How to Pause or Reduce Your Mortgage Payment When You Can't Pay
What deferment means and who can get it
Mortgage deferment means your lender lets you skip or reduce your monthly payment for a set period — usually three to twelve months — without marking you as late. The skipped amount gets added to the end of your loan, so you still owe it; you are not forgiven the debt. Deferment is not automatic. You have to ask your lender, and approval depends on your specific loan type and the reason you cannot pay.
Deferment is different from forbearance, which is a temporary pause that also delays payment but may have different terms. Both exist, and your lender will tell you which one applies to your situation. If you have a government-backed loan (FHA, VA, USDA), deferment programs are often more structured. If you have a conventional loan from a private bank, the terms vary by lender and your account history.
The key thing to understand: deferment is a negotiation between you and your lender. You do not may have access to for it by meeting a checklist. You request it, explain your hardship, and the lender decides. Starting the conversation early — before you miss a payment — gives you more options and more time to work out the details.
Key Takeaways
- Deferment pauses your monthly payment for a set time without reporting you as late, but the skipped amount is added to your loan balance at the end.
- You must contact your lender directly and request deferment; it is not automatic, and approval depends on your loan type and the reason for hardship.
- Government-backed loans (FHA, VA, USDA) often have structured deferment programs, while conventional loans vary by lender.
- Applying before you miss a payment gives you more negotiating power and more time to arrange the details.
- After deferment ends, you resume full payments plus whatever was deferred, so make sure you can afford the total before you agree.
How to contact your lender and request deferment
Your mortgage statement or loan documents list a customer service number. Call that number and ask to speak with someone in loss mitigation or loan modification. Do not call the general payment line; they will only take a payment. Loss mitigation is the department that handles payment problems.
When you call, have your loan number and account information ready. Explain that you are experiencing a temporary hardship and want to know whether deferment is an option. The lender will ask what caused the hardship — job loss, medical emergency, reduced income — and how long you expect the problem to last. Be honest and specific. "I lost my job in March and expect to return to work in September" is more useful than "I am having trouble."
Ask the lender to send you the deferment agreement in writing before you agree to anything. The agreement should state how many months are deferred, what happens to the skipped payments, what your new payment will be after deferment ends, and any fees involved. Read it carefully. If you do not understand a term, ask the lender to explain it in writing.
What happens to your skipped payments
When you defer a payment, that month's principal and interest do not disappear. Instead, your lender adds it to the end of your loan. If you defer three months of $1,500 payments, you owe an extra $4,500 added to your loan balance. You will pay interest on that amount for the remaining life of the loan unless you pay it back sooner.
Some deferment agreements let you repay the deferred amount in a lump sum at the end of the deferment period. Others spread it across your remaining loan payments. A few lenders offer principal reduction — forgiving part of the deferred amount — but this is rare and usually only for loans backed by government programs or for borrowers in severe hardship. Ask your lender whether any of these options apply to you.
The important step: before you agree to deferment, calculate what your payment will be after deferment ends. If you defer three months and your payment is $1,500, you need to be able to afford $1,500 plus whatever extra is added to cover the deferred amount. If you cannot afford that, deferment just delays the problem.
Deferment for different loan types
FHA loans (Federal Housing Administration) have a formal deferment program. If you are experiencing a temporary hardship, you can defer up to six months of payments. The deferred amount is added to your loan, and you resume regular payments after the deferment period ends. FHA also allows you to request a loan modification at the same time, which can lower your payment permanently.
VA loans (Veterans Affairs) offer similar deferment options for may be able to access veterans. The VA Loan Servicer can explain your options, and the process is often faster than conventional loans because the VA backs the loan. Contact your loan servicer — not the VA directly — to start the conversation.
USDA loans (U.S. Department of Agriculture) for rural properties allow deferment for borrowers facing temporary hardship. The terms are similar to FHA: you can defer payments for a set period, and the amount is added to your loan balance.
Conventional loans from private banks do not have a standard deferment program. Each lender sets its own rules. Some offer deferment readily; others prefer loan modification or forbearance. Call your lender and ask what options exist for your specific loan. Having a good payment history before the hardship makes approval more likely.
The difference between deferment and forbearance
Both deferment and forbearance pause your payment, but they work differently. Deferment adds the skipped payment to the end of your loan. Forbearance temporarily reduces or pauses your payment, and the lender may allow you to repay the missed amount over time without adding it all to the end.
Forbearance is often used when you expect your hardship to be very short — a few weeks or a month. Deferment is for longer pauses, usually three months or more. Some lenders use the terms interchangeably, so ask your lender to explain exactly what happens to your payment and when you resume paying.
Both deferment and forbearance can affect your credit report if the lender reports it as a modification or hardship arrangement. Ask your lender whether the deferment will show on your credit report and how it will be reported. Some lenders report it as "deferred" rather than "late," which is better for your credit score.
What to do if your lender denies deferment
If your lender says no to deferment, ask why. The answer matters. If they say you do not have enough equity in the home or your income is too low, a loan modification might work instead — that is a permanent change to your loan terms, not a temporary pause. If they say you have missed too many payments already, you may need to catch up before deferment is possible.
You can also ask about a loan modification, which changes the interest rate, term, or principal to lower your monthly payment. This is permanent, not temporary, and it may be easier to get than deferment if you are in a long-term hardship.
If you are struggling and your lender will not work with you, contact a HUD-approved housing counselor. These counselors are free and can negotiate with your lender on your behalf. Find one through the HUD website or by calling 1-800-569-4287. They can also tell you whether you have other options, such as refinancing or selling the home.
After deferment ends: what to expect
When your deferment period is over, your regular payment resumes. If you deferred three months of $1,500 payments, your lender will tell you how much extra is added to your monthly payment or your loan balance. Some lenders add it gradually over the remaining loan term. Others require a lump-sum payment at the end of deferment.
Before deferment ends, contact your lender again and confirm the exact amount you owe and the date your new payment is due. Do not assume the payment goes back to the original amount. Ask for a new amortization schedule showing how the deferred amount is being repaid.
If your hardship is not over when deferment ends, talk to your lender immediately. Do not wait until you miss a payment. You may be able to extend deferment, request forbearance, or pursue a loan modification. The longer you wait, the fewer options you have.
Frequently Asked Questions
Will deferment hurt my credit score?
Deferment itself does not automatically hurt your credit if your lender does not report it as a late payment. However, some lenders report deferment as a modification or hardship arrangement, which may lower your score slightly. Ask your lender how they will report it before you agree. Staying current on your payments after deferment ends helps your score recover.
Can I defer my mortgage payment if I have already missed one?
Yes, but it is harder. Lenders are more willing to work with borrowers who have not yet fallen behind. If you have missed a payment, you may need to catch up first or pursue a loan modification instead of deferment. Contact your lender immediately to discuss your options.
What if I cannot afford my payment after deferment ends?
Tell your lender before deferment ends. You may be able to extend deferment, request a loan modification to lower your payment permanently, or explore other options like refinancing. Waiting until you miss a payment limits your choices and damages your credit.
Do I have to pay interest on the deferred amount?
Yes, in most cases. The deferred amount is added to your loan balance, and you pay interest on it for the remaining life of the loan. Some government-backed programs or special hardship situations may offer principal reduction, but this is rare. Ask your lender whether any reduction is possible in your case.
Can I request deferment more than once?
It depends on your lender and loan type. Some allow multiple deferment periods if you have a new hardship. Others limit you to one. Ask your lender about their policy. If you need long-term payment relief, a loan modification is usually a better option than repeated deferment.