"Today, the Federal Housing Administration (FHA) published Mortgagee Letter (ML) 2020-30, FHA Underwriting Guidelines for Borrowers with Previous Mortgage Payment Forbearance. The ML informs mortgagees of underwriting guidelines for homeowners who were granted a mortgage forbearance due to the COVID-19 National Emergency. Additionally, this ML defines the requirements that borrowers must meet to request a new FHA-insured mortgage after successfully completing their mortgage payment forbearance period.

Borrowers granted mortgage payment forbearance may be eligible for a new FHA-insured mortgage provided they:

• continued to make regularly scheduled mortgage payments and the forbearance is terminated; or
• completed forbearance and made at least 12 consecutive monthly mortgage payments after forbearance or cash-out refinances; or
• completed forbearance and made at least three consecutive monthly mortgage payments after forbearance for purchase mortgages and no cash-out refinances; or
• completed forbearance and made less than three consecutive monthly mortgage payments after forbearance for credit qualifying streamline refinances.

Additionally, if a borrower entered into a modification agreement on an FHA mortgage, they must have made six payments under the modification to be eligible for a streamline refinance. 

This guidance applies to single family forward mortgage programs only and updates requirements in the Single Family Housing Policy Handbook 4000.1 (SF Handbook) as indicated in the ML. These updates will be incorporated into the applicable sections of the SF Handbook in the coming months.

Quick Links:

• View Mortgagee Letter 2020-30 and all other archived Mortgagee Letters at:  https://www.hud.gov/program_offices/administration/hudclips/letters/mortgagee
• Access the online or PDF versions of the Single Family Housing Policy Handbook 4000.1 at:  http://portal.hud.gov/hudportal/HUD?src=/program_offices/administration/hudclips/handbooks/hsgh "

- Directly From the FHA.