What types of loans are covered under the CARES Act? Under the CARES Act, mortgage forbearance relief must be offered to anyone experiencing a financial hardship due to COVID-19 for all federally backed mortgages. This includes loans guaranteed by the FHA, USDA and VA, among others.
Also, can I stop paying my mortgage during Covid?
Homeowners with federally backed loans have the right to ask for and receive a forbearance period for up to 180 days—which means you can pause or reduce your mortgage payments for up to six months.
Considering this, what does mortgage moratorium mean?
A moratorium period is when your lender allows you to stop making payments for a specific period of time. A moratorium is similar to a deferment or forbearance.
What is a mortgage forbearance?
Forbearance is when your mortgage servicer or lender allows you to pause or reduce your mortgage payments for a limited time while you build back your finances.