FHFA Announces Refinance and Home Purchase Eligibility for Borrowers in Forbearance

As an update to my article on May 5th, FHFA has just announced great news for borrowers. Many have been caught up in the unintended consequences of utilizing the Forbearance option. The worst of those have been fixed and below is a quick summary of what is in today's news release. Better late than never!

https://www.fhfa.gov/Media/PublicAffairs/Pages/FHFA-Announces-Refinance-and-Home-Purchase-Eligibility-for-Borrowers-in-Forbearance.aspx

1. Borrowers are eligible to refinance or buy a new home if they are current on their mortgage (i.e. in forbearance but continued to make their mortgage payments or reinstated their mortgage)
2. Borrowers are eligible to refinance or buy a new home three months after their forbearance ends and they have made three consecutive payments under their repayment plan, or payment deferral option or loan modification.