What mortgage assistance programs are available for Texas homeowners in 2026?

In 2026, Texas homeowners struggling with mortgage payments can access: free HUD-approved housing counseling through TDHCA and TSAHC, loss-mitigation programs through their mortgage servicer (forbearance, repayment plan, modification), FHA-specific hardship programs for FHA loans, VA loss-mitigation for VA loans, USDA rural development programs, and local city programs in Houston, Dallas, San Antonio, and Austin. The Texas Homeowner Assistance Fund (TXHAF) closed in April 2025 and is no longer accepting applications.

How fast can foreclosure happen in Texas?

Texas is a non-judicial foreclosure state with one of the fastest foreclosure timelines in the country. After a borrower is 120 days delinquent, the servicer can send a 20-day Notice of Default. If the loan is not reinstated, a Notice of Sale must be posted 21 days before the foreclosure sale. The total time from first foreclosure notice to completed sale can be as short as 6 to 8 weeks — significantly faster than judicial foreclosure states. Texas homeowners must act quickly.

Is the Texas Homeowner Assistance Fund still open?

No. The Texas Homeowner Assistance Fund (TXHAF) officially closed on April 15, 2025, after distributing over $840 million in assistance to eligible Texas homeowners. The program is no longer accepting new applications. Texas homeowners experiencing hardship in 2026 should contact their mortgage servicer directly and work with a TDHCA-approved housing counselor.

Where can I find free mortgage help in Texas?

Free mortgage help in Texas is available through: HUD-approved housing counselors listed on the TDHCA website at tdhca.texas.gov, the TSAHC Texas Financial Toolbox at tsahc.org/homebuyers-renters/foreclosure-prevention, Lone Star Legal Aid for low-income homeowners facing foreclosure, and the Texas Office of the Attorney General for consumer protection resources.

What is the right of reinstatement in Texas foreclosure?

Texas law gives homeowners the right to reinstate the loan — pay all past-due amounts, fees, and costs — up to 5 days before the scheduled foreclosure sale date. This right is specifically guaranteed under Texas Property Code Section 51.002. If you can gather enough funds to bring the loan fully current, reinstatement stops the foreclosure. Contact your servicer to request a written reinstatement quote before acting.

Texas homeowners

Texas mortgage assistance programs in 2026

Texas homeowners facing mortgage hardship in 2026 have several options — but the state's non-judicial foreclosure process is one of the fastest in the country, which means acting early is more critical here than almost anywhere else. This guide covers the programs currently active, what closed, and what Texas-specific rules you need to know before you miss a payment.

Last reviewed: May 2026 · About this site

Texas foreclosure moves fast: Texas uses a non-judicial foreclosure process. Once the process starts, a home can be sold at foreclosure in as little as 6 to 8 weeks from the first formal notice. Contact your servicer and a free housing counselor before you reach that point.

The Texas foreclosure timeline — why speed matters here

Most people are surprised to learn how quickly foreclosure can proceed in Texas. Unlike judicial states that require court proceedings (which can take 1–3 years), Texas follows a statutory non-judicial process:

After 120 days of delinquency, your servicer can begin the foreclosure process.
The servicer sends a Notice of Default giving you 20 days to cure the default.
If not resolved, a Notice of Sale is posted at least 21 days before the foreclosure sale date.
Foreclosure sales in Texas are held on the first Tuesday of each month at the county courthouse.
Texas law gives you the right to reinstate the loan up to 5 days before the sale date — but that window closes fast.

The practical implication: if you are already 90 days delinquent and your servicer has not yet made contact, the formal process could be initiated within weeks. Do not wait.

Free counseling and foreclosure prevention: where to start

TDHCA housing counselors (free statewide)

The Texas Department of Housing and Community Affairs (TDHCA) maintains a statewide network of certified housing counseling agencies. These counselors help homeowners understand their options, prepare for servicer conversations, review budgets, and navigate loss-mitigation applications. The service is free. Find a counselor by county at tdhca.texas.gov.

TSAHC Texas Financial Toolbox (free)

The Texas State Affordable Housing Corporation (TSAHC) offers a foreclosure prevention program with certified counselors and an online Financial Toolbox to locate help by ZIP code. TSAHC counselors can review your full financial picture and connect you to local resources. Access the tool at tsahc.org.

Lone Star Legal Aid

For low-income Texas homeowners at risk of foreclosure, Lone Star Legal Aid offers free legal assistance through its Foreclosure Prevention Project. Legal representation can be especially valuable in Texas where the foreclosure timeline is short and procedural deadlines are strict. Find services at lonestarlegal.blog.

Texas Homeowner Assistance Fund — now closed

The Texas Homeowner Assistance Fund (TXHAF) — funded by the American Rescue Plan Act and administered by TDHCA — distributed over $840 million to Texas homeowners between 2022 and 2025. The program provided up to $65,000 per household to cover past-due mortgage payments, property taxes, insurance, and HOA fees.

TXHAF officially closed on April 15, 2025 and is no longer accepting applications. If you are looking for direct financial assistance in 2026, the programs below are the relevant ones.

Current programs available to Texas homeowners in 2026

Your mortgage servicer's loss-mitigation programs

The most direct source of mortgage help for Texas homeowners remains your servicer. Contact them before missing payments and ask about forbearance, repayment plans, payment deferrals, and loan modification. Federal regulations require servicers to evaluate complete hardship applications before completing a foreclosure — this applies in Texas too, even with the fast non-judicial timeline. See our guides on mortgage payment help and forbearance vs modification for how to approach this conversation.

FHA loss-mitigation (FHA loans only)

If your loan is FHA-insured, HUD requires your servicer to evaluate you for FHA-specific hardship programs before foreclosure — including FHA-HAMP modification and partial claims. This protection applies to Texas homeowners with FHA loans regardless of the non-judicial foreclosure timeline. See our FHA loan modification guide for full details.

VA loss-mitigation (VA loans only)

Texas has one of the highest concentrations of VA borrowers in the country. VA-backed loans have strong loss-mitigation protections — servicers must exhaust all reasonable alternatives before foreclosure. The VA also has loan technicians who can intervene on your behalf. If you have a VA loan and are struggling, contact the VA at 1-877-827-3702 or visit benefits.va.gov.

USDA rural development (rural Texas homeowners)

For homeowners in rural Texas with USDA-backed loans, the USDA Rural Development program has specific foreclosure prevention options including payment assistance programs and moratoriums for qualifying borrowers. Contact your servicer and identify your loan as USDA-backed when requesting hardship review.

Local city programs in Texas

Houston

The City of Houston's Housing and Community Development Department offers homeowner programs. Contact houstontx.gov/housing for current availability and eligibility. Harris County also has community development programs.

Dallas

Dallas Neighborhood Service Department and Dallas Area Habitat for Humanity offer homeowner support programs. Contact the city's Office of Neighborhood Services or visit Dallas Housing for current program availability.

San Antonio

San Antonio's Neighborhood and Housing Services Department administers homeownership preservation programs. Contact sanantonio.gov/NHSD. Bexar County also has housing assistance resources.

Austin

Austin's Neighborhood Housing and Community Development office has homeowner assistance programs. Contact austintexas.gov for current program details and income eligibility limits.

Your right of reinstatement in Texas

Under Texas Property Code Section 51.002, you have the right to reinstate a defaulted home loan — paying all past-due amounts, late fees, and servicer costs — up to 5 days before a scheduled foreclosure sale. This right exists by statute and cannot be waived. If you are facing a foreclosure sale date, request a written reinstatement quote from your servicer immediately. The quote will be valid through a specific date and includes all costs needed to bring the loan fully current.

What to avoid

Texas has a high rate of foreclosure rescue scams, particularly targeting homeowners who receive formal default notices. Be cautious of anyone who: charges large upfront fees to stop foreclosure, asks you to sign over the deed to your home as part of a "rescue" plan, guarantees to stop foreclosure without reviewing your loan documents, or claims to be affiliated with TDHCA or HUD without verifiable credentials. HUD-approved counseling is always free.

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