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CARES Act Forbearance Fact Sheet 

for Mortgagees and Servicers

of FHA, VA, or USDA Loans

 

A resource for servicers with loans insured or guaranteed by the Federal Housing Administration (FHA), the 

Department of Veterans Affairs (VA), or the Rural Housing Service (RHS)

Coronavirus Relief, and Economic Security Act (CARES Act) Mortgage Payment Forbearance

The CARES Act provides a mortgage payment forbearance option for all borrowers who, either directly or indirectly, 

suffer a financial hardship due to the novel coronavirus (COVID-19) national emergency.

Guidance for Assisting Borrowers

If a borrower can still make their mortgage payment, request that they continue to do so. However, if the borrower

requests a forbearance, a servicer must give them the forbearance requested.

• No documentation is required to prove the hardship beyond the borrower asserting that they are suffering from 

a hardship.

• This relief is available to anyone who has a federally-backed mortgage, regardless of delinquency status.

Under the CARES Act, borrowers are entitled to request an initial forbearance of their monthly mortgage payments for 

up to 180 days, and may request up to an additional 180 days.

• Servicers must approve the forbearance for the amount and time that the borrower requests.

• Under the CARES Act, this is done at the borrowers’ request and for as long as they request, up to 360 days in 

total (initial up to 180 days and then up to another 180 days, if requested)

• Servicers should educate the borrower on the impact of longer forbearances. Servicers may discuss shorter 

initial forbearances with the borrower, such as 3 months for example, and work up or down depending on the 

needs and wants of the borrower.

• Servicers should ensure that borrowers understand that the missed payments must be repaid, although it may 

be paid back over time.

• Servicers should educate the borrower on what options will be available to the borrower to make repayments.

• Inform borrowers that they can contact you when their hardship is over or resume making their regular monthly 

mortgage payment to end the forbearance, and discuss what repayment options are available. 
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CARES Act Forbearance Fact Sheet 

for Mortgagees and Servicers

of FHA, VA, or USDA Loans

Loss Mitigation options will vary based on the program it is insured or guaranteed under.

Federal Housing Administration Mortgages

FHA does not require lump sum repayment at the end of the forbearance. FHA has developed 

the COVID-19 Standalone Partial Claim to assist with repayment. If borrowers were current or 

less than 30 days delinquent as of March 1, 2020, they may be entitled to this option. A 

partial claim is a zero interest, no fee, junior lien on the borrower’s property that will become 

payable when the borrower sells their home, pays off their mortgage, or their mortgage 

otherwise terminates. If the borrower does not qualify for the COVID-19 Standalone Partial Claim, FHA offers other tools 

to help them repay their missed payments over time. For more information on Federal Housing Administration 

Mortgages: please email answers@hud.gov, call 1-800-CALL-FHA (1-800-225-5342), or visit www.hud.gov.

Veterans Affairs Mortgages

Servicers of VA loans cannot require borrowers to make a lump sum payment immediately after a 

borrower exits a CARES Act forbearance. VA has a suite of loss mitigation options detailed in 

Chapter 5 of the VA Servicer Handbook M26-4 designed to assist Veteran borrowers in bringing 

their home loan current. In addition to the regular loss mitigation options, VA is making available 

all disaster loss mitigation options to further assist borrowers affected by the novel coronavirus 

(COVID-19) pandemic.

For more information: please see VA’s frequently asked questions on forbearances covered under the CARES Ac. In 

addition, you may call (877) 827-3702 to contact a VA Regional Loan Center or visit our website at 

https://www.benefits.va.gov/homeloans/index.asp.

Rural Housing Service Guaranteed Loan Mortgages

RHS does not require a lump sum payment at the end of the forbearance. Lenders should work 

with the borrowers to determine if they can resume making regular payments and, if so, either 

offer an affordable repayment plan or term extension to defer any missed payments to the end of 

the loan. If the borrower is unable to resume making regular payments, the lender should evaluate 

the borrower for all available loss mitigation options outlined in Handbook-1-3555. For more information on servicing 

Rural Housing Guaranteed Loan Mortgages, email sfhglpservicing@usda.gov. For all other general inquiries on policy, email 

SFHGLD.Program@usda.gov or visit our website at www.rd.usda.gov/programs-services/single-family-housing-guaranteedloan-program. Visit USDA Rural Development’s coronavirus website for more information on forbearance for USDA 

guaranteed loans.

Other Resources

• All homeowners (including those with FHA, VA and USDA loans) can use Consumer Financial Protection Bureau's 

(CFPB) “Find a Counselor” tool to find counseling agencies approved by the Department of Housing and Urban 

Development (HUD) in your area. Online counseling is available.

• Borrowers can also call the HOPETM Hotline, open 24 hours a day, seven days a week, at (888) 995-HOPE (4673).
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CARES Act Forbearance Fact Sheet 

for Mortgagees and Servicers

of FHA, VA, or USDA Loans

Additional finance-related information for Borrowers 

Visit CFPB’s coronavirus website for mortgage relief options, tips to keep up on your finances, and more. 

What if the borrower does not have a government-backed home loan?

• CFPB’s website has information and links on mortgage relief options that can help the borrower determine if 

other relief is available (for example, if the borrower’s loan is owned by Fannie Mae or Freddie Mac).