USDA Extends Foreclosure and Eviction Moratorium, Forbearance Options for Single Family Housing Direct and Guaranteed Loan Borrowers

Erin McDuff
Release Date
Feb 17, 2021

Foreclosure and Eviction Moratorium Extension:

The U.S. Department of Agriculture (USDA) Rural Development is extending its foreclosure and eviction moratorium for all Single Family Housing direct and guaranteed home loans through June 30, 2021, to help rural homeowners affected by the COVID-19 pandemic.

The moratorium prohibits:

  • The initiation of foreclosures or completion of foreclosures already in process, excluding on vacant and abandoned properties.
  • Evictions of homeowners from properties bought with a USDA direct or guaranteed home loan.

Mortgage Payment Forbearance:

Single Family Housing Direct Loans

USDA direct home loan borrowers who are experiencing financial hardship due to the pandemic may submit requests through June 30, 2021, for an initial forbearance period of up to 180 days. The homeowner may then request an extension of up to an additional 180 days.

Borrowers who received an initial forbearance under the CARES Act before June 30, 2020, may be granted up to two additional three-month forbearance periods. The homeowner must request each extension individually.

Borrowers who receive a COVID-19 forbearance under this guidance may have the interest that accrued on missed payments during the forbearance period waived. At the conclusion of the forbearance period, loans may be reamoratized to incorporate the cost of the missed payments into the remaining monthly mortgage payments.

To inquire about forbearance on a USDA direct home loan, contact Rural Development's Customer Service Center at 1-800-793-8861 or

Single Family Housing Guaranteed Loans

Lenders of USDA guaranteed home loans are expected to grant mortgage payment forbearance to any borrower who requests initial forbearance by June 30, 2021, and attests verbally or in writing to financial hardship caused by the COVID-19 pandemic. The initial forbearance period may be up to 180 days. The homeowner may then request an extension of up to an additional 180 days. Loan servicers seeking to assist USDA guaranteed loan borrowers may also pursue any of the relief options referenced in Chapter 18 of the Technical Assistance Handbook-1-3555.

During the forbearance period, no accrual of fees, penalties, or interest may be charged to the borrower beyond the amounts calculated as if the borrower had made all contractual payments in a timely fashion.

Upon completion of the forbearance, if the borrower can resume making regular payments, they will be offered either an affordable repayment plan or term extension to defer any missed payments to the end of the loan. If the borrower is unable to resume making regular payments, the borrower will be evaluated for all available options in HB-1-3555. The special relief measures outlined in Chapter 18, Section 5 “Assistance in Natural Disasters” will apply. These options include term extensions, capitalization, and a mortgage recovery advance.

After the conclusion of this moratorium, if the lender decides to proceed with foreclosure, the period for initiating foreclosures has been extended from 90 to 180 days.

Questions regarding guaranteed home loan policy and this announcement may be directed to the National Office Division at or (202) 720-1452.

For more information...

For more information on USDA Rural Development's actions to support customers impacted by COVID-19, visit

For questions about existing USDA direct mortgage loans, contact Rural Development's Customer Service Center at 1-800-793-8861 or

For questions about USDA guaranteed home loans, contact the National Office Division at or (202) 720-1452.