Mortgage assistance for borrowers affected by the coronavirus

We’ll update this page as new details emerge in the world’s response to COVID-19.

As businesses and offices close their doors to comply with government shutdowns to slow the spread of COVID-19, more Americans are finding themselves without a regular paycheck. Fortunately, a growing number of programs are available to help homeowners struggling to make their mortgage payments.

3 types of mortgage assistance available

The assistance available to you depends on the type of loan you have.

US banks and lenders

If you find yourself in a situation where you’re at risk of missing your mortgage payments, contact your bank or lender immediately. Most companies are willing to work with you on a plan to get back on your feet.

Banks and companies offering help to those affected by the coronavirus

Help ranges from extended due dates to waived fees and more. Call your bank or mortgage company for the most current assistance for your specific loan. The contact information below represents a sample of mortgage lenders offering assistance.

Mortgage assistance programs by state

Most states support programs designed to help struggling homeowners avoid foreclosure and stay in their homes.

Federal Housing Administration

Through its Making Home Affordable program, the Federal Housing Administration (FHA) supports a suite of assistance options designed to help distressed borrowers stay in their homes, including those affected by the coronavirus.

Call the FHA Outreach Center at 800-225-5342 to get started.

Fannie Mae and Freddie Mac

Fannie Mae and Freddie Mac offer forbearance — or delayed payments — to homeowners struggling to make payments because of temporary hardship.

Eligible hardships include unemployment, a reduction in income and disasters — like the coronavirus — that affect your place of employment. If Fannie Mae or Freddie Mac owns your mortgage, contact your mortgage servicer to see if you qualify for a forbearance plan.

Risks of mortgage assistance programs

When you’re worried about how you’ll make your next payment, your primary concern is avoiding foreclosure so you can stay in your home. So you’re not caught off guard, prepare for two possible outcomes that come along with these programs:

• May lower your credit score. Your score may decrease slightly if your lender reports deferred payments from a forbearance plan as delinquent. Loan modifications are sometimes considered debt settlement, which can also lower your score.
• Can eat into your escrow. If you pay your insurance premiums or taxes from an escrow account, programs like forbearance plans may result in your account coming up short. Talk with your lender to learn how to prevent owing more money to top it back up.

Other ways to manage your finances

In addition to seeking help for your mortgage, you may want to look for assistance programs for other financial needs:

• Credit card relief. Several credit card issuers are offering assistance and support programs to cardholders.
• Student loan support. Interest for most government student loans is reduced to 0% in response to COVID-19. Deferment and forbearance options for private student loans vary, but borrowers may be eligible for certain programs no matter the servicer or lender.
• Small business loans. Across the country, many small businesses are struggling with decreased revenue. Small business loans are available to those who qualify.
• Personal loan assistance. Borrowers should reach out to their lenders to see what financial assistance is available for personal loan payments.

Bottom line

Federal and state mortgage assistance programs can help homeowners struggling to make their mortgage payments, including those affected by the coronavirus. But let your first step be a call to your lender to explain your situation and learn about relief programs you might be eligible for. And make sure you understand the full cost of deferring repayments before you sign up.

Frequently asked questions

• What is forbearance?

  When used in the context of mortgages, forbearance is where a lender and a homeowner agree to a mortgage plan designed to remove the threat of foreclosure. A forbearance agreement can lower your monthly payments or suspend payments for up to six months. The borrower and mortgage company agree on a repayment plan so that once this period is up, the borrower resumes normal payments in full and catches up on the previously deferred amount through extra payments, a one-time payment or through loan modification.