A Borrower who was granted mortgage forbearance due to COVID-19 may be eligible for a new FHA-insured Mortgage provided the Borrower has made payments as agreed and the Forbearance Plan is terminated at, or prior to, closing. If the Borrower has made less than 3 consecutive monthly housing payments since completion of a mortgage Forbearance Plan, the new FHA- insured loan must be manually underwritten following Manual Guidelines in Handbook 4000.1.
For additional information, see:
Handbook 4000.1, Sections II.A.4.b.iii(K) and II.A.5.a.iii(C) at: https://www.hud.gov/program_offices/administration/hudclips/handbooks/hsgh