Mortgage Relief Programs in 2026

Mortgage relief for homeowners looks very different than it did in 2021. The special refinance programs for borrowers with little equity are paused, and the pandemic aid funds have closed. This page explains what is left.

Check your refinance eligibility. Start here (Oct 28th, 2026)

Freddie Mac recorded its lowest 30-year fixed rate ever, 2.65%, in the week of January 7, 2021. Rates are much higher now. See today’s rates before you decide whether a refinance makes sense.

Freddie Mac has tracked rates since 1971.

But what about those who owe more than their home is worth and can’t refinance? What can they do? Up until 2018, there was HARP.

Two programs were built to take its place, but both are paused.

Check your refinance eligibility. Start here (Oct 28th, 2026)

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TIP: Home values rose sharply from 2020 to 2022, so you may have more equity than you think. Rates are higher now, so a refinance helps most if your current rate is above today’s rates. Check your refinance eligibility. Start here.

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Standard refinances generally require at least 5% equity, and more for some loans. If a homeowner is “upside-down” with a mortgage, the borrowers would either have to pay down the mortgage to an acceptable level or give up trying altogether.

FHA, VA and USDA streamline refinances may work with little or even no home equity. Fannie Mae’s and Freddie Mac’s special programs for high loan-to-value borrowers, HIRO and FMERR, are paused.

Check your refinance eligibility. Start here (Oct 28th, 2026)

Mortgage relief and refinance options for homeowners

Home values rose sharply from 2020 to 2022, and many homeowners built equity they did not have before. But mortgage rates are higher now than they were in 2021, so the savings from a refinance are smaller or gone.

A refinance can still help if your current rate is above today’s rates. If you are struggling to keep up with payments, call your servicer first and ask about your options.

Many homeowners may be able to refinance without a special program like HIRO or FMERR. Check your refinance eligibility to find out whether you could get a lower rate or a smaller monthly payment.

Check your refinance eligibility. Start here (Oct 28th, 2026)

Mortgage Refinance Relief in 2026

The HARP program (Home Affordable Refinance Program) was live between April 2009 and the end of 2018. It helped more than 3.5 million borrowers successfully refinance their Fannie or Freddie mortgages.

The Fannie Mae High LTV Refinance Option (HIRO) and the Freddie Mac Enhanced Relief Refinance (FMERR) program were introduced in 2018 to offer similar refinance relief to HARP. Both have been paused since 2021.

Rates in 2021 compared with now

Rates fell sharply after these programs opened. The 30-year fixed rate hit its lowest level ever, 2.65%, in January 2021, and stayed near 3% through October 2021. Rates are much higher now.

For the latest average rates, see Freddie Mac’s weekly mortgage rate survey. Freddie Mac publishes a new weekly average every Thursday.

Homeowners with home values that were too low relative to their mortgage balances were barred from taking advantage of these historically low interest rates — and from the substantial monthly savings that came with them.

That’s where HIRO and FMERR came in. Both programs allowed homeowners to refinance their Fannie or Freddie mortgages, even if their homes were “underwater,” or worth less than the mortgage balance. Both programs are now paused, and neither company has announced a restart. A homeowner with enough equity can still use a standard refinance if today’s rates are lower than the current rate.

Check your refinance eligibility. Start here (Oct 28th, 2026)

HIRO: Fannie Mae’s paused high-LTV refinance

Editor’s note: Fannie Mae paused HIRO in 2021 because of low volume and the effect of the revised QM rule. Its Selling Guide still says the acquisition of high LTV refinances is paused, and Fannie Mae has not announced a restart date. You cannot get a HIRO loan today. A lender can tell you whether a standard refinance would work for you.

HIRO replaced HARP for Fannie Mae loans. It let borrowers who paid on time refinance even when they owed more than their home was worth. A fixed-rate HIRO loan had no maximum loan-to-value ratio.

Check your refinance eligibility. Start here (Oct 28th, 2026)

HIRO rules before the pause

These were the main HIRO rules before the pause. You cannot apply for HIRO today. To qualify, all of these had to be true:

• Your current mortgage loan is owned by Fannie Mae*
• Your loan’s note date was October 1, 2017 or later
• At least 15 months have passed from the note date of the existing loan to the note date of the new home loan
• You have made all your payments on time in the last 6 months
• Your loan-to-value ratio is above 97% for a one-unit, owner-occupied home

*You may not even know that your mortgage is owned by Fannie Mae. If you’re unsure, use this lookup tool on the Fannie Mae website.

Because HIRO is paused, meeting these rules does not get you a loan today. Ask a lender whether a standard refinance would lower your payment.

FMERR: The Enhanced Relief Refinance Program

Editor’s note: Freddie Mac stopped accepting FMERR loans in 2021. It made them ineligible for delivery “until further notice”, and it has not announced a restart. You cannot get an FMERR loan today. If Freddie Mac owns your loan and your income is at or below the area median, ask a lender about Freddie Mac’s Refi Possible refinance. It allows up to 97% loan-to-value, so it will not help if you owe more than 97% of your home’s value. Otherwise, a lender can tell you whether a standard refinance would work for you.

For borrowers with a mortgage through Freddie Mac, Freddie Mac’s Enhanced Relief Refinance program (FMERR) was created to help homeowners with limited equity take advantage of historically low interest rates and reduce their monthly payments.

Check your refinance eligibility. Start here (Oct 28th, 2026)

FMERR rules before the suspension

These were the main FMERR rules before Freddie Mac suspended it. You cannot apply for FMERR today. To qualify, all of these had to be true:

• Your current mortgage is owned by Freddie Mac*
• Your loan’s note date was October 1, 2017 or later
• Your loan-to-value ratio is at least 97.01% for a one-unit, owner-occupied residence
• You have made all your payments on time in the last 6 months

*You may not even know that your mortgage is owned by Freddie Mac. If you’re unsure, use this lookup tool on the Freddie Mac website.

Because FMERR is suspended, meeting these rules does not get you a loan today. Ask a lender whether a standard refinance would lower your payment.

Is there a mortgage stimulus from Congress?

No. Congress has no mortgage stimulus program, and the pandemic-era help has ended.

The American Rescue Plan, signed in March 2021, created the Homeowner Assistance Fund (HAF). It sent nearly $10 billion to states to help homeowners hurt by the pandemic with mortgage payments, property taxes, homeowners insurance, HOA fees and utility bills. The program has ended. Treasury says the HAF award period ended on September 30, 2026, and HAF recipients may no longer use the funds to help homeowners.

If you are behind on your mortgage, call your servicer and ask about your options. The CFPB explains how to work with your mortgage servicer.

Negotiating mortgage forbearance

Most mortgage servicers are willing to work with borrowers who may be falling behind on their mortgage loans. If you’re unsure who your loan servicer is, this lookup tool can help you find that information.

Forbearance and other options depend on your loan type and your hardship. A servicer may offer a temporary pause or reduction in payments, a repayment plan or a loan modification. The special COVID-19 forbearance rights ended in 2023.

Of course, you’ll still owe the money you’ve delayed paying and will have to repay it at some point. Ask your servicer to put the terms in writing, including any fees or interest.

For more information, visit the Consumer Financial Protection Bureau information page.

Check your refinance eligibility. Start here (Oct 28th, 2026)

FHA, VA and USDA loans: Streamline refinances for government-backed loans

If you have a government-backed loan — an FHA, VA or USDA loan — you won’t be able to take advantage of the HIRO or FMERR programs.

Still, there’s another great refinance option available, to enable homeowners to reduce their mortgage interest rate — even if their home’s market value is low compared to their mortgage balance.

If your mortgage is backed by the Federal Housing Administration, the Department of Veterans Affairs or the United States Department of Agriculture, you have refinancing options, even if your mortgage is underwater.

FHA, VA and USDA loan programs all offer Streamline Refinance options, which are quick and affordable refinance loans with reduced eligibility requirements. These Streamline Refinance programs require little paperwork and take less time and money than a conventional refinance.

Streamline Refinance Eligibility: Lower your interest rate quickly and affordably

You may be eligible for a Streamline Refinance if:

• You have an FHA, VA or USDA loan
• You will get a net tangible benefit. For FHA and VA loans, a fixed-to-fixed refinance generally must lower your rate by at least 0.5 percentage point (for FHA, the interest rate plus the annual mortgage insurance rate). For USDA Streamlined-Assist loans, your monthly payment, including the annual fee, must drop by at least $50
• Your recent payment history is good. FHA looks at the last 6 months. VA requires six monthly payments in a row. USDA allows no delinquency of more than 30 days in the last 180 days
• Your loan is old enough. FHA requires at least 210 days since closing and six payments made. VA requires 210 days since your first payment was due and six payments in a row. USDA requires that the loan closed at least 180 days ago

If you meet these conditions, a streamline may lower your payment, but only if today’s rates are below your current rate. Speak with your mortgage lender about your personal finances and options.

Check your refinance eligibility. Start here (Oct 28th, 2026)

VA Streamline Refinance

Though not a formal mortgage relief program, VA borrowers can take advantage of the VA Streamline Refinance, also known as the Interest Rate Reduction Refinance Loan (IRRRL), which allows military service members and their families to quickly and affordably take advantage of lower interest rates and reduce their monthly mortgage payment.

One notable benefit of the IRRRL is that borrowers can roll the funding fee and allowable closing costs into the new loan. The funding fee is 0.5%. The lender must show that the other fees and closing costs will be paid back through lower monthly payments within 36 months. If they are, it is possible to refinance with little or no money up front.

For borrowers looking to reduce their interest rate without taking any cash out of their home equity, the VA Streamline Refinance is one of the best mortgage products on the market.

VA Streamline Refinance Eligibility: Lower your interest rate and monthly payments

To qualify for a VA Streamline Refinance, you must meet the VA’s minimum service requirements. Most veterans, including National Guard and Reservists and their families, can qualify.

You can typically qualify for a VA Streamline Refinance without any credit score, income or asset verification, or without a property appraisal. That means you can refinance quickly and affordably.

In addition to those minimum service requirements, you may be eligible if you meet the following criteria:

• You have made at least six monthly payments in a row on your current VA loan
• It’s been 210 days or more since the first payment on your existing loan was due
• You will benefit demonstrably from the new mortgage. For a fixed-to-fixed refinance, the new rate must be at least 0.5 percentage point lower

Mortgage Refinance Relief FAQ

Does Congress have a mortgage stimulus program?

No. Congress has no mortgage stimulus program. In March 2021, the American Rescue Plan set aside nearly $10 billion for the Homeowner Assistance Fund, but that program ended on September 30, 2026.

What was the Homeowner Assistance Fund?

It was a pandemic-era fund that sent money to states to help homeowners with mortgage payments, property taxes, homeowners insurance, utility bills and HOA dues. Treasury says HAF recipients may no longer use the funds to help homeowners.

Is HARP still available?

No. HARP (the Home Affordable Refinance Program) was discontinued on the last day of 2018. HIRO and FMERR were launched in 2018 to serve a similar function, but both have been paused since 2021.

Are mortgage relief programs real?

Some are. Servicer options such as forbearance and loan modifications are real, and so are the FHA, VA and USDA streamline refinances. HIRO, FMERR and the Homeowner Assistance Fund are no longer available. Be careful of anyone who asks for a fee before they help. Federal rules ban up-front fees for mortgage relief services. Start with your servicer.

Who is eligible for mortgage relief programs?

It depends on your loan type and your situation. Government-backed loans (FHA, VA and USDA) can use streamline refinances, even if your home value is low compared to your mortgage balance. Servicer options depend on your hardship and your loan.

Check your refinance eligibility. Start here (Oct 28th, 2026)