Payment Deferral

If you’ve fallen behind on your mortgage due to a short-term hardship that is now resolved, and you are able to resume your regular monthly payments, you may qualify for a payment deferral.

This repayment option moves past-due amounts to the end of your loan term and immediately brings your loan to a current status. The deferred amount is due on your last mortgage payment date or earlier if you sell your home, refinance, or otherwise pay off your loan.

If your hardship was related to COVID-19 and Fannie Mae owns your loan, you may be eligible for our COVID-19 payment deferral, which lets you defer up to 12 months of overdue amounts. Use our Loan Lookup tool to find out if Fannie Mae owns your loan.

A payment deferral moves your overdue mortgage balance to the end of your loan term and keeps your monthly payment the same

What is a Payment Deferral?

This mortgage relief option moves past-due amounts from missed payments to the end of your loan term so you can keep the same monthly payment while bringing your loan to a current status.

Payment deferral may be an option if you are:

  • Behind on mortgage payments or at the end of a forbearance plan
  • Able to resume your regular monthly payments (your financial hardship is resolved)
  • Unable to catch up on outstanding balances with a reinstatement or repayment plan

What are the benefits?

  • Bring your mortgage current immediately
  • Keep your monthly payment the same
  • Deferred amount does not accrue interest
  • Less damaging to your credit score than a foreclosure
  • Stay in your home and avoid foreclosure

How does it work?

  • You must contact your mortgage servicer to see if you’re eligible
  • Your financial hardship must be resolved, and you must be able to make your regular monthly payments
  • Brings your loan to a current status and keeps your payment the same
  • Moves past-due amounts to the end of your loan term when they’re due with your last mortgage payment or earlier if you sell your home, refinance, or otherwise pay off your loan
  • Your mortgage servicer may send you a Payment Deferral Agreement to document the solution

Next steps

Step 1

Gather your financial information—It’s a good idea to have your basic financial and loan information on hand when you call your mortgage servicer.

Step 2

Know your current situation—Be ready to outline your current income and employment status, explain why you are having trouble catching up on your mortgage payments, and discuss whether your situation is short-term or long-term. Your mortgage servicer will need to understand the reasons you are having difficulty in order to find the right solution for you.

Step 3

Contact your mortgage company or the Fannie Mae Mortgage Help Network—To get more information about your options, including whether you may qualify for a payment deferral.