If you are struggling to make your mortgage payment on your FHA-insured mortgage because of COVID-19, help is available, but you must take action. Here’s what you need to know:
- Contact your mortgage servicer.
Their information is on your mortgage statement or their website. You can also use this tool to look up your mortgage servicer. If you don't know your servicer, look them up here. For more help, contact a HUD-approved housing counseling agency in your area.
- Tell your servicer that you would like to pause your payments.
This is called a forbearance. Because of the current crisis, most homeowners can temporarily stop making payments without any penalty. But you must contact your servicer.
- Make a plan for when your payment pause ends.
You will not have to repay your paused payments all at once. Talk to a local housing counselor for free guidance on how to make sure your payments are affordable.
Foreclosure and Eviction Moratorium
FHA's foreclosure and eviction moratorium is in effect through . If you’re behind on your mortgage payments and occupy your property, the moratorium protects you from foreclosure and eviction proceedings.
What is Forbearance?
A forbearance is a temporary pause or reduction in your mortgage payments to give you time to stabilize your financial situation. Your mortgage servicer is required to offer you a mortgage payment forbearance to reduce or pause making payments for a period of six months, with the option to extend for an additional six months if needed. You must request a COVID-19 Forbearance from your mortgage servicer by .
If you have a mortgage that is insured by FHA and you are unable to make your mortgage payment because of COVID-19, you’re eligible for FHA's COVID-19 Forbearance.
|If you are…||Then…|
|Behind or about to be behind on your mortgage payments because of COVID-19 and you have not yet requested a forbearance from your servicer…||You can request up to 6 months of forbearance initially, and an additional 6 months if you need it. You must request this assistance from your mortgage servicer by .|
|Already on forbearance, started your forbearance period on or before , and now need more time…||After 12 months of COVID-19 forbearance, you are eligible for up to two additional 3-month extensions from your mortgage servicer.|
No extra fees, penalties or interest will be added to your account.
You will have to repay any suspended or reduced payments in the future. You will not be required to pay a “lump sum” for the total missed payments at the end of the forbearance period. Your servicer will work with you on options to bring your loan current over time.
Requesting Assistance from Your Mortgage Servicer
FHA COVID-19 mortgage payment forbearance is for all homeowners with an FHA-insured single family forward mortgage. Homeowners with Home Equity Conversion Mortgages should also contact their mortgage servicer for options that are comparable to forbearance.
Contact your mortgage servicer to request a forbearance. You can find their contact information on your mortgage statement. You can also go to most mortgage servicer's websites to apply for forbearance there.
When working with your servicer, you should:
- State that you are having a financial hardship due to COVID-19. You will not be required to provide documentation of this hardship.
- Request a COVID-19 Forbearance for your mortgage payments.
- Ask your servicer to confirm the details of your agreement in writing.
Note: It may take a while to get a mortgage servicer on the phone. They are experiencing a high call volume and may be impacted by the pandemic.
If you need support working with your mortgage servicer or understanding your options, we can connect you with a HUD-approved housing counseling agency. Find an agency near you on HUD's Housing Counseling webpage. A housing counselor can explain your options, work with you on your financial situation, help you obtain assistance from your mortgage servicer, and lead you to other community resources for which you may be eligible.
Re-start Your Mortgage Payments
Once you are able to resume making mortgage payments, contact your mortgage servicer. Your mortgage servicer will work with you to determine which options you’re eligible for to bring your mortgage current, starting with FHA's COVID-19 Standalone Partial Claim.
- If you are able to resume making your mortgage payments, FHA's COVID-19 Standalone Partial Claim takes your past due amounts and puts them in a special subordinate lien to be repaid later. You will only repay the junior lien when your mortgage ends, which, for most borrowers, is when you sell your home or refinance your mortgage. This lien carries no interest.
- If you are not able to make your payments or if you don't qualify for a COVID-19 Standalone Partial Claim, your servicer will work with you on other COVID-19 options that can help you keep your home, including options that may make your monthly payments more affordable.