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

C-Suite Strategies

UWM Renews Attack On CrossCountry Deal Ahead Of Vote

With Two Harbors shareholders set to vote June 23, UWM is again urging investors to reject CrossCountry's acquisition while the REIT argues UWM has failed to submit a revised proposal

UWM Holdings renewed its campaign to derail CrossCountry Mortgage's proposed acquisition of the mortgage REIT Two Harbors Investment Corp. on Monday, accusing the board of ignoring shareholders and refusing to engage with what UWM continues to call a superior offer.The lates...

Operations

UWM Rolls Out Doctor Loan Program

New offering provides up to 100% financing with no mortgage insurance for eligible healthcare professionals

United Wholesale Mortgage is expanding its product lineup with the launch of a Doctor Loan program designed to help medical professionals qualify for homeownership despite high student loan balances and limited savings for a down payment.The new program allows eligible healt...

Jul

New Orleans, LA

More from

FHA

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

Mortgage Delinquencies Climb In Fourth Quarter

Conventional delinquency rates remain historically low while FHA and VA delinquency rates grow

Analysis and Data

Feb 07, 2025

FHA Proposes Looser Boarder Income Requirements For Qualifying Borrowers

The proposed changes reduce acceptable rental income history from two years to 12 months, among other expansions of FHA guidelines