The Quick Read: Usually, yes, but not while you are still in forbearance. Once it ends, lenders look at how the missed payments were resolved and how many on-time payments you have made since. Forbearance pauses payments; it does not erase them. The program you hold (conventional, FHA or VA) sets how long you wait.
What Does “Forbearance Ends” Actually Mean?
Forbearance ending means the pause or reduction in payments is over and the servicer has moved you into a resolution. The missed amounts are still owed. Fannie Mae’s forbearance guidance says repayment of all unpaid amounts is required, but not all at once.
Refinance savings and break-even estimate
The starting figures are an example value with a balance in proportion and a placeholder for costs. Replace them with yours, and enter the current rate from your statement.
Editable benchmark: 7.32% as of October 22, 2026 · Freddie Mac 30-year average via FRED®. A conventional market reference, not a refinance quote.
Illustrative starting assumptions: a $350,000 home value, a $245,000 current balance, a current rate you enter and a remaining term seeded at twenty-five years, closing costs seeded at $5,000 as an editable placeholder (not a fee quote) and rolled into the new loan, a thirty-year term at the current Freddie Mac benchmark, and property taxes and insurance estimated at typical national rates. Every field is editable.
Illustrative estimate only — not a Loan Estimate, approval, quote, or commitment to lend. The new rate field carries the weekly Freddie Mac thirty-year conventional benchmark, a market reference and not a refinance quote; a refinance is priced by the lender at lock, and the current rate, the remaining term and the closing costs are figures you enter. The current payment is estimated from the balance, the current rate and the remaining term; the break-even divides the closing costs by the monthly saving and ignores the interest effect of a longer term. On the VA IRRRL the funding fee is added to the loan unless the veteran is exempt. Taxes and insurance are editable estimates. Licensed in sixteen states for consumer mortgages; Lendmire is a broker, never the lender.
The usual exits are:
- Reinstatement: you pay the missed amount in one sum and the loan is current.
- Repayment plan: you add extra to each payment for a set period, up to 12 months on Fannie Mae loans.
- Payment deferral or partial claim: the missed amount moves to the end of the loan or into a separate junior lien.
- Modification: the loan terms are changed.
Whichever exit you land on matters more than the calendar date. Get it in writing from your servicer, along with the payment history since.
Is There a Waiting Period? Then vs. Now
There is no single waiting period today. Conventional loans follow a standard payment-history review, while FHA and VA add their own timing rules.
During the pandemic, the FHFA let borrowers who were current or had reinstated refinance or buy. Borrowers on a repayment plan or deferral needed three timely payments. Fannie Mae's Lender Letter LL-2021-03 retired those temporary policies on Feb. 15, 2023. Many older articles still call "three payments" the rule. It is not.
In practice, across the wholesale programs Lendmire places files with, lenders often still treat a short run of on-time payments as a sensible benchmark. That is a habit, not an agency rule. Some lenders also set stricter standards than the agency minimum, so one lender's answer may differ from another's.
Another old number, the 12-month wait, was the older conventional standard before the pandemic. It lives on mainly in FHA rules for non-streamline refinances.
How Does Your Exit Route Change the Timing?
Your route decides what a lender wants to see and what happens to the missed amounts at closing.
| Exit route | Missed amounts | What lenders focus on |
|---|---|---|
| Kept paying | Nothing owed | Normal payment history |
| Reinstated | Paid in full | Current status, payments since |
| Repayment plan | Paid over time | Plan completed or on track |
| Deferral / partial claim | Due at payoff or refinance | Payoff statement, any junior lien |
| Modification | Terms changed | Payments since the modification |
A modification can restart the clock. Seasoning on a modified loan may be measured from the modification's first payment, not the original loan.
Rules by Loan Type
A rate-and-term (limited cash-out) refinance on a one-unit primary residence goes to 95% LTV, subject to lender guidelines, with mortgage insurance above 80%. That insurance can be cancelled at 80% and ends automatically at 78%.
FHA. The FHA Streamline is for homeowners who already hold an FHA loan. It carries no appraisal and a limited credit review, and it requires a net tangible benefit. HUD's Streamline page says closing costs can't be rolled into the new mortgage amount. FHA rate-and-term refinances with an appraisal go to 97.75%. Timing after forbearance on a Streamline is something to confirm with the lender against current HUD rules rather than assume.
VA. The VA streamline refinance is for existing VA loans. It carries a 0.5% funding fee unless you are exempt, no VA appraisal, and a net tangible benefit test. Seasoning is the later of 210 days and six payments. Whether payments skipped during forbearance count toward those six varies by lender, so ask early.
USDA. The CFPB notes that USDA doesn't require a lump sum at the end of forbearance.
Cash-out is a different test. Conventional cash-out tops out at 80% LTV on a one-unit primary residence and requires the first mortgage to be at least 12 months old, measured note date to note date. A borrower also must have been on title for six months, with limited exceptions. Terms depend on the lender's guidelines, the property type, the leverage, and a full review of the credit profile.
What Happens to a Deferral or Partial Claim?
The deferred amount does not disappear. The junior lien is repaid when you refinance, sell or pay off the mortgage.
On a conventional limited cash-out refinance, a deferred balance shown on the payoff statement can be part of the payoff. There is a trap, though. If a separate second lien was used to cure the arrears, the refinance is treated as cash-out. Fannie Mae's rules for limited cash-out allow only second liens used to buy the property to be paid off and included.
Rolling a deferred balance into the new loan raises the new loan balance. It does not add to your monthly payment on its own, but you will carry it with interest. Refinance proceeds also can't be used to reinstate a loan, so the old loan must be resolved the way the servicer documented.
For VA loans, some lenders say a partial-claim lien can't be paid off in an IRRRL and needs another path. Confirm that with your loan officer before planning around it.
What Do Lenders Review After Your Exit?
Lenders look at the story your file tells since the forbearance ended. The main factors are:
- Seasoning since the resolution
- Your payment record since then
- Credit score and credit report coding
- Income and debt-to-income ratio, on credit-qualifying files
- Whether a junior lien is being paid off
- Loan program and occupancy
Conventional wholesale programs generally start at a 620 decision score, with the automated finding governing most files, subject to lender guidelines. Fannie Mae treats excessive prior delinquency, such as repeated 60-, 90-, 120- or 150-day lates, as an eligibility issue. COVID-era forbearance payments were not counted as historical delinquencies for that rule.
Occupancy matters, too. Streamline and IRRRL programs are for the home you live in. If the property is a second home or rental, leverage limits are lower, and that is a separate conversation.
Key Terms Defined
Forbearance: a temporary pause or reduction in mortgage payments that you must repay later.
Seasoning: the stretch of on-time payments or loan age a lender wants before approving a refinance.
Partial claim: an interest-free junior lien on an FHA loan, repaid when you pay off or refinance.
Limited cash-out refinance: a refinance that pays off your existing loan and costs, with only incidental cash back.
Net tangible benefit: a test showing the refinance leaves you better off, required on FHA Streamline and VA IRRRL loans.
Should You Refinance at All?
A refinance is worth doing only if the break-even works for you. Weigh these before applying:
- Closing costs against savings. How long will you stay in the home? Costs are paid up front or built into the loan balance.
- Term reset. A fresh 30-year term can lower the payment while raising total interest paid.
- Deferred balance. Rolling it in raises the balance you carry.
- Rate window. Waiting for seasoning can mean missing a better window, so plan the timeline instead of drifting.
Think twice if you plan to sell soon, if your payment record since the exit is thin, or if the savings are small. A refinance fits better when your payments are steady, your equity is solid and the new terms clearly improve your budget.
Step-by-Step: Getting Ready
1. Get written confirmation from your servicer that the forbearance is closed and how it was resolved.
2. Request your payment history and a payoff statement showing any deferred balance.
3. Pull your credit reports and check that the forbearance is coded correctly.
4. Gather income documents and your servicer's exit letter.
5. Ask any lender about overlays stricter than the agency minimum.
6. Compare programs on the same home.
Lendmire's refinance programs cover conventional, FHA, VA and jumbo options through wholesale lenders in the 16 states where it is licensed for consumer lending. Its guide to refinancing a mortgage in forbearance or after a modification goes deeper if your exit was a modification.
What If You're Denied or Not Ready?
A denial is often a timing or paperwork problem. Check that the servicer recorded the exit correctly, correct any credit report errors, and keep making on-time payments. Then reapply.
If a refinance isn't workable yet, alternatives include a longer repayment plan, a modification or, in some cases, selling.
Frequently Asked Questions
How soon after forbearance can I refinance?
It depends on your program and exit route. Conventional lenders review your payment history under standard guidelines, FHA adds its own timing rules, and VA uses its 210-day and six-payment seasoning. Many lenders like a short run of on-time payments, but that is a practice rather than a universal rule.
Can I refinance if I never missed a payment?
Often yes. If you were enrolled in forbearance but kept paying, your payment history may look normal. Lenders still review the file, and program rules and overlays apply, so confirm with a loan officer.
Do I have to repay everything in one lump sum?
No. Fannie Mae says repayment is required but not all at once. Reinstatement, a repayment plan, a deferral, a partial claim and a modification are all possible exits. USDA doesn't require a lump sum either.
Can I take cash out after forbearance?
Possibly, with tighter limits. Conventional cash-out goes to 80% LTV on a one-unit primary residence and requires the first mortgage to be at least 12 months old. A separate second lien used to cure arrears can also make a refinance cash-out. The exact numbers vary by lender and program and follow a full review of property, leverage, and credit.
Will a deferred balance follow me into a refinance?
Yes. It comes due at payoff, so it is paid off at closing or rolled into the new loan, which raises the balance. It does not vanish.
If you are weighing a refinance and want the break-even run on your own numbers, Lendmire can help you compare the programs on the same home. Program figures are subject to lender guidelines and full file review, and nothing here is a commitment to lend.
For your own numbers, request a scenario review with Lendmire.
About Lendmire
Lendmire (NMLS# 2371349) is a mortgage broker licensed for consumer lending in 16 states. Lendmire arranges FHA, VA, conventional and jumbo purchase and refinance loans through wholesale lenders; every file is underwritten by the lender under the applicable program guidelines. Scotsman Guide named Lendmire a Top Mortgage Workplace in both 2025 and 2026.
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Informational only. Not a Loan Estimate, approval, or commitment to lend. Program availability and eligibility are subject to lender guidelines, credit approval, property review, and underwriting.
References
1. Fannie Mae forbearance guidance
2. FHFA forbearance announcement
3. Fannie Mae Lender Letter LL-2021-03
5. CFPB
6. Fannie Mae Selling Guide B2-1.3-02
This article is part of Lendmire’s Refinance series — every loan program’s qualification details, guidelines, and scenarios live on the loan options page.
Related reading: Should You Refinance to Lower Your Payment If the Term Resets? · How the Appraisal Works on a Cash-Out Refinance · How to Document Your Rehab so the Refinance Appraisal Credits It
Brandon Miller
Founder & CEO, Mortgage Loan Originator, Lendmire LLC
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Disclosure information. Lendmire is a state-licensed mortgage brokerage under NMLS# 2371349. Lendmire is not a depository institution, direct lender, or financial advisor — all loans referenced are placed through wholesale lender partners and are subject to each lender's underwriting standards. This article is provided for general informational purposes and is not a commitment to lend, nor does it constitute financial, legal, or tax advice. Loan programs, terms, rates, and qualification standards change without notice and depend on borrower profile, property type, and the state in which the subject property is located. Equal Housing Opportunity provider. NMLS Consumer Access: nmlsconsumeraccess.org.