Mortgage assistance programs are available to help you make your payments and relieve financial stress. If you have been hit hard by the COVID-19 pandemic or another financial burden, you may qualify for relief programs administered by the federal government.
If you qualify for federal mortgage relief, you could temporarily pause your mortgage payments without penalty, allowing you to pay off other debts and get back on your feet. This mortgage relief program is part of the CARES act, an emergency bill passed by Congress to help millions of Americans during the COVID-19 pandemic. Learn more about how to get mortgage assistance today and how it may benefit you.
If you are struggling to pay your mortgage, you may qualify for mortgage assistance provided through federal legislation. The lingering financial effects of the COVID-19 pandemic are still being felt by U.S. homeowners, especially those who have experienced a loss or reduction in their incomes.
As an initial response to the pandemic, the U.S. passed the Coronavirus Aid, Relief, and Economic Security (CARES) act. The Congress mortgage relief program is part of this act and aims to assist homeowners who have been or are currently experiencing financial hardship.
Also referred to as the homeowner relief program, the bill allows certain qualified homeowners to temporarily pause mortgage payments. This process, known as mortgage forbearance, gives homeowners the chance to pay other debts without being penalized for missing a mortgage payment.
This is not the same as mortgage forgiveness; all homeowners who qualify for forbearance must still make up any missed payments once the forbearance period is over.
The mortgage relief program is open to homeowners with federally insured loans, including mortgages from the following services:
- Fannie Mae
- Freddie Mac
- FHA
- VA
- USDA
- HUD
Mortgage forbearance is only available to those who are experiencing a financial hardship directly related to the COVID-19 pandemic. For example, a homeowner who lost their job due to a government shutdown would qualify.
To receive mortgage assistance through the CARES act, you must reach out to your loan servicer and make a formal request for forbearance. It is important to continue to make your mortgage payments until forbearance is granted. If you miss payments, you could risk losing your home to foreclosure.
If you have a loan backed by the FHA, USDA, HUD or VA, you can make a request for mortgage forbearance as long as the National Emergency is in effect. The most recent renewal date for this declaration was on October 15, 2021. Once the end of the National Emergency has been declared, homeowners may no longer make formal requests for mortgage forbearance.
If your loan is backed by Fannie Mae or Freddie Mac, there is no deadline to request forbearance.
It is important to note that getting mortgage assistance through a forbearance period is only temporary. Most forbearance periods last between three and six months. However, you may qualify for an extension depending on certain factors.
Learn more about mortgage relief extensions and forbearance in the next slides.
