SFH Direct Loan and Grant Programs
June 25, 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 July 31, 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 September 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 COVID-19 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 may have the interest waived that accrues on missed payments during the forbearance period. Loans may be reamortized or refinanced at the conclusion of the forbearance. The term of the initial forbearance and any extension may be shortened at the borrower’s request.
In addition, Borrowers should be aware the American Rescue Plan Act of 2021 has established the Homeowner Assistance Fund (HAF) to provide financial assistance to eligible homeowners who have suffered financial hardships during the COVID-19 emergency. Qualified expenses may include mortgage payment assistance, mortgage reinstatement, utilities, insurance, and other housing related costs. Additional information on the HAF is available at treasury.gov. Borrowers are encouraged to explore these resources.
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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