Mortgage Pause Program: Is it real, and what’s the catch?

Dreaming of owning a home? You’re not alone. But with prices so high, it can feel impossible. Mortgage rates aren’t helping either.

Then, you see it. A post promising you can pause mortgage payments for a year! Sounds amazing, right? One video even calls it a “game-changing update. ” Buy a fixer-upper, renovate, and then start paying?

But wait a minute. Is it real? And what’s the catch? Let’s dig in.

The Truth About Pausing Payments

Yes, a program exists. But it’s not quite as simple as those videos make it seem. Here’s what you need to know:

• It’s for primary residences only. This isn’t for investment properties. You have to live there.
• You don’t decide. A HUD counselor determines if you qualify.
• You’re still paying. The payments aren’t paused. They’re added to your loan. Think of it like hitting “snooze” on your alarm – it’s coming!
• Uninhabitable is key. You can only defer payments while the house is, well, unlivable.

It’s not free money. It’s more like a delayed payment plan. Like when you buy something on a credit card. You still have to pay it back eventually.

Old News, New Twist

Here’s another thing: this loan isn’t brand new. It’s been around for years! The difference? You can now finance those payments for up to 12 months, instead of just six. It helps with cash flow during renovations. But remember, you’ll pay those payments back later.

The Bottom Line

This program can be helpful. Especially if you’re buying a fixer-upper. It gives you some breathing room. But don’t be fooled. You’re not getting out of paying. You’re just delaying it.