Announcement 20-0052: FHA Guidance for Borrowers Coming Out of Forbearance


HUD currently has not issued any guidance regarding borrowers in forbearance who did not continue to make their payments as agreed; therefore, until further notice Carrington Mortgage Services, LLC (CMS) will not offer new FHA financing to borrowers who did not make their Forbearance payment for the actual month due.

In cases of borrowers coming out of forbearance who continued to make their payments as agreed, and who are not delinquent, there is no waiting period or eligibility restrictions for underwriting a new FHA loan.

As reminder, HUD considers a mortgage payment to be delinquent if not paid within the month due. Borrowers who are impacted by the current COVID-19 pandemic are entitled to request forbearance under the CARES Act to temporarily postpone or reduce the amount of their mortgage payments. Forbearance is not payment forgiveness and borrowers can, at any time they choose, shorten the forbearance and resume repayment of the loan.

Please note: HUD does not consider the COVID-19 pandemic as a Major Disaster; therefore, the normal forbearance guidance followed for Major Disasters is not applicable.


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