Mortgage update on forbearances and eligibility restrictions
In response to several weeks’ worth of advocacy efforts with the GSEs and the FHFA to address concerns about financing options for borrowers in forbearance, FHFA announced that some eligibility restrictions have been lifted for borrowers in COVID-19 forbearance.
Here are the changes:
- Borrowers are eligible to refinance or buy a new home if they are current on their mortgage, i.e., in forbearance but continued to make their mortgage payments or reinstated their mortgage.
- Borrowers are eligible to refinance or buy a new home three months after their forbearance ends and they have made three consecutive payments under their repayment plan, or payment deferral option or loan modification.
- Prior policy generally required borrowers in forbearance to wait 12 months before being eligible for new financing.
If you have any questions about the new forbearance guidelines, please feel free to contact us anytime!
The information contained herein (including but not limited to any description of TowneBank Mortgage, its affiliates and its lending programs and products, eligibility criteria, interest rates, fees, and all other loan terms) is subject to change without notice. This is not a commitment to lend.
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