How to Refinance After Forbearance (2025 Guide)

If you went through mortgage forbearance due to a financial hardship, you may be wondering whether you can refinance your mortgage afterward. The short answer is yes – but not immediately. Most borrowers must exit forbearance, resume making their monthly mortgage payment on time, and satisfy a waiting period before they become eligible to refinance.

This guide walks you through the exact steps, timelines, and eligibility requirements for refinancing after forbearance. Whether you have a conventional loan backed by Fannie Mae or Freddie Mac, or an FHA loan, you will find the specific rules that apply to your situation below.

Understanding Forbearance

Mortgage forbearance is an agreement between a homeowner and their lender or mortgage servicer that temporarily pauses or reduces monthly mortgage payments. It is not loan forgiveness. The missed payments still need to be addressed once the forbearance period ends.

Forbearance programs became widely used during the COVID-19 pandemic under the CARES Act, which allowed borrowers with federally backed loans to request up to 18 months of forbearance. Today, forbearance remains available as a loss mitigation tool for borrowers experiencing financial hardship, though specific terms vary by loan servicer and loan type.

According to the Consumer Financial Protection Bureau, when your forbearance ends, your servicer should contact you to discuss your options. These typically include a repayment plan, loan modification, deferral, or paying the missed amount as a lump sum.

Does Forbearance Impact Your Credit Score?

During the forbearance period itself, servicers generally report your loan as current to the credit bureaus if you were current when you entered the forbearance plan. This protection was specifically required under the CARES Act for federally backed mortgages.

However, your credit score can still be affected in certain situations. If you were already behind on your mortgage payment before entering forbearance, those prior missed payments may remain on your credit report. Additionally, once forbearance ends, any payments you miss going forward will be reported as delinquent.

Your credit score matters because it directly affects your ability to refinance and the interest rates you qualify for. According to CFPB guidance, borrowers should check their credit reports after exiting forbearance to ensure the information is being reported accurately.

Forbearance vs. Deferral

These terms are often confused, but they work differently. Forbearance is the temporary pause on your monthly payment. Deferral is one option for handling the payments you missed during forbearance.

With a deferral, your missed payments are moved to the end of the loan as a non-interest-bearing balance, due when you sell, refinance, or pay off the mortgage. This differs from a repayment plan, which spreads the missed amount across future monthly payments, making each one higher for a set period.

A loan modification is yet another option. It permanently changes the terms of your mortgage – potentially lowering the interest rate, extending the term, or reducing the principal. Understanding which path you took after forbearance matters because it affects your refinance eligibility timeline.

Can You Refinance If You Are in Forbearance?

No. You cannot refinance your mortgage while you are actively in a forbearance plan. Both Fannie Mae and Freddie Mac, as well as FHA and VA loan programs, require that borrowers exit forbearance and demonstrate they have resumed making payments before they are eligible for a refinance.

Here are the general waiting period requirements by loan type:

• Conventional loans (Fannie Mae or Freddie Mac): You must make three consecutive payments after exiting forbearance or completing a repayment plan. The payments must be made on time and in full.
• FHA loans: The borrower typically must make at least three consecutive on-time payments after the forbearance ends before applying for a refinance.
• VA loans: Similar requirements apply. Borrowers generally need to make at least three to six consecutive payments depending on the refinance type.

If you received a loan modification instead of a deferral or repayment plan after your forbearance period, additional seasoning requirements may apply. Contact your lender or mortgage servicer to confirm the exact timeline for your situation.

How to Refinance Your Mortgage After Forbearance

Step 1: Exit Forbearance and Choose a Resolution

Work with your mortgage servicer to formally end your forbearance plan. You will need to select a resolution for the missed payments – whether that is a lump sum payment, a repayment plan, a deferral to the end of the loan, or a loan modification. According to the CFPB, your servicer is required to inform you of all available options before the forbearance period ends.

Step 2: Make Three Consecutive On-Time Payments

Once you have exited forbearance, begin making your full monthly mortgage payment on time. Most programs from Fannie Mae and Freddie Mac require you to make three consecutive payments before you become eligible for a refinance. This demonstrates to lenders that you have recovered from the financial hardship and can sustain your repayment obligations.

Step 3: Check Your Credit Report and Score

Before applying, review your credit report for errors. If your servicer incorrectly reported missed payments during a period when you were protected by a forbearance agreement, you have the right to dispute those errors. A higher credit score will help you qualify for better interest rates.

Step 4: Compare Lenders and Rates

Not every lender has the same policies for borrowers who have been through forbearance. Some may have additional overlay requirements – extra conditions beyond what Fannie Mae, Freddie Mac, or FHA require. Use Wirly’s lender comparison tool to see which lenders work with post-forbearance borrowers and compare current interest rates.

According to 2024 CFPB complaint data, the most common mortgage-related consumer complaint across major servicers is trouble during the payment process. For borrowers navigating the transition from forbearance back to regular payments, it is especially important to keep detailed records of all communications with your servicer and any new lender you approach.

Step 5: Calculate Your Break-Even Point

Refinancing comes with closing costs, typically ranging from 2% to 5% of the loan amount. Use Wirly’s break-even calculator to determine how many months it will take for your lower monthly payment to offset those costs. If you plan to move before reaching the break-even point, refinancing may not make financial sense.

Step 6: Apply and Lock Your Rate

Once you have selected a lender, submit your application with documentation of your income, assets, and payment history. Ask about rate lock options, including the lock period and whether a float-down provision is available in case rates drop further before closing.

Risks and Considerations

Refinancing after forbearance is not the right move for every homeowner. Consider these important factors:

• Restarting the amortization clock: If you refinance into a new 30-year mortgage, you reset the repayment timeline. This can mean paying significantly more in total interest over the life of the loan, even if your monthly payment decreases.
• Closing costs add up: Appraisal fees, title insurance, origination fees, and other charges can total thousands of dollars. If your savings from a lower rate are modest, it may take years to break even.
• Credit score impact: Each lender application triggers a hard inquiry on your credit report. While multiple mortgage inquiries within a 14 to 45 day window typically count as a single inquiry for scoring purposes, applying over a longer period can lower your score temporarily.
• Planning to move soon: If you expect to sell within a few years, the closing costs of refinancing may outweigh the monthly savings.
• Prepayment penalties: Some loans include penalties for paying off the mortgage early. Check your current loan terms before proceeding.
• Rate lock risks: If your rate lock expires before closing, you could end up with a higher rate. Understand the lock terms before committing.

Frequently Asked Questions

How long after forbearance ends can I refinance?

For conventional loans backed by Fannie Mae or Freddie Mac, you typically need to make three consecutive on-time payments after exiting forbearance. FHA loans have similar requirements. The exact timeline depends on your loan type and how you resolved the forbearance – whether through a deferral, repayment plan, or loan modification.

Will my forbearance show up when I apply for a refinance?

Yes. Lenders can see your forbearance history when they review your loan records. However, if your payments were reported as current during the forbearance period (as required under the CARES Act for federally backed loans), this should not appear as a delinquency on your credit report.

Can I refinance with a different lender after forbearance?

Yes. You are not required to refinance with the same lender or loan servicer that handled your forbearance. In fact, shopping multiple lenders may help you find better interest rates and terms. Use Wirly’s refinance calculator to estimate potential savings with different scenarios.

What if my lender says I cannot refinance after forbearance?

Some lenders apply stricter standards (called overlays) than what the agencies require. If one lender turns you down, another may approve you as long as you meet the baseline Fannie Mae, Freddie Mac, or FHA eligibility requirements. According to CFPB guidance, you have the right to shop around and are not obligated to stay with your current servicer.

Is a loan modification better than refinancing after forbearance?

It depends on your financial situation. A loan modification changes your existing loan terms without closing costs, which can be advantageous if you have limited equity or a lower credit score. Refinancing replaces your loan entirely, which may offer a lower interest rate but comes with closing costs. Compare both options carefully before deciding.

Disclaimer: This article is for educational purposes only and does not constitute financial advice. Wirly is not a lender or mortgage broker. Your individual circumstances may vary. Consult with a qualified financial professional or housing counselor before making decisions about refinancing after forbearance.

Published by the Wirly Editorial Team. This article was drafted using AI writing tools and reviewed for accuracy by our editorial team. All data claims have been verified against the sources listed below.

Sources

• Consumer Financial Protection Bureau (CFPB) – Mortgage forbearance guidance and consumer protection information
• CFPB Consumer Complaint Database – 2024 mortgage complaint data referenced for servicer complaint volumes
• Fannie Mae Selling Guide – Eligibility requirements for refinancing after forbearance on conventional loans
• Freddie Mac Single-Family Seller/Servicer Guide – Post-forbearance refinance seasoning requirements
• FHA/HUD – FHA loan forbearance and refinance eligibility guidelines

Sources

• CFPB (Consumer Financial Protection Bureau) – Official consumer protection guidelines and mortgage resources
• Freddie Mac Primary Mortgage Market Survey – Weekly benchmark mortgage rate survey dating to 1971

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Written by the Wirly Editorial Team. Last reviewed: March 30, 2026. Fact-checked against CFPB consumer complaint data 2024, CFPB forbearance guidance, Fannie Mae selling guide, Freddie Mac seller/servicer guide, FHA/HUD guidelines. See our methodology for how we evaluate lenders.