Having trouble making your mortgage payment? Financial struggles happen to the best of us. Mortgage deferral temporarily takes the payment weight off your shoulders while you readjust your finances.
How many times can you defer a mortgage payment? Champions Mortgage’s mortgage broker in Houston, TX, explains how mortgage deferments work below.
What Is Mortgage Deferment?
When you take out a mortgage, you agree to pay the loan in installments. Your lender typically determines the payment amount and frequency. Mortgage payments may include mandatory homeowner’s insurance and private mortgage insurance, depending on the lender’s terms.
Like many homeowners, you might face financial uncertainties, like job loss, medical bills, or unusable cars. Mortgage relief options, like deferment and forbearance, can help you temporarily minimize your expenses.
You request a forbearance to skip or lower mortgage payments for up to a year. Deferments differ because you pay back the skipped payments in a lump sum at the end of a predetermined term.
When Would You Defer Mortgage Payments?
You should request forbearance or deferment before any missed payments. Maintaining open and honest communication with your lender is always the best policy. Keeping them in the loop about your financial hardship prevents you from defaulting while providing leniency. So, how many times can you defer a mortgage payment?
How Many Times Can You Defer a Mortgage Payment?
If you qualify for deferment, you can request one for up to 12 payment periods under most circumstances. However, you cannot ask for these deferments consecutively. Once you apply for one, you should wait at least a year before you request another one.
Other Types of Loan Relief
Forbearance and deferment aren’t the sole sources of relief for which you can apply. You can also explore other outlets, such as:
- Loan modifications: You and your lender work together to change the payment amounts or frequency of your mortgage.
- Home equity investments: Use your equity to pay off your mortgage debt. You can repurchase your equity at your convenience within a predetermined time frame.
- Refinancing: Replace your current mortgage with a bigger loan. You can use the difference to help pay for your mortgage.
Qualifying for Mortgage Relief
If you’re asking, “How many times can you defer a mortgage payment?” you’re likely trying to figure out how to qualify for mortgage relief. What eligibility requirements apply to deferments, forbearances, and other forms of mortgage relief? Like countless other processes, you must document your situation and present the evidence to your lender. Collecting the following elements might prove helpful.
Provide Proof of Financial Struggles
Your lender needs to see proof of your financial hardships. For example, if you lost employment, you might provide a copy of your termination letter. If you recently had to purchase a new vehicle, you could supply a copy of the title and transaction receipts.
Consider Your Mortgage Timeline and Stipulations
Your mortgage must:
- Be a conventional, first-lien loan
- Have 36 months of payments left or more
- Exist for a year or more
You should also have at least two months of delinquency but fewer than six months.
Budget to Pay the Lump Sum
Most deferments don’t follow a typical repayment plan. Your lender might require that you pay back the deferred amount in a single sum. Create a financial plan that allows you to set aside additional money to cover the sum by the end of the deferment period.
Champions Mortgage Offers Flexible Mortgage Loans in Texas
How many times can you defer a mortgage payment? Let’s discuss it together!
Champions Mortgage covers other basics of mortgage loans. As a reputable Texas lender, we cover the entire state with low mortgage rates and quick responses. Call 281-727-2500 to explore homeownership options with us.
