USDA extends COVID-19 relief for single-family housing borrowers
The U.S. Department of Agriculture announced it is extending the COVID-19 Special Relief Measure for USDA’s Single-Family Housing Guaranteed Loan borrowers.
The special relief measure provides new alternatives to help borrowers get up to a 20% reduction in their monthly mortgage principal and interest payments, said Luis R. García, USDA Rural Development acting state director for Puerto Rico.
“New options include an interest rate reduction, term extension and a mortgage recovery advance, which can help cover past due mortgage payments and related costs,” he said.
Borrowers will first be assessed for an interest rate reduction, and if additional relief is still needed, the borrowers will be considered for a combination rate reduction and term extension.
In cases where a combination of rate reduction and term extension is not enough to achieve a 20% payment reduction, a third option combining the rate reduction and term extension with a mortgage recovery advance may be used to reach the target payment.