Press Release
☷Federal Housing Administration Launches New Option to Help Struggling Borrowers Keep Their Homes
U.S. Department of Housing and Urban Development ( By Press Release office)
Feb 23,2024
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The Federal Housing Administration ( FHA ) has introduced a new program called the Payment Supplement to help borrowers with FHA - insured mortgages who are behind on payments . This program allows mortgage servicers to temporarily reduce a borrower ' s monthly payment by up to 25% without changing the interest rate . It is designed for borrowers who cannot be helped by existing FHA options due to low interest rates . This new tool is part of FHA ' s efforts to prevent foreclosures and has already assisted over 1 . 6 million struggling homeowners . HUD Secretary Marcia L . Fudge emphasized the importance of using all available resources to help families stay in their homes . The Payment Supplement will use funds from a Partial Claim to bring borrowers current and reduce their monthly payments for up to three years . This option is open to all eligible borrowers who have not already used their Partial Claim allowance . Mortgage servicers can start using Payment Supplement starting on May 1 , 2024 , and must have it in place for all eligible borrowers by January 1 , 2025 . FHA also announced that they are extending their temporary loss mitigation options until April 30 , 2025 . These options were created as part of FHA ' s COVID - 19 recovery efforts and are available to all borrowers who are behind on their mortgage payments , regardless of the reason . Originally set to end on October 30 , 2024 , these options will now be available for longer .
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