Published by FOX Business | September 30, 2021
The Federal Housing Administration (FHA) has announced new forbearance options for homeowners who are struggling to make their mortgage payments.
The Department of Housing and Urban Development (HUD) and the Federal Housing Administration (FHA) announced Monday the extension and addition of new COVID-19 mortgage relief options for homeowners with FHA home loans.
Borrowers of FHA loans who are struggling to make their monthly mortgage payments and are at risk of foreclosure due to the COVID-19 pandemic will be able to use Home Equity Conversion Mortgages (HECMs) to remain in their homes.
“Our top priority is to help as many individuals and families as possible to recover from the COVID-19 pandemic and keep their homes,” Lopa Kolluri, U.S. principal deputy assistant secretary for housing, said. “For FHA, this means that we will continue to work through all of our channels – mortgage servicers, housing counselors and our other federal partners – to ensure we get the positive outcomes struggling homeowners need.”
The new forbearance offerings will expire when the COVID-19 National Emergency ends. This will allow homeowners to enter forbearance through the end of the pandemic.
The FHA is now offering up to six months of COVID-19 forbearance for borrowers who request initial forbearance beginning in October. These homeowners can also get up to six months of additional assistance if they are still struggling financially once the initial forbearance period ends.