Most mortgage companies will defer a payment, but only under specific conditions and only once or twice
A mortgage payment deferral means your lender postpones one or more monthly payments and adds them to the end of your loan. It is not forgiveness—you still owe the money. Whether your company will do it depends on why you need it, whether you have missed payments before, and what their deferral policy allows. Some lenders will defer once per loan; others allow it only during declared disasters. A few will not defer at all.
The practical answer: call your lender's loss mitigation or loan servicing department and ask directly. They will tell you whether deferral is an option for your situation. Do not assume it is available just because you have heard of it happening. Do not wait until you have already missed a payment—that changes the conversation from deferral to forbearance or loss mitigation, and the terms are different.
Key Takeaways
- Mortgage deferral postpones your payment and adds it to the end of your loan; you are not getting out of the payment, only moving it.
- Your lender's loss mitigation department handles deferral requests, and you need to contact them before your payment is due, not after.
- Most lenders will defer one payment per loan, and some will defer two or three, but repeated deferrals usually require a formal forbearance agreement instead.
- Deferral typically does not affect your credit score if you request it before missing a payment, but forbearance and missed payments do.
- If your lender denies deferral, you may have other options: loan modification, forbearance, or refinancing, depending on your circumstances.
When mortgage companies will and will not defer
Lenders are most likely to defer if you have a documented hardship that is temporary—job loss, medical emergency, unexpected expense—and you have a history of on-time payments. They want to see that you are a borrower who normally pays and has hit a bump, not someone who is chronically behind.
Lenders are unlikely to defer if you have already missed payments, if you are asking for the third or fourth deferral in a short time, or if your loan is in default. Once you miss a payment, deferral is usually off the table; your lender will instead offer forbearance (a formal pause on payments with a repayment plan) or a loan modification (a permanent change to your loan terms).
Some lenders have blanket policies: Fannie Mae and Freddie Mac loans (which make up roughly half of all mortgages in the United States) allow one deferral per loan under their guidelines, though individual servicers may be more or less flexible. VA loans and FHA loans have their own deferral rules. Jumbo loans and portfolio loans held by smaller banks or credit unions may have no deferral option at all.
How to request a deferral and what to expect
Call your mortgage servicer—the company you send your payment to, which may not be the bank that originated your loan. Ask for the loss mitigation department or loan servicing. Tell them you need to defer one payment and explain your situation briefly. They will ask for proof: recent pay stubs, a termination letter, medical bills, or a written explanation of the hardship. Have these ready before you call.
The servicer will tell you whether deferral is available and, if so, what the terms are. Typically, they will ask you to sign a deferral agreement that spells out which payment is being deferred, when it will be added back to your loan, and whether interest accrues on the deferred amount. Read this document carefully—some agreements add the deferred payment to the end of your loan (extending the payoff date), while others roll it into your next payment or add it to your final balloon payment.
Processing usually takes one to two weeks. Your servicer will send you written confirmation. Keep this document; you will need it if there is any dispute later about whether the deferral was approved.
Deferral versus forbearance versus loan modification
These three options sound similar but work very differently. A deferral is informal and temporary—you skip one or two payments and make them up later. A forbearance is a formal agreement where your lender pauses or reduces payments for a set period (usually three to six months) and then you resume normal payments or follow a repayment plan to catch up. A loan modification permanently changes your loan: lower interest rate, longer term, or different payment structure.
Deferral is the fastest and least disruptive if your lender will grant it. Forbearance is what you get if deferral is not available or you need more than one or two months of relief. Loan modification is for people who cannot afford their current payment even after hardship passes and need a permanent change.
If your lender denies deferral, ask whether forbearance is an option. If you have a Fannie Mae or Freddie Mac loan and have been affected by a natural disaster or pandemic, you may have a right to forbearance even if deferral is denied. If you are in default or have missed multiple payments, forbearance is usually your only path forward.
What happens to your credit if you defer a payment
A deferral requested and approved before you miss a payment does not show up on your credit report. Your payment history remains clean. This is the main reason to call your lender before the payment is due, not after.
If you miss a payment and then ask for deferral or forbearance, the missed payment will be reported to the credit bureaus and will damage your score. A 30-day late payment can drop your score 100 points or more, depending on your starting score and credit history. This damage can take years to recover from, even after you catch up on payments.
Loan modifications also appear on your credit report as a change to your loan terms, which can lower your score slightly, but not as much as a missed payment. If you are facing a long-term hardship and deferral is not enough, a modification is often better for your credit than letting payments slide.
What to do if your lender denies deferral
Ask why. The answer matters. If they say you do not meet their hardship criteria, ask what would may have access to. If they say you have too many recent deferrals or missed payments, ask whether forbearance is available instead. If they say your loan type does not allow deferral, ask about loan modification or refinancing.
If you have a federal loan (FHA, VA, USDA), contact your loan servicer's loss mitigation department again and ask specifically about forbearance under the relevant federal program. Federal loans have more structured relief options than conventional loans.
If you have a conventional loan and deferral is denied, you have a few paths: request forbearance, explore loan modification, or contact a HUD-approved housing counselor (free service through HUD's website) to discuss your options. A counselor can sometimes negotiate with your lender on your behalf or help you understand whether refinancing is realistic given your situation.
Deferral and your loan term
When you defer a payment, your loan does not automatically get longer. The deferred amount is added to your loan balance, and you pay it back according to the deferral agreement. Some agreements extend your payoff date by one month; others roll the deferred payment into your next regular payment or add it to your final payment. The deferral agreement will specify which.
If you defer multiple times, the effect compounds. Deferring three payments means three extra months of interest accruing on your balance, which increases the total cost of your loan. This is why deferral is meant to be occasional, not routine.
If you are considering deferral, ask your servicer to show you in writing how the deferred amount will be handled and what the total cost to you will be. This helps you decide whether deferral is worth it or whether another option (like a loan modification) makes more sense.
Frequently Asked Questions
Can I defer a payment if I have already missed one?
No. Once you miss a payment, your lender will not defer; they will offer forbearance or loan modification instead. A missed payment is reported to credit bureaus and changes your status from current to delinquent. Call your servicer when ready if you are about to miss a payment and ask for deferral before the due date passes.
How many times can I defer a payment?
Most lenders allow one deferral per loan, some allow two. Repeated deferrals require a formal forbearance agreement, which has different terms and credit implications. If you need more than one deferral, ask your servicer about forbearance or loan modification instead.
Will deferral affect my interest rate or loan balance?
Deferral does not change your interest rate. The deferred payment is added to your loan balance, and interest continues to accrue on the total balance. You will pay slightly more interest overall because you are paying back the deferred amount over a longer period, but the rate itself stays the same.
What if my mortgage servicer says they do not offer deferral?
Ask about forbearance, which is more widely available. If you have a federal loan (FHA, VA, USDA), you may have a legal right to forbearance even if the servicer does not mention it. Contact a HUD-approved housing counselor for free guidance on what options explore to your specific loan type.
Do I need a lawyer to request a deferral?
No. You can request deferral directly from your servicer's loss mitigation department by phone or in writing. If your servicer denies deferral and you want to dispute it, a HUD-approved housing counselor can help you understand your options at no cost. A lawyer is not necessary unless you are in foreclosure or facing legal action.