Stakeholder Announcement

USDA Launches Program to Increase Economic Safety Net for Rural Home Loan Borrowers Facing Financial Hardship

Program Expands Servicing Options to Combat Unprecedented Higher Interest Rates and Ensure Borrowers Remain in Their Homes

WASHINGTON, July 24, 2024 – U.S. Department of Agriculture (USDA) Rural Development Under Secretary Dr. Basil Gooden today announced that USDA is launching a program to increase economic safety net options for rural home loan borrowers facing financial hardship.

Through the new Payment Supplement Account, USDA is expanding servicing options to combat unprecedented higher interest rates, minimize the risk of foreclosure and help borrowers remain in their homes.

For instance, lenders may use funding from this program to help borrowers who are behind on their mortgages by providing monthly relief payments until their loans are current. Lenders may also use the funding to help borrowers through their financial hardship by making supplemental monthly payments toward their loan’s principal balance for up to three years.

To learn more, read full Stakeholder Announcement.