SFH Direct Loan and Grant Programs
February 16, 2021
USDA Extends Eviction and Foreclosure Moratorium, and Offers Guidance on Mortgage Forbearance Deadline
U.S. Department of Agriculture (USDA) Single Family Housing Direct Loan Program (SFHDLP) extends the foreclosure and eviction moratorium for SFHDLP borrowers through June 30, 2021.
The moratorium applies to:
- Initiation of foreclosures or completion of foreclosures in process, excluding vacant and abandoned properties.
- Evictions of borrowers from properties financed with a USDA direct home loan.
Mortgage (Payment) Forbearance Guidance:
Borrowers who experience financial hardship due, directly or indirectly, to the COVID-19 emergency may request and be granted an initial forbearance on or before June 30, 2021. The initial forbearance period may be up to 180 days and the borrower may request an extension of up to an additional 180 days.
Borrowers who received an initial CARES Act forbearance before June 30, 2020, may be granted up to two additional three-month payment forbearances. The borrower must request each extension individually.
Borrowers who received a COVID-19 forbearance under this guidance may have the interest waived that accrues on missed payments during the forbearance period. Loans may be reamortized at the conclusion of the forbearance. The term of the initial forbearance and any extension may be shortened at the borrower’s request.
For more information on USDA Rural Development’s actions to support customers directly impacted by COVID-19, visit https://www.rd.usda.gov/coronavirus.
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