Updates to Guidance for Direct Loan Borrowers Impacted by COVID-19

USDA Rural Development sent this bulletin at 09/27/2021 10:40 PM EDT

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USDA Rural Development - Together, America Prospers

SFH Direct Loan and Grant Programs

Monday, September 27

USDA Updates Guidance for Direct Loan Borrowers Impacted by COVID-19

PURPOSE

The purpose of this notice is to announce the removal of the September 30, 2021 deadline for COVID-19 impacted Direct Loan borrowers to request mortgage payment assistance. Direct Loan Borrowers may request assistance until the end of the National Emergency is declared

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 until the end of the National Emergency is declared. 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 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.

Program Information

Single Family Housing Direct Loans

Single Family Housing Repair Loans and Grants

Mutual Self Help Housing Technical Assistance Grants

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