When the COVID-19 pandemic initially struck, lockdowns and other related issues caused financial distress for many homeowners. In response to the widespread impact of the pandemic, the Federal Housing Financing Agency provided a 360-day forbearance period. This allowed struggling homeowners to put their mortgage payments on hold, but that initial period is expiring soon. Thanks to provisions under the Coronavirus Aid, Relief and Economic Securities Act that has recently been approved, the forbearance period has been extended for 180 days.

The CARES Act provisions apply specifically to government-backed mortgages on residential properties. This includes USDA, VA, FHA, Freddie Mac and Fannie Mae loans. To request the extension, homeowners must apply before February 28, 2021. Altogether, homeowners may benefit from a total forbearance period of 540 days of suspended mortgage payments. Homeowners will need to repay the amount deferred at the end of the home loan period, when they refinance the mortgage or when they sell the property. Before jumping in to take advantage of the forbearance extension, be aware that homeowners must wait three months after the forbearance period ends before they can apply for their next mortgage.

MortgageDepot specializes in providing homeowners with customized loan solutions. Our lending team actively keeps a pulse on changes to the mortgage lending market, and we apply this deep knowledge with outside-the-box thinking to help our clients achieve their goals. Whether you are struggling to make your mortgage payment today or you are facing other circumstances, contact the MortgageDepot lending team today to explore your options.

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