FHA Gives Borrowers Another Solution For Mortgage Relief

May 06, 2020

Person holding a repayment plan. Credit: iStock.com/designer491

Director of Events

Borrowers Able To Convert Missed Payments Into Interest-Free Loans

The Federal Housing Administration has come up with another way to help borrowers who are struggling to pay their mortgages during the COVID-19 pandemic. The FHA is giving borrowers who request forbearance on their FHA-backed loan, the ability to convert missed payments into interest-free loans that will be due in full when they sell, refinance their mortgage or reach the end of their loan term, according to a Newsday report.

"The new interest-free loan program 'is a very fair repayment plan' for borrowers," Peter Elkowitz, chief executive of the Long Island Housing Partnership in Hauppauge, said Tuesday, according to the report. "It’s not asking them for an immediate payment."

According to the report, borrowers are already on board with the new approach. One borrower, David Hernandez, told Newsday that it would be more helpful and realistic as opposed to paying a lump-sum payment at the end of the forbearance period.

Under the CARES Act, FHA borrowers have up to six months of mortgage forbearance should they need it and an additional six-month extension if the pandemic continues to cause financial hardship.

Click here to read more about the FHA's new repayment plan.

About the author

Navi Persaud

Director of Events

Navi Persaud is Director of Events at NMP.

Link copied

Published

May 06, 2020

Operations

Zillow Covers FHA Down Payments, Steps Up Competition For Purchase Loans

The five-year forgivable loan gives Zillow another incentive to attract borrowers as it expands its mortgage business

Zillow Home Loans is offering to cover the entire minimum down payment for eligible FHA borrowers, adding a new financing incentive to its growing mortgage business and raising the competitive stakes for independent loan originators.The program, announced Wednesday, provides...

Home Equity

Homeowners Are Delaying Repairs. Lenders Could Face The Consequences.

A new LendingTree survey finds homeowners postponing essential maintenance as costs mount, raising concerns about property conditions, mortgage eligibility, and the limits of home equity financing

More than one-third of U.S. homeowners have postponed needed repairs or maintenance over the past two years, according to a new LendingTree survey, and some are finding that waiting only makes the problems worse.Among homeowners with outstanding repairs, 34% say delays have ...

Feb

Austin, TX

More from

FHA

Trump Taps FHA Insider Matt Jones To Lead Agency

The former MBA policy executive would oversee FHA underwriting, servicing, and credit-score changes that directly affect lenders and borrowers

Regulation and Compliance

Sep 16, 2026

FHA Sets Jan. 1 Start For FICO 10T And VantageScore 4.0

Lenders will gain competing modern scoring options, but borrowers may not see both offered everywhere

FHA

Sep 11, 2026

CHLA Wants Ginnie Mae Liquidity Backstop Ready Before Next Crisis

Proposed G-TALF facility could help prevent a servicing cash crunch from constraining FHA, VA, and USDA lending

Regulation and Compliance

Sep 09, 2026

The Liquidity Squeeze In FHA Servicing

The long tail of loss mitigation is now coming into view as FHA’s post-pandemic relief tools give way to repeat defaults, exhausted options, and a swelling foreclosure pipeline

FHA

May 20, 2026

Late-Stage Delinquencies Rise As Originators Face Growing Credit Quality Headwinds

New Experian data shows rising late-stage mortgage delinquencies are signaling emerging credit stress for originators, even as HELOC performance remains relatively stable

FHA

Jan 25, 2026

FHA To Lay Off 40% Of Workforce

Mass terminations across the federal government expected to hit federal mortgage insurer

FHA

Feb 18, 2025

Popular