On this page
- Mortgage assistance for seniors: where to start
- Step 1: Call your mortgage servicer early
- Step 2: Free mortgage assistance for seniors from HUD counselors
- Step 3: Mortgage relief options your servicer can offer
- Step 4: When higher taxes or insurance raise your payment
- Step 5: Should you refinance at today’s rates?
- Using home equity: reverse mortgage and other options
- What happened to the Homeowner Assistance Fund
- How to avoid mortgage relief scams
- Mortgage assistance for seniors FAQ
- Getting mortgage assistance for seniors: your next step
There is no federal program that pays seniors’ mortgages, and there is no special federal mortgage grant for older homeowners. The pandemic-era Homeowner Assistance Fund has also ended. Mortgage assistance for seniors today comes from your servicer’s relief options, free HUD-approved housing counselors, and state or local programs that lower property taxes or help in an emergency.
Below is what to try first, what each option does and how to avoid paid “relief” companies.
Mortgage assistance for seniors: where to start
If you’re behind on your mortgage, or worried you soon will be, try these steps in order. The early steps are free, and they keep the most options open.
- Call your mortgage servicer, ideally before you miss a payment.
- Talk to a free HUD-approved housing counselor.
- Ask about a repayment plan, forbearance, loan modification or partial claim.
- If taxes or insurance drove the increase, check your escrow account and local property tax relief.
- Consider refinancing or home equity last.
If your payments are current and you want to see whether a different loan could cost less, you can compare lender offers below.
Step 1: Call your mortgage servicer early
Your servicer is the company that collects your payment, and it is the first stop for mortgage assistance for seniors. Its phone number is on your monthly statement. Call before you fall behind if you can, because more options are open while the loan is current.
Ask for loss mitigation, the department that handles plans to help borrowers avoid foreclosure. Then ask which options your loan may qualify for and what the servicer needs from you.
What to have ready
Servicers usually need a complete application before they decide. Have these ready:
- A short hardship letter explaining what changed, such as a tax increase or new medical bills
- Your Social Security award letter
- Pension and retirement account statements
- Two or three months of bank statements
- Your latest federal tax return
- A monthly budget of income and bills
Send copies, never originals, and keep a log of every call.
Federal rules that protect you
The CFPB’s servicing rules (Regulation X) require servicers to try to reach you by phone by the 36th day of a missed payment and to send a written notice by the 45th day. In general, a servicer cannot start foreclosure until the loan is more than 120 days delinquent. Also, if you send a complete application more than 37 days before a foreclosure sale, most servicers must review it before moving ahead with the sale.
Step 2: Free mortgage assistance for seniors from HUD counselors
HUD-approved housing counselors work for nonprofit or public agencies approved by the U.S. Department of Housing and Urban Development. HUD says foreclosure prevention counseling from these agencies is always free.
To find one, call HUD at 800-569-4287 or use HUD’s online counselor search. The CFPB has a similar housing counselor search tool.
A counselor can review your budget, help with the servicer’s application and talk to the servicer for you. Counselors also know local programs, such as tax relief or emergency funds. Since this help is free, a fee to “apply” for a modification is a warning sign.
Step 3: Mortgage relief options your servicer can offer
Most mortgage relief for seniors comes from the options below. The rules of whoever owns or insures your loan decide which ones you can get.
- Repayment plan: You make your regular payment plus an extra amount until you catch up.
- Forbearance: You pay less, or nothing, for a set time. You still owe the skipped amount, so the servicer then reviews you for a way to repay it.
- Loan modification: The loan changes permanently to lower the payment. For example, the servicer may add past-due amounts to the balance, extend the term or lower the rate.
- Partial claim or payment deferral: Missed payments move into a separate, interest-free balance, and your loan becomes current. You repay that balance later, typically when you sell, refinance or pay off the loan.
Mortgage assistance for seniors by loan type
- Fannie Mae and Freddie Mac: Both offer a Flex Modification that can extend the term up to 480 months (40 years), aiming for about a 20% cut in principal and interest. Fannie Mae’s payment deferral can move 2 to 6 months of missed payments to the end of the loan.
- FHA: Since October 1, 2025, HUD’s options include repayment plans, forbearance, partial claims, loan modifications and a payment supplement. FHA-HAMP and the COVID-19 options expired September 30, 2025. FHA generally allows one permanent option every 24 months.
- VA: The VA Servicing Purchase (VASP) program ended May 1, 2025. VA now lists special forbearance, repayment plans, 30-year and 40-year modifications and a new VA partial claim. However, servicers have until November 28, 2026, to add the partial claim, so ask whether yours offers it yet.
- USDA guaranteed loans: Servicers can offer forbearance, repayment plans, modifications and an interest-free mortgage recovery advance for past-due amounts.
If keeping the home is not realistic
Selling on your own terms usually protects the most equity. A short sale lets you sell for less than you owe, with the servicer’s approval. A deed in lieu of foreclosure hands the home to the servicer instead of going through foreclosure. Before you choose, a counselor can explain the credit and tax effects.
Step 4: When higher taxes or insurance raise your payment
Many seniors fall behind because property taxes or insurance rose while the loan payment stayed the same. Your servicer pays those bills from an escrow account funded by your monthly payment. When they rise, the yearly escrow review finds a shortage, and your payment goes up.
Escrow shortages can be spread over 12 months
Under Regulation X, if the shortage is at least one month’s escrow payment, the servicer can only leave it alone or spread repayment over at least 12 months. For a smaller shortage, it may ask for payment within 30 days.
Say your county raises your tax bill by $1,200 a year. First, your escrow deposit rises $100 a month to cover the new bill. Then, repaying a $1,200 shortage over 12 months adds another $100. So the payment rises about $200 a month for a year, then about $100 after that. This example covers taxes only and assumes no change in insurance or the escrow cushion.
Ask for the escrow analysis and check it against your actual bills. Shopping for homeowners insurance can also help.
Mortgage breaks for seniors: property tax relief
Most “mortgage breaks for seniors” are property tax breaks run by states, counties and cities, so the rules vary. Common types include:
- Senior homestead exemptions, which lower your home’s taxable value
- Assessment freezes or caps, which limit how fast that value can rise
- Tax deferral programs, which let you postpone some taxes until a later date, such as a sale
For example, Texas requires school districts to give homeowners 65 or older an additional $60,000 residence homestead exemption, according to the Texas Comptroller (checked October 2026). Many programs need an application, so ask your county assessor what you qualify for. Our guide on how to lower your property taxes covers the basics. For repair costs, see home repair grants for seniors.
Local emergency help
Some state housing finance agencies, local governments and nonprofits run emergency funds for homeowners. The Eldercare Locator (1-800-677-1116 or eldercare.acl.gov), a public service of the U.S. Administration for Community Living, can help you find local senior services.
Step 5: Should you refinance at today’s rates?
For most seniors with older loans, refinancing won’t lower the rate right now. Freddie Mac’s weekly survey put the average 30-year fixed rate at 7.32% on October 22, 2026, up from 6.19% a year earlier.
How a refinance compares with a modification
Say you owe $120,000 at 4.0% with 15 years left:
| Option | Rate | Term | Monthly principal and interest | Total interest |
|---|---|---|---|---|
| Keep current loan | 4.0% | 15 years left | $887.63 | $39,773 remaining |
| New 30-year fixed | 7.32% | 30 years | $824.32 | $176,754 |
| New 15-year fixed | 6.68% | 15 years | $1,057.24 | $70,303 |
| Modification to 40 years (illustration) | 4.0% | 40 years | $501.53 | $120,733 |
The new 30-year loan saves only $63.31 a month, but it costs about $137,000 more in interest, plus closing costs. Meanwhile, a new 15-year loan at 6.68%, the October 22 average, raises the payment to $1,057.24.
A modification that stretched the same $120,000 to 40 years at the existing 4.0% rate would be $501.53 a month, if the servicer offers it. This is only an illustration. The loan owner’s rules set the real terms. Fannie Mae’s Flex Modification, for instance, stops extending the term once the payment falls about 20%, or roughly $710 here before any past-due amounts are added.
All figures are principal and interest only. Property taxes, homeowners insurance, any mortgage insurance and closing costs are extra. To weigh a refinance, see is refinancing worth it.
Streamline refinances when your rate is high
A streamline refinance can help if your current rate is higher than today’s.
- FHA streamline: HUD requires an FHA-insured loan that is current, plus a net tangible benefit to you. See FHA streamline refinance rules.
- VA IRRRL: This replaces a VA loan with a new one, usually at a lower rate. Ask the lender how late payments affect approval.
- USDA streamlined-assist: This refinances a USDA loan. No payment can be more than 30 days late in the past 180 days. See USDA streamline refinance guidelines.
If you’re already behind, see refinancing with a late mortgage payment.
Qualifying for a new loan in retirement
Lenders can count Social Security, pensions and regular retirement account withdrawals as income. Then they weigh your debts against it, which is your debt-to-income ratio. See getting a mortgage in retirement for details.
If your rate is well above today’s average, comparing several lenders shows whether a refinance could help.
Using home equity: reverse mortgage and other options
A reverse mortgage is a different kind of mortgage assistance for seniors. It lets homeowners 62 and older borrow against home equity. The FHA-insured version, the Home Equity Conversion Mortgage (HECM), can pay off your existing mortgage, so no monthly mortgage payment is due.
However, you must still pay property taxes, homeowners insurance and upkeep, or the loan can go into default. HUD-approved HECM counseling is also required before you apply. The 2026 HECM limit is $1,249,125 (HUD Mortgagee Letter 2025-22).
The balance grows over time, which leaves less equity for you or your heirs. So a HECM fits best if you plan to stay for years. See reverse mortgages for seniors and HECM requirements.
A HELOC or home equity loan adds a second monthly payment, so it works only if your budget can carry it. Compare them in HELOC vs. home equity loan. Downsizing to a less costly home can also free up equity and cut taxes, insurance and upkeep.
What happened to the Homeowner Assistance Fund
The Homeowner Assistance Fund (HAF) was a $9.961 billion program created by the American Rescue Plan Act of 2021 and run by the states. According to the U.S. Treasury, the period of performance for HAF awards ended on September 30, 2026. As a result, states may no longer use HAF funds to help homeowners.
Check your state housing finance agency for any successor program. Treasury also points homeowners to the CFPB’s help for homeowners page.
How to avoid mortgage relief scams
Scammers often advertise “mortgage assistance for seniors” to older homeowners who are behind. Under the federal Mortgage Assistance Relief Services rule (Regulation O, 12 CFR 1015), a relief company generally cannot charge you until you sign a written agreement with your servicer that includes the relief it got. Lawyers can take advance fees only under narrow conditions.
Red flags include:
- A fee before any help is delivered
- A guarantee to stop foreclosure
- Advice to stop paying or talking to your servicer
- A request to sign over your deed
- Instructions to send payments to them instead of your servicer
- A “forensic loan audit” sold as a way to cancel the loan
- A demand for payment by wire, cashier’s check or payment app
Report scams at ReportFraud.ftc.gov and to your state attorney general. The FTC’s mortgage relief scams page lists more warning signs. For a problem with your servicer, file a complaint with the CFPB.
Mortgage assistance for seniors FAQ
Is there government mortgage assistance for seniors?
No federal program is just for seniors. Instead, government mortgage programs for seniors work through your loan type: FHA, VA, USDA, Fannie Mae and Freddie Mac each set relief options. HUD also funds free housing counseling.
Are there mortgage assistance grants for seniors?
No federal mortgage grant exists for seniors, and the Homeowner Assistance Fund has ended. Some states, counties and nonprofits run small emergency funds, and a HUD-approved counselor can help you find them.
Will the government pay off my mortgage?
No. No federal program pays off a homeowner’s mortgage. Relief options lower or pause payments, and you still repay the debt.
Can a senior get a loan modification?
Yes. Age does not affect eligibility. The servicer reviews your income and hardship under the loan owner’s rules, and Social Security and pension income count.
Is a reverse mortgage a good way to stop mortgage payments?
It can be, if you plan to stay and can keep paying taxes, insurance and upkeep. A HECM can pay off the mortgage, but the balance grows and your equity shrinks. The required counseling helps you weigh it.
Getting mortgage assistance for seniors: your next step
The most useful mortgage assistance for seniors usually starts with two free calls: one to your servicer and one to a HUD-approved counselor at 800-569-4287. Make both calls before you miss a payment if you can.
If a tax or insurance increase caused the problem, ask your county about senior property tax relief at the same time.
