Is Your Mortgage Covered by the CARES Act?

Your mortgage may be covered by the CARES Act

Federally backed mortgages are eligible for forbearance under the CARES Act

Is your mortgage covered by the CARES Act? If you have been impacted by Covid-19, then you can find out if your mortgage is covered by the CARES Act.  This provision allows borrows to take a forbearance on their mortgage. Keep reading to find out if you qualify.

CARES Act Provisions

Here is an overview of what the CARES Act provides concerning forbearance of mortgage loans:

Forbearance on your mortgage will be granted for 180 days in the form of skipped or reduced payments during that period on federally backed mortgage loans to individuals who have been directly or indirectly experiencing financial hardship due to Covid-19.

Applying for forbearance can be done by simply contacting your lender. They will ask you for your loan and account numbers, and they may also ask for some additional information. Note that this program covers federally backed mortgages only. If you have a mortgage through a private lender, then your loan does not qualify for this program. Some lenders were extended forbearance to all their loans, but you will need to contact your mortgage provider to find out if they are offering assistance.

There are no fees or penalties associated with obtaining forbearance. You will have to make up the payments in the future, however. More on that later.

Eligibility of Mortgages Covered by the CARES Act

The first step is to find out if your mortgage is eligible for forbearance under the CARES Act. As stated earlier, the CARES ACT has extended forbearance to federally backed loans only. But you still may qualify for forbearance if your lender is extending it to all their mortgage loans. The best way to know for sure is to contact your lender and see what options may exist for you.

Forbearance not Forgiveness

Remember that forbearance means that your payments will be reduced or delayed. You will still need to pay back the loan in full eventually. Congress forbids lenders from requiring borrows to pay back the waived payments all at once at the end of the loan. However, you will have to either make larger payments once the forbearance period ends, or you will have to make additional payments at the end of the loan. For example, if you choose to waive your payments for 6 months, then you will be subject to 6 additional payments once the mortgage ends.


Covid-19 has been financially devastating to many families. The CARES Act has a provision that allows you to take up to 180 days of forbearance on your mortgage if you have been impacted by the pandemic. The provision only covers federally backed loans, but many lenders were extending forbearance or other assistance programs to all their loans. To find out if your mortgage is covered by the CARES Act you will need to call your lender.

Forbearance is a big decision, but if you need help, then it can be a good option. Remember that you will need to make up the waived payments in the future. Forbearance is not loan forgiveness. Help is only a phone call away.

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