The U.S. Department of Agriculture extended the moratorium on foreclosures from properties financed by USDA Single-Family Housing Direct and Guaranteed loans through July 31.
These actions will bring relief to hundreds-of-thousands of residents in rural America who have housing loans through USDA.
“The United States is recovering from a nationwide housing affordability crisis brought on by the COVID-19 pandemic. To support this recovery, USDA is taking this important action today to extend relief to the hundreds-of-thousands of individuals and families holding USDA Single-Family Housing loans,” USDA Deputy Under Secretary for Rural Development Justin Maxson said. “Actions like the one we’re announcing today are part of President Biden’s strategy to get Americans vaccinated and the economy back on track. Together, these coordinated actions will enable more homeowners with federally-backed mortgages to remain in their homes and build equity for years to come as we transition back to a functional housing market.”
Beyond July 31, the USDA will continue to support homeowners experiencing financial hardship due to the pandemic by making loss mitigation options available to help keep them in their homes.
Homeowners and renters may visit www.consumerfinance.gov/housing for up-to-date information on their relief options, protections, and key deadlines from USDA, the Department of Housing and Urban Development, the Department of Veterans Affairs, the Federal Housing Finance Agency, and the Consumer Financial Protection Bureau.
COVID-19 has had a lasting impact on rural America. Families have lost their homes, students have resorted to unconventional solutions to access schoolwork online, the need for food assistance has grown, and access to COVID-19 testing and vaccinations has been limited. The American Rescue Plan Act implements funding that invests in the people of rural America now and beyond the July 31 moratorium extension. It provides:
$100 million through September 2022 in rental assistance for very-low-income tenants.
$39 million through September 2023 to help refinance direct loans under the Single-Family Housing Loan Program and the Single-Family Housing Repair Loan program.
$500 million in Community Facilities Program funds to help rural hospitals and local communities broaden access to COVID-19 vaccines and food assistance.
In addition to programs facilitated by USDA, the American Rescue Plan Act provides significant investments into rural communities by expanding internet connectivity. It also establishes a homeowner assistance fund to assist struggling homeowners with mortgage payments, property taxes, property insurance, utilities and other housing-related costs.
Under the Biden-Harris Administration, Rural Development provides loans and grants to help expand economic opportunities, create jobs and improve the quality of life for millions of Americans in rural areas. This assistance supports infrastructure improvements; business development; housing; community facilities such as schools, public safety and health care; and high-speed internet access in rural, Tribal and high-poverty areas. For more information, visit www.rd.usda.gov.