COVID-19 has created widespread economic instability, with 38.6 million Americans filing for financial assistance in just nine weeks. Record numbers of Americans have been impacted by job loss or reduction of hours, leaving many homeowners with no choice but to temporarily postpone their mortgage payments. Since the novel coronavirus has had such a staggering impact on the global economy, government-sponsored enterprises Fannie Mae and Freddie Mac have updated eligibility requirements for borrowers in forbearance. If you’re currently in forbearance due to hardship related to COVID-19, you may still be eligible to refinance your mortgage or purchase a home. Here, I outline the details of the new eligibility requirements.
About the new flexibilities
If you’re interested in refinancing your home or buying a new property but you’ve had to delay mortgage payments, it may be possible to secure financing under the new guidelines. Fannie Mae and Freddie Mac’s temporary guidelines are as follows:
• Homeowners in a loss mitigation solution are eligible for a new refinance or mortgage purchase after three on-time payments.
• For borrowers who have missed payments due to COVID-19 but have caught up on outstanding payments, there is no waiting period.
• There is no waiting period for borrowers who requested forbearance but have made all payments on-time and in full.
The new eligibility requirements for refinancing or purchasing join additional relief options from these enterprises that are available for homeowners affected by COVID-19. Other assistance measures from Fannie Mae and Freddie Mac include the suspension of foreclosures and evictions until June 30, 2020, short-term repayment plans, a payment deferral option and more.
If your ability to pay your mortgage has been impacted by the novel coronavirus, Fannie Mae and Freddie Mac offer convenient online tools to help you find assistance. Visit knowyouroptions.com or use Freddie Mac’s loan lookup tool to learn more about ways to get help.
The coronavirus pandemic has caused significant upheaval around the globe. If you have been in or are currently in forbearance, you may still be eligible to purchase or refinance.
By Michaela Phillips. Michaela is the Vice President of Mortgage Lending at Guaranteed Rate, Inc. Contact Michaela at 303.443.6292, e-mail [email protected] or visit michaelaphillips.com. NMLS: 312874.