COVID-19 Mortgage Relief

<p>If you’ve been affected financially by the COVID-19 pandemic and you <a href="https://webcf.waybackmachine.org/web/20211006021837/https://www.consumerfinance.gov/coronavirus/mortgage-and-housing-assistance/help-for-homeowners/learn-about-forbearance/">own a single-family home with a federally backed or FHA-insured mortgage, you can request mortgage forbearance</a>, a pause in making mortgage payments. </p><p><strong><a href="https://webcf.waybackmachine.org/web/20211006021837/https://www.consumerfinance.gov/coronavirus/mortgage-and-housing-assistance/help-for-homeowners/request-forbearance-or-mortgage-relief/">Learn the steps to take and questions to ask if you need mortgage forbearance from your lender.</a> </strong></p><h3>Deadlines for Federally Backed Mortgage Forbearance and Foreclosures</h3><h4>Forbearance</h4><p>For loans backed by HUD/FHA, USDA, VA, Fannie Mae, and Freddie Mac, you can request an initial forbearance through September 30, 2021.</p><h4>Foreclosure</h4><ul><li><p>Lenders could not foreclose on loans backed by HUD/FHA, USDA, VA, Fannie Mae, or Freddie Mac until after July 31, 2021.</p></li></ul><h3>What Your Loan Servicer Must Do If You Request Forbearance</h3><p>If you're having trouble making payments on your federally backed mortgage because of the COVID-19 pandemic, contact your loan servicer before September 30, 2021. Your loan servicer must:</p><ul><li><p>Defer or reduce your payments for 180 days if you contact them to make arrangements</p></li><li><p>Give you another 180 days of mortgage relief at your request</p></li><li><p>Offer options for how you can make up the deferred or reduced payments. They will discuss these options with you at the end of your forbearance period.</p></li></ul><h3>Find Your Loan Servicer</h3><p>If you don't know whether your mortgage is federally backed, <a href="https://webcf.waybackmachine.org/web/20211006021837/https://www.consumerfinance.gov/coronavirus/mortgage-and-housing-assistance/help-for-homeowners/learn-about-forbearance/#qualify">see a list of federal agencies that provide or insure mortgages</a>. You can also check the <a href="https://webcf.waybackmachine.org/web/20211006021837/https://www.knowyouroptions.com/loanlookup">Fannie Mae loan lookup</a> and the <a href="https://webcf.waybackmachine.org/web/20211006021837/https://loanlookup.freddiemac.com/">Freddie Mac loan lookup</a> to see if either one owns or backs your mortgage. Together, Fannie Mae and Freddie Mac own nearly half of all mortgages in the U.S.</p>

<p>Refinancing your mortgage allows you to pay off your existing mortgage and take out a new mortgage on new terms. You may want to refinance your mortgage to take advantage of lower interest rates, to change your type of mortgage, or for other reasons.</p><p>These resources will help you learn more about refinancing your mortgage:</p><ul><li><a href="https://webcf.waybackmachine.org/web/20211006021837/https://www.federalreserve.gov/pubs/refinancings/">A Consumer's Guide to Mortgage Refinancings</a> is your first place to look for an introduction to mortgage refinancing, including useful worksheets, a glossary of terms used in the industry, and more to help you decide if mortgage refinancing is right for you.</li><li>What type of mortgage should you choose? Get information about mortgage types and the settlement process in <a href="https://webcf.waybackmachine.org/web/20211006021837/https://files.consumerfinance.gov/f/201401_cfpb_booklet_settlement.pdf">Shopping for Your Home Loan: Settlement Cost Booklet</a>. </li><li>Veterans may be eligible for refinancing their VA mortgage using an <a href="https://webcf.waybackmachine.org/web/20211006021837/https://www.va.gov/housing-assistance/home-loans/loan-types/interest-rate-reduction-loan/">Interest Rate Reduction Refinancing Loan (IRRRL)</a>.</li></ul>

<p>If you’re at least 62 years old, a reverse mortgage can let you turn part of the equity in your home into cash. You will not have to sell the home or take on additional monthly bills. The reverse mortgage does not have to be paid back as long as you live in your home. You only repay the loan when you sell your home or permanently leave it. Read more <a href="https://webcf.waybackmachine.org/web/20211006021837/https://www.consumer.ftc.gov/articles/0192-reverse-mortgages">information about reverse mortgages</a>.</p><h3>Types of Reverse Mortgages</h3><p><a href="https://webcf.waybackmachine.org/web/20211006021837/https://www.consumer.ftc.gov/articles/0192-reverse-mortgages#types">The three types of reverse mortgages</a> include: </p><ul><li>Federally Insured Reverse Mortgages - Known as Home Equity Conversion Mortgages (HECM)</li><li>Proprietary Reverse Mortgages</li><li>Single Purpose Reverse Mortgages</li></ul><p>Be sure to watch for aggressive lending practices, advertisements that refer to the loan as "free money," or those that fail to disclose fees or terms of the loan. </p><p>When finding a lender remember:</p><ul><li>Do not respond to unsolicited advertisements</li><li>Be suspicious of anyone claiming that you can own a home with no down payment</li><li>Seek out your own reverse mortgage counselor</li><li>Never sign anything you do not fully understand</li><li>Make sure the loan is federally insured</li></ul><h3>Reporting Fraud or Abuse</h3><p>If you suspect fraud or abuse, let the counselor, lender, or loan servicer know. You may also want to file a complaint with:</p><ul><li><a href="https://webcf.waybackmachine.org/web/20211006021837/https://www.usa.gov/federal-agencies/federal-trade-commission">Federal Trade Commission</a> (FTC)</li><li><a href="https://webcf.waybackmachine.org/web/20211006021837/https://www.naag.org/find-my-ag/">State attorney general's office</a></li><li><a href="https://webcf.waybackmachine.org/web/20211006021837/https://www.consumerfinance.gov/ask-cfpb/how-do-i-find-my-states-bank-regulator-en-1637/">State banking authority</a></li></ul><p>If you have questions, contact <a href="https://webcf.waybackmachine.org/web/20211006021837/https://www.hud.gov/program_offices/housing/sfh/sfhhocs">your local HUD Homeownership Center</a> for advice. </p>

FHA Loans and HUD Homes

<p>If you’re a homebuyer, the Department of Housing and Urban Development (HUD) has two programs that may help make the process more affordable.</p><h3>FHA Loans </h3><p>The Federal Housing Administration (FHA) manages the <a href="https://webcf.waybackmachine.org/web/20211006021837/https://www.hud.gov/buying/loans">FHA loans program</a>. This may be a good mortgage choice if you’re a first-time buyer because the requirements are not as strict as for other loans. The down payment and closing costs are low.</p><h4>Am I eligible? </h4><ul><li>You must qualify for a loan with an FHA-approved lender. In general, your <a href="https://webcf.waybackmachine.org/web/20211006021837/https://www.consumerfinance.gov/ask-cfpb/what-is-a-credit-score-en-315/">credit score</a> doesn't need to be high. </li><li>The price of the home you want to insure must be within the <a href="https://webcf.waybackmachine.org/web/20211006021837/https://entp.hud.gov/idapp/html/hicostlook.cfm">loan limit for an FHA home in its location</a>. </li></ul><h4>How Do I Apply? </h4><p>The FHA doesn't lend money to people. It insures mortgage loans from FHA-approved lenders against default. To apply for an FHA-insured loan, you will need to use an FHA-approved lender. <a href="https://webcf.waybackmachine.org/web/20211006021837/https://www.hud.gov/program_offices/housing/sfh/lender/lenderlist">Search for an FHA-approved lender here.</a> </p><ul><li><p><a href="https://webcf.waybackmachine.org/web/20211006021837/https://www.hud.gov/program_offices/housing/sfh/title/repair">Find FHA loan products for manufactured (mobile) homes</a>. </p></li><li><p><a href="https://webcf.waybackmachine.org/web/20211006021837/https://www.consumerfinance.gov/owning-a-home/loan-options/fha-loans/">Learn more about FHA loans</a>. </p></li></ul><h4>How do I complain? </h4><p>If you have a complaint about an FHA loan program, <a href="https://webcf.waybackmachine.org/web/20211006021837/https://www.hud.gov/complaints/customer_service">contact the FHA Resource Center</a>. </p><h3>HUD Homes </h3><p>When homeowners default on their FHA loan, HUD takes ownership of the property, because HUD oversees the FHA loan program. These properties are called either HUD homes or HUD real estate owned (REO) property. </p><h4>Am I eligible? </h4><p>Your qualifications to buy a HUD home depend on your credit score, ability to get a mortgage, and the amount of your cash down payment. You can also use an FHA-insured mortgage to buy a HUD home. </p><h4>How do I apply? </h4><p>Use the <a href="https://webcf.waybackmachine.org/web/20211006021837/https://www.hudhomestore.com/Home/Index.aspx">HUDHomestore</a> to find listings of HUD real estate owned (REO) properties for sale. Click on the agent tab to find contact information to learn more about the property. </p><h4>Where do I call for extra help?</h4><p>If you have a question or need more information about FHA loans or HUD homes, you can:</p><ul><li><p>Check their list of <a href="https://webcf.waybackmachine.org/web/20211006021837/https://www.hud.gov/FHAFAQ">frequently asked questions</a></p></li><li><p><a href="https://webcf.waybackmachine.org/web/20211006021837/https://www.hud.gov/program_offices/housing/sfh/fharesourcectr">Email or call</a> the FHA Resource Center</p></li><li> </li></ul>