USDA Announces Loan Forbearance Up to 1 Year
In accordance with the newly-enacted stimulus law, the U.S. Department of Agriculture (USDA) announced today that any borrowers experiencing financial hardship caused by the COVID-19 pandemic shall receive immediate forbearance of their guaranteed loan payment for a period of up to 180 days. In addition, the forbearance period may be extended up to an additional 180 days at the borrower’s request.
This applies to loans taken out under the USDA’s Single Family Housing Guaranteed Loan Program (SFHGLP). The 60-day foreclosure and eviction moratorium for the SFHGLP announced by USDA on March 19 remains unchanged and in effect.
During the two six-month forbearance options outlined above, no accrual of fees, penalties or interest may be charged to the borrower beyond the amounts calculated as if the borrower had made all contractual payments in a timely fashion.
Upon completion of the forbearance, the lender shall communicate with the borrower and determine if the borrower is able to resume making regular contractual payments. If so, the lender shall offer the borrower a written re-payment plan to resolve any amount due, or at the borrower’s request, extend the loan term for a period that is at least the length of the forbearance.
If the lender determines the borrower is financially unable to resume making contractual payments at the end of the forbearance, the borrower shall be evaluated for all available options presented in the Loss Mitigation Guide which is found at Attachment 18-A in Chapter 18 of the USDA 3555 Technical Handbook.
For more information, contact Curtis Milton at NAHB at 1-800-368-5242 x8597.
Latest from NAHBNow
Aug 21, 2025
New and Existing Homes Remain Largely Unaffordable in Second QuarterWhile new homes remain largely unaffordable, builder efforts to improve housing affordability paid dividends in the second quarter of 2025, according to the latest data from the NAHB/Wells Fargo Cost of Housing Index (CHI). The CHI results from the second quarter of 2025 show that a family earning the nation’s median income of $104,200 needed 36% of its income to cover the mortgage payment on a median-priced new home. Low-income families, defined as those earning only 50% of median income, would have to spend 71% of their earnings to pay for the same new home.
Aug 20, 2025
Custom Home Building Grows as Broader Housing Market StrugglesAn analysis of census data by NAHB economists shows that custom home building grew 4% in the second quarter of 2025 as high interest rates and home prices suppress demand for traditional spec home production.
Latest Economic News
Aug 21, 2025
Existing Home Sales Rise in JulyExisting home sales rebounded in July as mortgage rates retreated from the recent peak and home price growth slowed, according to the National Association of Realtors (NAR).
Aug 21, 2025
New and Existing Homes Remain Largely Unaffordable in Second QuarterWhile new homes remain largely unaffordable, builder efforts to improve housing affordability paid dividends in the second quarter of 2025, according to the latest data from the National Association of Home Builders (NAHB)/Wells Fargo Cost of Housing Index (CHI).
Aug 20, 2025
Retreat for Single-Family Built-for-Rent HousingSingle-family built-for-rent construction fell back in the second quarter, as a higher cost of financing crowded out development activity.