- Best for
- A short setback that is over, when you can afford more than your normal payment for a while.
- You keep the home
- Yes. The loan itself does not change.
- Watch for
- A plan payment you cannot keep up. A broken plan can put you back in foreclosure.
How a repayment plan works
Your servicer adds up what you missed and divides it over a set number of months. Each month you pay your regular payment plus one slice of the past-due amount. When the plan ends, you are current and the loan carries on as before.
It is usually the first option a servicer looks at, because nothing about the loan has to change. It only works if your income has recovered enough to cover the higher payment.
The limits depend on who backs your loan
- FHA loans: the plan can run up to 24 months. It is generally for homeowners who are behind by up to four monthly payments. When a plan is approved, the servicer must suspend or end the foreclosure.
- Fannie Mae loans: the monthly plan payment cannot be more than 150 percent of your normal payment. Plans longer than 6 months need a full application.
- Freddie Mac loans: a repayment plan lasts more than one month and no more than 12 months.
- USDA guaranteed loans: an informal repayment agreement runs 3 months or less. A longer special forbearance agreement can cure up to 12 months of missed payments.
- VA loans: a repayment plan is one of the options VA lists. Ask your servicer, or call a VA loan technician at 877-827-3702, option 6.
Not sure who backs your loan? See help by loan type.
How to ask for one
- Call the number on your mortgage statement and say you want to be reviewed for loss mitigation, including a repayment plan.
- Ask what the monthly plan payment would be and for how many months, and ask for the terms in writing before you agree.
- Be honest with yourself about the number. If you cannot afford the plan payment, ask about a payment deferral or partial claim or a loan modification instead.
Your protection while you are on a plan
Under federal rules, if a servicer offers you a short-term repayment plan based on an incomplete application, it cannot start a foreclosure, ask a court for a foreclosure judgment, or hold a sale while you are making the plan payments. See your federal rights.
How much time do you have? It depends on your state.
See the foreclosure timeline, deadlines and free local help for the state where the home is.
Common questions
What happens if I miss a payment on a repayment plan?
The plan can be cancelled and the servicer can go back to collecting the full past-due amount, which may mean starting or resuming foreclosure. If you see a problem coming, call the servicer before the due date and ask to be reviewed for a different option.
Does a repayment plan change my interest rate or loan term?
No. A repayment plan only adds a catch-up amount to your payment for a set time. Changing the rate or term is a loan modification.
Other options to compare
- ForbearanceYour servicer agrees to accept reduced payments, or none, for a limited time. The missed amount is still owed and has to be dealt with when the pause ends.
- Payment deferral or partial claimThe missed payments are set aside as a balance with no interest and no monthly payment. It comes due when you sell, refinance or pay off the mortgage.
- Loan modificationYour servicer permanently changes the loan, usually by adding the missed payments to the balance and stretching the term or lowering the rate, so the payment is affordable.
- ReinstatementYou pay all the missed payments, late fees and foreclosure costs in one payment. The loan goes back to normal and the foreclosure ends.
- Short saleYou sell the home for less than the mortgage balance and the lender agrees to take the sale price. It avoids a foreclosure sale when keeping the home is not possible.
- Deed in lieu of foreclosureYou sign the home over to the lender and the lender cancels the foreclosure. It is usually considered after a short sale has not worked or is not practical.
Sources
- HUD Handbook 4000.1, Update 18 (August 2026), FHA loss mitigation
- Fannie Mae Servicing Guide D2-3.2-02, repayment plan
- Freddie Mac: Options to stay in your home
- 7 C.F.R. § 3555.303, USDA guaranteed loan servicing options (eCFR)
- VA: Help to avoid foreclosure
- 12 C.F.R. § 1024.41, loss mitigation procedures (eCFR)