White House announces new assistance package for homeowners with government-backed mortgages
In an official statement on Friday, the White House announced that new loan modifications and payment reductions will be provided for homeowners who have been negatively impacted by the COVID-19 pandemic.
“Homeowners with government-backed mortgages that have been negatively impacted by the pandemic will now receive enhanced assistance, especially if they are looking for work, re-training, having trouble catching up on back taxes and insurance, or are continuing to experience hardship for another reason.” It said in the statement.
Homeowners with mortgages backed by Development (HUD), Department of Agriculture (USDA), and Department of Veterans Affairs (VA) will get a reduction of 25% in borrowers’ monthly principal and interest (P&I) payments.
According to the statement, the new assistance package will extend the term of the mortgage to 360 months at the market rate for homeowners who cannot resume making their current monthly mortgage payments.
According to USA Today, borrowers who hold federally backed mortgages can delay payments for up to 18 months.
The moratorium on eviction of renters was extended by 30 days by the Centers for Disease Control and Prevention, citing the health threats posed by COVID-19. The renter protections that were announced previously, were set to expire on July 31.
