How many months you can defer depends on your lender and loan type
Most mortgage lenders allow you to defer between three and twelve months of payments, but the exact number depends on whether you have a conventional loan, FHA loan, VA loan, or other type of mortgage. Your lender's policy and your specific loan documents set the limit—there is no single federal rule that applies to all mortgages. The only way to know your actual options is to contact your lender directly and ask about their forbearance or deferral program.
Deferral is different from skipping a payment. When you defer, you are postponing payments temporarily with your lender's permission, and those payments get added to the end of your loan or rolled into a modified repayment plan. You are not forgiven the money; you still owe it. The lender decides how long they will allow the deferral to last, and that decision is based on the type of loan you have and the reason you need the deferral.
If your mortgage is backed by Fannie Mae or Freddie Mac (the two largest mortgage companies in the United States), you may be able to defer up to twelve months of payments under their forbearance programs. If you have an FHA loan, the limit is typically up to twelve months as well. VA loans have similar options. But if you have a portfolio loan held by a smaller bank or lender, the deferral period might be shorter—sometimes as little as three months—or the lender might not offer deferral at all.
Key Takeaways
- Deferral periods range from three to twelve months depending on your lender and loan type, and you must contact your lender to find out what they offer.
- Deferred payments are not forgiven; they are added to the end of your loan or included in a new repayment plan, so you will still owe the full amount.
- Fannie Mae and Freddie Mac loans typically allow up to twelve months of deferral, while smaller lenders may offer less.
- The deferral period usually starts when you first miss a payment or when you formally request forbearance, and your lender will tell you the exact end date.
- Once the deferral period ends, you must resume regular payments or enter into a permanent loan modification to avoid default.
What happens to your deferred payments
When you defer mortgage payments, the money does not disappear. Your lender adds the deferred amount to the back end of your loan, meaning you will pay it off over time as part of your regular mortgage. This is called a loan modification or forbearance agreement. The exact structure depends on what your lender offers and what you negotiate.
Some lenders add the deferred payments as a lump sum at the end of the loan—so if you defer six months and your loan has ten years left, you will now have ten years and six months of payments. Other lenders roll the deferred amount into a new monthly payment, which means your regular payment goes up for the rest of the loan. A few lenders offer a third option: a temporary payment plan where you pay a reduced amount for several months, then return to your normal payment once the deferral period ends.
Your lender will provide a written agreement that spells out exactly how the deferred payments will be handled. Read this document carefully before you sign it, because it locks in how you will repay the money. If you do not understand the terms, ask your lender to explain them in writing.
How to request a deferral from your lender
Contact your lender's loss mitigation or customer service department and ask specifically about forbearance or payment deferral options. Do not wait until you have missed multiple payments—the sooner you reach out, the more options you typically have. Many lenders have dedicated phone lines or online portals for borrowers in financial hardship.
Be prepared to explain why you need the deferral. Lenders are more likely to approve deferral if you have a temporary hardship—job loss, medical emergency, reduced income—rather than a permanent inability to pay. Have your loan number and account information ready when you call.
Your lender will ask you to provide documentation of your hardship, such as a letter explaining the situation, recent pay stubs, bank statements, or a termination notice from your employer. They may also ask about your current income and expenses. This is standard; they need to confirm that you are actually in hardship and that deferral is a reasonable option for you.
Once you submit your request, the lender will review it and send you a written decision. This process typically takes two to four weeks. If approved, you will receive a forbearance agreement or loan modification agreement that outlines the deferral period, how many months you can defer, and what happens to those payments afterward.
What happens when the deferral period ends
When your deferral period ends, you must resume making payments. Your new payment amount depends on how your lender structured the deferral. If they added the deferred amount to the end of your loan, your monthly payment stays the same but your loan is now longer. If they rolled the deferred amount into a new payment plan, your monthly payment will be higher than it was before.
Your lender will send you a new payment schedule before the deferral period ends, showing your new payment amount and due date. Read this carefully to make sure you understand what you owe. If you cannot afford the new payment, contact your lender immediately—waiting until you miss a payment makes your situation worse.
If you miss a payment after the deferral period ends, you are in default again, and the lender can begin foreclosure proceedings. Deferral is a temporary solution, not a permanent fix. If your financial situation has not improved by the time the deferral ends, you may need to explore other options such as a permanent loan modification, refinancing, or selling the home.
Deferral limits and what to do if you need more time
Most lenders will not allow you to defer more than once. If you defer for six months and then your hardship continues, you cannot simply ask for another six-month deferral. Instead, you will need to work with your lender on a different solution, such as a permanent loan modification that lowers your monthly payment, extends your loan term, or reduces your interest rate.
If you reach the end of your deferral period and still cannot afford your mortgage, tell your lender before you miss a payment. They may be willing to modify your loan permanently rather than let you default. A permanent modification is better than default because it keeps you in your home and protects your credit score.
Some borrowers also explore refinancing as an alternative to deferral. If your credit score and income still may have access to you for a new loan, refinancing can lower your monthly payment or change your loan terms. This is a separate transaction from deferral and requires a new application, but it can be a permanent solution if deferral is not enough.
How deferral affects your credit score
A deferral or forbearance agreement does not automatically damage your credit score the way a missed payment does. However, if you missed payments before you entered the deferral agreement, those missed payments are already on your credit report and will lower your score. The deferral itself—the act of postponing payments with your lender's permission—typically does not show up as negative on your credit report.
Once you resume payments after the deferral period ends and make all your payments on time, your credit score will gradually recover. The missed payments that triggered the deferral will stay on your report for seven years from the date of the first missed payment, but their impact on your score decreases over time as you build a record of on-time payments.
If you default after the deferral period ends—meaning you do not resume payments and do not work out a new agreement with your lender—that default will be reported to the credit bureaus and will significantly damage your score. This is why it is critical to either resume payments or negotiate a permanent solution before the deferral period ends.
Deferral vs. forbearance vs. loan modification
These three terms are often used interchangeably, but they mean slightly different things. Forbearance is the legal right to temporarily stop or reduce payments without defaulting. Deferral is a type of forbearance where you postpone payments and add them to the end of your loan. Loan modification is a permanent change to your loan terms—it might lower your interest rate, extend your loan term, or change your monthly payment.
When you call your lender and ask about deferral, they may use the word "forbearance" instead. Both refer to the same basic concept: temporary relief from your regular payment obligation. The key difference is what happens after the relief period ends. With forbearance or deferral, you eventually have to pay back the deferred amount. With a loan modification, your loan terms change permanently, and you do not have to pay back a lump sum later.
If your lender offers you a choice between deferral and modification, modification is usually better if you cannot afford your current payment long-term. Deferral is better if your hardship is temporary and you expect to be able to afford your regular payment again in a few months.
Frequently Asked Questions
Can I defer my mortgage if I have not missed a payment yet?
Yes. Many lenders will work with you on forbearance or deferral even if you have not missed a payment, as long as you can show that you are facing a financial hardship. Calling early is actually better because it shows you are being proactive. However, some lenders only offer deferral after you have missed at least one payment, so ask your lender about their specific policy.
What if my lender says I can only defer for three months but I need six?
Ask your lender if you can extend the deferral period or if they offer a loan modification as an alternative. Some lenders will extend if your hardship is ongoing and you are making a good-faith effort to recover. If they refuse, you may be able to refinance with a different lender or explore other options like a loan modification or sale.
Do I have to pay back the deferred payments all at once?
No. Your lender will add the deferred payments to your loan in a way that spreads them out over time—either by extending your loan term or by increasing your monthly payment. You will not owe a lump sum. The exact structure depends on your lender's agreement.
What happens if I cannot afford my payment after the deferral ends?
Contact your lender before you miss a payment and ask about a permanent loan modification. If your income has not recovered, a modification that lowers your payment or extends your loan term may be your best option to stay in your home.
Can I defer my mortgage during a forbearance period?
Deferral and forbearance are the same thing—forbearance is the umbrella term, and deferral is how the forbearance works. You cannot defer during a forbearance period because deferral is what the forbearance period is. Once the forbearance period ends, you must resume payments or enter a new agreement.