Navigating the Illinois Financial Hardship Loan Center

The past few years have been financially challenging for many Illinois residents. Between the COVID-19 pandemic, rising inflation, and economic uncertainty, making ends meet hasn’t been easy. If you’re an Illinois homeowner experiencing financial hardship, help may be available through the state’s Financial Hardship Loan Center.

Understanding the Financial Hardship Loan Center

The Illinois Financial Hardship Loan Center is administered by the Illinois Housing Development Authority (IHDA). It was created to help homeowners struggling with mortgage payments, property taxes, insurance, and other housing costs.

The Loan Center offers several programs

Illinois Emergency Homeowner Assistance Fund (ILHAF) – Provided up to $60,000 in mortgage relief for qualified applicants impacted by COVID-19. This program is now closed due to lack of funding.
Illinois Hardest Hit Program (IL HHF) – Offers up to $35,000 in mortgage payment assistance for unemployed or underemployed homeowners.
Homeowner Assistance Fund (HAF) – Will provide mortgage relief, using funds from the 2021 American Rescue Plan Act. Program guidelines are still being finalized.
Property Tax Relief Programs – Help homeowners access property tax exemptions and deferrals.

In addition to financial assistance, the Loan Center offers free housing counseling to help homeowners navigate their options. Counselors can also create debt management plans and connect homeowners with additional resources.

Am I Eligible for Assistance?

To qualify for most Illinois financial hardship programs, you must:

Be an Illinois resident owning and occupying the home as your primary residence
Have experienced a COVID-19 related financial hardship after January 21, 2020
Meet income eligibility limits

For ILHAF, your household income had to be at or below 150% of the area median income. The income limits may be different for other programs.

Your mortgage also needs to be below a certain threshold, such as $500,000 for ILHAF. And you must own just one property and live in Illinois.

How to Apply for Financial Assistance

Unfortunately, the ILHAF program is now closed due to lack of funds. However, you may still be able to get help through the IL HHF program or other resources.

To get started, here are some steps:

Call the IHDA Financial Hardship Hotline at 1-866-454-3571 to speak with a housing counselor
Determine which program best fits your situation and confirm eligibility
Gather required documents like pay stubs, tax returns, mortgage statements, hardship letters, etc.
Complete and submit the full application along with supporting paperwork
Work with your counselor throughout the review process to provide any additional needed information

Once approved, the assistance funds will be paid directly to your mortgage servicer, local tax authority, insurance provider, or other approved entity.

Other Ways to Get Mortgage Relief

If you don’t qualify for state-funded mortgage relief programs, here are some other options to explore:

Forbearance – Your lender allows you to pause or reduce mortgage payments for a set time.
Loan modification – Adjusts the terms of your loan, such as extending the repayment period.
Refinance – Gets a new mortgage with better terms, which may lower your monthly payment.
Sell your home – Allows you to pay off the mortgage by selling and downsizing.
Bankruptcy – Chapter 13 bankruptcy stops foreclosure and sets up a repayment plan.

Be sure to also ask your lenders, insurers, and utility providers about any hardship programs or payment plans they offer. Every little bit of relief helps!

Don’t Delay – Get Help Today

The Illinois Financial Hardship Loan Center provides a valuable lifeline if you’re struggling with housing costs. Take the time to understand all your options and apply for mortgage relief programs if eligible. With hardship assistance and smart money management, you can get back on track and continue on the road to financial stability.

Help Illinois Families: Relief for Households Across the State

The Pritzker Administration, in partnership with the Illinois Department of Commerce and Economic Opportunity (DCEO), is leveraging federal funds to help Illinois families access and afford home energy assistance and other essential services. Building on the State’s Low-Income Home Energy Assistance Program (LIHEAP) and the Community Services Block Grant (CSBG) program, the State’s Fiscal Year 2024 (FY24) budget provides LIHEAP and CSBG support for eligible Illinoisans seeking assistance to cover costs of utility bills, rent, temporary shelter, food, and other household necessities.

The Help Illinois Families initiative has an online Request for Services form to make it easier and faster for individuals and families to remotely request assistance through the LIHEAP and/or CSBG programs. Assistance is subject to funding availability and completion of the form linked below does not guarantee assistance.

Note – Applying for these programs is a free service. Assistance in other languages is also available free of charge through Help Illinois Families website and call center. All households are encouraged to apply, regardless of immigration status.

Filling out the form below is the first step in a process that will be completed by local agencies throughout the state. Increased eligibility thresholds and other program flexibilities will continue for FY24 to assist additional households needing support.

All applications will be reviewed on a first come, first served basis and are subject to funding availability. More information on the application process can be found below.

national hardship loan center

FAQ

What is the hardship program in Illinois?

Illinois Homeowner Assistance Fund (ILHAF) The Illinois Homeowner Assistance Fund Program provides direct financial assistance to prevent mortgage delinquencies, defaults, displacements, and foreclosures for income-eligible homeowners experiencing pandemic-related hardships.

Is the financial hardship loan center real?

A malicious scam has been surging lately, as reported by TNS’ Robocall Protection team, targeting individuals who carry debt and are looking for a lifeline. Callers claiming to be from a ‘financial hardship loan center’ are attempting to steal victim’s information or worse, digging them deeper into debt.

Is hardship personal loan legit?

Hardship personal loan programs are offered by many small banks and local credit unions. This type of loan tends to have low interest rates, low maximum loan amounts, and short repayment schedules. You may have to prove that you have genuine financial difficulty to qualify for a hardship loan.

Is there a such thing as a hardship loan?

Hardship loans are personal loans that typically come with fixed interest rates and payments that are due monthly until you repay the balance. After getting approved for a hardship loan, you’ll receive a lump-sum payment via direct deposit or check.