COVID-19: What are the options for borrowers, impacted by the COVID-19 pandemic, who were more than 30 days delinquent on March 1, 2020?

All FHA-borrowers impacted by the COVID-19 pandemic, whether directly or indirectly, qualify for the COVID-19 Forbearance. The COVID-19 Standalone Partial Claim is available to owner-occupant borrowers whose mortgages were current or less than 30 days delinquent as of March 1, 2020, the declared date of the COVID-19 pandemic. Borrowers who were more than 30 days past due as of March 1, 2020, and who are in need of loss mitigation assistance, must be reviewed for FHA’s standard loss mitigation options (forbearance, loan modification, and FHA-HAMP).

Recently the HUD Deputy Secretary Brian Montgomery issued a YouTube video message speaking directly to homeowners with FHA-insured mortgages experiencing financial hardships caused by the COVID-19 emergency.
The video message can be viewed using the following links:

HUD Policy Determination – COVID-19 guidance


All policy information contained in this knowledge base article is based upon the referenced HUD policy document. Any lending or insuring decisions should adhere to the specific information contained in that underlying policy document.

Topic Number: KA-05478