends on the program. Some repair programs require the mortgage, taxes, and insurance to be current. Others may still consider emergency repairs or may refer you to foreclosure counseling first. Ask the program directly before assuming you are disqualified.

Will a housing counselor pay for repairs?

Usually no. A housing counselor helps with mortgage options, budgeting, paperwork, and referrals. They may know local repair programs, but they are not usually the repair funder.

Can HAF pay for home repairs?

HAF is mainly for mortgage and housing-related costs tied to COVID-19 hardship, and each state, territory, or tribal program set its own rules. As of May 2026, HAF is scheduled to end in September 2026 or when funds are used up. Check your state program before relying on it.

What if my home is in foreclosure but the repair is urgent?

Call a HUD-approved housing counselor and legal aid right away, especially if there is a sale date or court paper. Also call the local repair or emergency agency for the safety issue. Do not sign repair financing, deed paperwork, or contractor liens until someone independent reviews the risk.

Can a contractor help me get a grant?

A contractor can give an estimate, but be careful if a contractor promises grant approval, asks for money upfront to apply, or pressures you to sign a loan. Real programs usually use their own application, inspection, and approval process.