FHFA: Borrowers in Forbearance Eligible to Refinance, Buy a Home



Borrowers who have taken forbearance can nevertheless take benefit of record low mortgage prices for buying a domestic or refinancing their current domestic, the Federal Housing Finance Agency announced Tuesday. The FHFA made the statement to try to solve a  confusion about those who've taken forbearance all through the COVID-19 pandemic, which now totals about 4.1 million owners.

Fannie Mae and Freddie Mac, which the FHFA oversees, will allow borrowers who went into forbearance due to the pandemic to refinance their mortgage or purchase a new domestic as long as they’ve reinstated their loan and made three consecutive months of their reimbursement plan, payment deferral option, or mortgage change from their neglected payments.

Also, there's no ready period for borrowers who requested forbearance but in the long run were able to make their payment in full and on time, Fannie Mae notes.
“Homeowners who are in COVID-19 forbearance but continue to make their mortgage payment will not be penalized,” said FHFA Director Mark Calabria. “Today’s action allows homeowners to access record low mortgage rates and keeps the mortgage market functioning as effectively as possible.”.

Guillermo "Bill" Sanjurjo Realtor® https://guillermo.realtor 12955 SW 42 St Suite 2, Miami, FL 33175 Cell: 786-232-1400
Location: Miami, FL, USA

Comments

Post a Comment

Your comments are always welcomed and appreciated. Thank you.

Popular posts from this blog

Challenges for Miami Homebuyers

Image
Navigating the New Real Estate Landscape:  Challenges for Miami Homebuyers Miami Homebuyers Facing Obstacles The real estate market in Miami has become increasingly challenging for homebuyers. Over the past few years, housing prices have skyrocketed, while mortgage interest rates have risen to unexpected levels. Unfortunately, wages haven’t kept pace with inflation, making it more difficult for many to afford their dream home. As if these challenges weren’t enough, new rules from the National Association of Realtors (NAR) are set to change how commissions are handled in real estate transactions, adding another layer of complexity for buyers. The Impact of the NAR Settlement Rules Beginning this Saturday, real estate agents listing homes on the Multiple Listing Service (MLS), a widely used database for agents, will no longer be allowed to advertise any compensation to buyer's agents. Previously, it was common for sellers to pay commissions to real estate agents on both sides of the
Read more

Know your rights under mortgage payment forberance

Image
Photo by  Andrea Piacquadio  from  Pexels To combat ongoing misinformation, the Federal Housing Finance Agency (FHFA) reiterated that borrowers in forbearance with a  Fannie Mae or Freddie  Mac-backed mortgage are not required to repay the missed payments in one lump sum. According to the McDash Flash Forbearance Tracker from  Black Knight , as of April 23, 2020, more than 3.4 million homeowners, or 6.4% of all mortgages, have entered into COVID-19 mortgage forbearance plans. “During this national health emergency, no one should be worried about losing their home," said Director Mark Calabria. “No lump sum is required at the end of a borrower's forbearance plan for Enterprise-backed mortgages. To help homeowners navigate the forbearance process, FHFA partnered with CFPB on the Borrower Protection Program to provide homeowners accurate information about forbearance and address concerns noted in some consumer complaints. While today's statement only covers Fannie Ma
Read more