Mortgage forbearance consequences come down to three places: your loan balance, your credit file and your next loan application. Forbearance is a temporary pause or reduction of payments that your servicer agrees to. It is not forgiveness, so every paused dollar is still owed. Many borrowers can still refinance or buy again, but waiting periods often apply, and they vary by loan program.
Duane Buziak, a soft pull mortgage broker, works with 500+ wholesale lenders, which matters when your history is unusual. His NoTouch Credit Pull is a soft-pull pre-approval: it reviews your credit without a hard inquiry, the kind of check that can lower your score slightly and is recorded as an application. That gives you a soft credit pull mortgage review with no score impact while you compare options.
Below you will find how reporting works, the repayment options at the end of forbearance, the dollar math on a sample repayment, and what to expect when you apply for a new loan.
Does Mortgage Forbearance Hurt Your Credit Score?
Forbearance itself is not a late payment, but how your servicer reports it decides the damage. Under the CARES Act, a loan in a CARES forbearance that was current beforehand should keep reporting as current during the plan. Reporting for non-CARES forbearance varies by servicer and investor, so verify how yours is handled rather than assuming.
An account in forbearance may carry a special comment code on your credit report, and that code can be visible to anyone who pulls your file. Scoring models generally do not treat the code itself as a missed payment, but a human underwriter reading the report will see it. Also, if you were already behind before forbearance started, those late payments still count as late. Forbearance does not rewrite history that came before it. If you are weighing it against other relief tools, this comparison of mortgage forbearance vs. deferment shows how each affects your credit.
Your practical step is to pull your reports at AnnualCreditReport.com, the free federally authorized source, and check how the mortgage appears at all three bureaus. If it shows late during a period you were approved for forbearance, dispute it with the bureau and your servicer in writing. The CFPB publishes guidance on credit reporting during forbearance; check its current wording, since pandemic-era guidance has changed over time.
Hard inquiry versus soft inquiry
A hard inquiry happens when you formally apply for credit and a creditor pulls your report for a lending decision. It is recorded on your file and can lower your score by a few points. A soft inquiry is a review that is not tied to a credit application, such as checking your own score, and it does not affect your score at all. After forbearance your file may already be fragile, so avoiding unnecessary hard inquiries while you shop is worth the effort. If your score took a hit, see the minimum credit score for a mortgage by loan type.
What Do You Owe When Forbearance Ends?
Every paused payment is still owed, and your servicer decides, within the rules of your loan type, how you repay it. Forbearance postpones the bill. It does not cancel it.
Servicers typically work through these exit options, roughly in this order:
- Reinstatement: you pay the full missed amount in one lump sum, your monthly payment stays the same and the balance is unchanged.
- Repayment plan: the missed amount is spread over several months on top of your regular payment, so the monthly payment rises temporarily and the balance is unchanged.
- Deferral or partial claim: the missed amount moves to the end of the loan, often as a zero-interest second balance due at payoff, sale or refinance. Your monthly payment returns to normal, though the total you owe goes up. FHA and some other programs use partial claims, while conventional loans typically use deferrals.
- Loan modification: the missed amount is added to the loan and the terms are changed, often the rate, the term or both. The payment and the balance both change.
The most common mistake is assuming a balloon payment is due the day forbearance ends. Most borrowers have options, though they depend on who backs the loan: FHA, VA, USDA, Fannie Mae or Freddie Mac each have their own loss mitigation programs. Check current rules with your servicer, and look at HUD for FHA loans or VA.gov for VA loans, since program details change.
A related misconception is how interest works. The missed amounts are owed, but the mechanics differ by option. A deferral may carry no interest on the deferred sum, while a modification folds it into a balance that does accrue interest. Ask your servicer which applies to you in writing. If the repayment leaves you stretched, these ways to lower a mortgage payment you’re struggling to afford may help.
What Does a Forbearance Repayment Cost in Real Dollars?
On a sample loan, six paused payments come to about $13,272, and how you repay them changes your monthly cost far more than the total. These figures are illustrations, not a quote.
Suppose you owe $350,000 at a 6.5% fixed rate on a 30-year term. The principal-and-interest payment is about $2,212 per month. Pausing six payments means $2,212 x 6 = $13,272 is owed.
| Repayment path | Monthly effect | Balance effect |
|---|---|---|
| Repayment plan over 12 months | About $1,106 added ($13,272 / 12), so roughly $3,318 per month for a year | None once repaid |
| Deferral | Stays about $2,212 | $13,272 zero-interest balance due at payoff or sale |
| Modification (re-amortized at the same 6.5% over 30 years) | About $2,296, roughly $84 more | $363,272 total, with interest accruing on the added amount |
The modification row is simplified. Real modifications often change the rate and extend the term, which can lower the payment but raise the lifetime interest cost. Your actual balance would also be lower than $350,000 after years of payments, so run your own numbers with a monthly mortgage payment calculator.
The real bill can be higher. If your servicer pays property taxes and homeowners insurance from escrow, those payments may have continued during forbearance, leaving an escrow shortfall that also has to be repaid or spread into your payment. Ask for a full reinstatement figure that includes escrow, not just principal and interest.
Can You Get a New Mortgage or Refinance After Forbearance?
Usually yes, but waiting periods apply and they vary by program. The pattern is typically a set number of on-time payments after forbearance ends, or a completed repayment plan, before a new loan is eligible. For a sense of how other credit events work, see the bankruptcy and mortgage approval timeline.
As of 2026, Fannie Mae and Freddie Mac each publish eligibility rules for borrowers with a forbearance history in the Fannie Mae Selling Guide and the Freddie Mac Guide. Exact seasoning requirements are updated periodically, so confirm the current version rather than relying on a number from an older article. FHA, VA and USDA loans have their own requirements, set by HUD, VA and USDA respectively, and each program also lets individual lenders add stricter rules called overlays.
Programs also differ on how they treat a modification or deferral. A conventional loan, an FHA loan and a VA loan may each view the same repayment outcome differently, so ask about your specific file instead of generalizing from someone else’s experience.
That is why one company may decline you while another approves. A retail lender with a single product menu and strict overlays can say no, while other programs, including some Non-QM options available through wholesale lenders, may fit a file with a recent hardship. If you have already been turned down, why your mortgage application was rejected walks through the common causes and fixes. Non-QM loans are underwritten outside standard agency rules, often at different pricing and terms, and approval is never promised.
For a sense of today’s market, the Freddie Mac Primary Mortgage Market Survey publishes the national average 30-year rate weekly. Check the latest posted figure and its date before comparing it to any quote, since rates move and your own rate depends on your credit, loan type and state. Rates in Virginia, Florida, Tennessee and Georgia can price differently from the national average.
Why Does a Broker Compare Options Better After Forbearance?
A broker can check many wholesale lenders on one file, which matters when your history is unusual and each lender sets its own overlays. Duane Buziak shops 500+ wholesale lenders per file. That is the mechanism behind Dare to Compare, Duane’s challenge to put his quote side by side with any other quote you hold, so you can see the difference for yourself. You can read more about the benefits of working with a mortgage broker.
The NoTouch Credit Pull is Duane’s soft-pull pre-approval. It reviews your credit without a hard inquiry, so your first step is a mortgage pre approval without hard pull and a no credit hit mortgage application at the shopping stage. A hard pull comes later, only if you choose to move forward with a loan. After forbearance, that matters, because each avoided inquiry protects a score you are rebuilding. If your score is still low, low credit score mortgage lenders covers where approvals are more likely.
Here is how the structures differ. Competitor details should be confirmed directly with each company before you rely on them. For a deeper look, see LowerMortgageRates vs Rocket Mortgage.
| Feature | Duane Buziak (broker) | Rocket Mortgage | Movement Mortgage |
|---|---|---|---|
| Business model | Broker placing loans with wholesale lenders | Direct lender funding its own loans | Direct lender funding its own loans |
| Lenders accessed per file | 500+ wholesale lenders | One company | One company |
| Soft-pull pre-approval | Yes, NoTouch Credit Pull | Ask the company before applying | Ask the company before applying |
| Non-QM, DSCR, bank statement options | Available through wholesale lenders, subject to the file | Confirm current product menu | Confirm current product menu |
None of this guarantees approval or a particular rate. It describes where your file can be sent, and your credit, equity, income and loan type still decide the outcome.
Is LowerMortgageRates the Same as Lower.com?
No. LowerMortgageRates.com is Duane Buziak, Mortgage Maestro, working with Coast2Coast Mortgage LLC, and it is unaffiliated with Lower.com.
The structural difference is simple. Duane operates as a broker, placing each loan with a wholesale lender that fits the borrower’s file. Lower.com is a separate direct lender that funds loans under its own name. For more on how big-lender quotes compare, read strategies to get lower mortgage rates than big lenders quote you.
The confusion is understandable, because the keyword and the brand share the word “lower.” If you searched for forbearance help and landed here, you should know who you are talking to: a licensed mortgage broker, Duane Buziak, NMLS #1110647, with Coast2Coast Mortgage LLC, NMLS #376205, and no relationship to Lower.com. Verify any broker’s license at NMLS Consumer Access before sharing personal details.
Mortgage Forbearance Consequences: 10 Common Questions
Does forbearance hurt credit?
Not by itself, but reporting errors or earlier missed payments can. Contact your servicer first, ask in writing how the account will be reported, and review your reports for mistakes.
How long can forbearance last?
It depends on your loan type and servicer, and the maximum has varied over time. Ask your servicer for the end date and what happens at that date, and confirm any extension in writing.
Do you repay it all at once?
Usually not. Lump-sum reinstatement is one option, but repayment plans, deferrals and modifications are commonly available. Ask which ones your loan program permits.
Can you refinance during forbearance?
Generally no. Most programs require the loan to be out of forbearance and, often, a stretch of on-time payments first. Confirm the current rule for your loan type.
Can you buy a home after forbearance?
Often yes. A purchase is usually possible once you meet the program’s waiting or seasoning requirement, and your other home may need to be current. Underwriters will review your payment history after the plan ends.
Does forbearance affect FHA or VA loans differently?
Yes. FHA and VA each have their own exit options and post-forbearance rules, and individual lenders may add overlays. Ask about your file specifically.
What is a deferral?
A deferral moves your missed payments to the end of the loan, usually as a separate balance due at payoff, sale or refinance. Your regular payment stays the same, and you should ask whether the deferred amount carries interest.
What is a loan modification?
A modification permanently changes your loan terms, such as the rate, term or balance, to make payments manageable. It can lower your monthly payment while increasing the total cost over time.
Does forbearance show on a credit report?
It can, as a comment code on the mortgage account even when payments are reported current. Pull your reports and see exactly what each bureau shows.
Can a soft pull mortgage pre-approval be done after forbearance?
Yes. A NoTouch Credit Pull from Duane Buziak is a no hard inquiry mortgage pre approval, so you can see your options without adding an inquiry to a file you are rebuilding.
Forbearance Buys Time, Not Forgiveness
Forbearance delays payments but creates a repayment plan and, often, a waiting period before you can borrow again. Know your exit option, check your credit reports, and compare options before you apply anywhere. Anything that adds a hard inquiry should wait until you have done that.
If you live in VA, FL, TN, GA, DC, NC, SC or MD, call 804-212-8663 or request a NoTouch Credit Pull from Duane Buziak at Lower Mortgage Rates by Duane Buziak. Don’t let uncertainty about mortgage rates cost you thousands: discover your personalized options with a trusted mortgage professional who can compare rates across multiple lenders without impacting your credit score. Schedule your free consultation today and take the first step toward securing the best mortgage solution for your unique financial goals. Services are available only in the eight states listed.