Borrowers who requested forbearance on mortgages backed by Fannie Mae or Freddie Mac will still be able to refinance or buy a new home under certain conditions, the Federal Housing Finance Agency announced this morning.

The FHFA has issued temporary guidance allowing borrowers to refinance or buy a new home if they are current on their mortgage, meaning they are in forbearance but continued to make their mortgage payments or reinstated their mortgage.

Borrowers are eligible to refinance or buy a new home three months after their forbearance ends and they have made three consecutive payments under their repayment plan, payment deferral option or loan modification.

“Homeowners who are in COVID-19 forbearance but continue to make their mortgage payment will not be penalized,” Director Mark Calabria, said in a statement. “Today’s action allows homeowners to access record low mortgage rates and keeps the mortgage market functioning as efficiently as possible.”

FHFA also extended Fannie Mae’s and Freddie Mac’s ability to purchase single-family mortgages in forbearance. Fannie and Freddie are now able to buy loans in forbearance, with note dates on or before June 30, as long as they are delivered to Fannie and Freddie by Aug. 31 and have only one mortgage payment missed. The previous policy was set to expire on May 31.