FHA Adds COVID-19 Forbearance Relief Options

The Federal Housing Administration on Sept. 27 announced new and extended COVID-19 relief options for borrowers recently or newly struggling to make their mortgage payments because of the pandemic and for senior homeowners with Home Equity Conversion Mortgages who need assistance to remain in their homes.

FHA made the following changes:

–A new COVID-19 Forbearance or HECM Extension period for borrowers who may be newly affected by the pandemic. FHA is now providing up to six months of COVID-19 forbearance for borrowers requesting an initial COVID-19 Forbearance or HECM Extension from their mortgage servicer between October 1 and the end of the COVID-19 National Emergency, and an additional six months if the COVID-19 Forbearance or HECM Extension is exhausted and expires before the end of the COVID-19 National Emergency.

–An additional COVID-19 Forbearance or HECM Extension period for borrowers recently seeking assistance. FHA is now providing up to six months of additional forbearance for borrowers who requested or will request an initial COVID-19 Forbearance or HECM Extension from their mortgage servicer between July 1 and September 30, allowing these borrowers up to a maximum of 12 months of COVID-19 Forbearance or HECM Extension.