Mortgage Forbearance Deferred Balloon Calculator
Calculate the post-forbearance repayment outcome for a paused mortgage. After CARES Act and FHA forbearance, most loans use a 'deferred balloon' — missed payments due as a non-interest-bearing lien at loan maturity, refi, or sale. Compare against repayment plans, loan modification, and partial claim alternatives.
Four Common Post-Forbearance Outcomes
(1) Reinstatement — pay missed amount in lump sum at end of forbearance. Rare; usually for short forbearance. (2) Repayment plan — spread missed payments over 3-12 months added to regular payment. (3) Loan modification — restructure loan: extend term, lower rate, recapitalize missed payments into balance. (4) Deferred balloon (partial claim for FHA, deferral for Fannie/Freddie) — missed payments due as zero-interest lien at maturity, refinance, or home sale. Most common outcome for CARES Act forbearances.
FHA Partial Claim
For FHA loans, the missed payments are advanced by HUD as a zero-interest second mortgage (partial claim). Repayment due when the FHA loan is paid off, refinanced, or the home is sold. No monthly payment on the partial claim during the active first mortgage. Subject to combined-claim caps: total partial-claim balance cannot exceed 30% of original FHA mortgage amount. Above the cap, modification or sale required.
Fannie Mae / Freddie Mac Deferral
For conforming loans, missed payments moved to a non-interest-bearing balloon due at loan maturity, refi, or sale. Lender holds the deferred amount separately. Borrower's monthly payment reverts to original P&I. No prepayment penalty on the balloon. The deferral does NOT extend the loan term — original maturity date stands, so balloon may come due on the original payoff date.
Refinancing With a Deferred Balance
Refinance lenders treat the deferred balloon as an existing lien — it must be paid off at closing OR subordinated. Many borrowers don't realize this when planning a rate-and-term refi: the deferred balloon adds to total payoff. Cash-out refis explicitly include the deferred amount. For VA loans, the partial-claim equivalent (VA's PCP) can sometimes be subordinated; FHA requires payoff at refi. Plan refi cash-to-close to include deferred balloon.
Sources: CARES Act §4022 (forbearance), HUD Mortgagee Letter 2020-22 (FHA partial claim), Fannie Mae Lender Letter LL-2020-07. Last updated: May 2026. Not financial advice.
Frequently Asked Questions
What happens to missed payments after forbearance?
Four options: (1) Reinstatement — lump sum repayment. (2) Repayment plan — spread missed amount over 3-12 months. (3) Deferred balloon (Fannie/Freddie) or partial claim (FHA) — zero-interest lien due at maturity, refi, or sale. (4) Loan modification — recapitalize into balance + extend term.
What is an FHA partial claim?
HUD advances missed payments as a zero-interest second mortgage. No monthly payment during the active first mortgage. Repayment due at FHA loan payoff, refinance, or home sale. Capped at 30% of original FHA mortgage balance — above that, modification is required.
Can I refinance with a deferred balance?
Yes, but the deferred balloon must be paid off at closing OR subordinated. Refinance lenders treat the deferred balance as an existing lien. Plan refi cash-to-close to include the balloon payoff. VA and conforming loans sometimes allow subordination; FHA partial claim must be paid off.
Does forbearance hurt my credit?
CARES Act forbearance: no credit harm if the loan was current before forbearance. The lender must continue to report the loan as 'current' if you had requested forbearance under CARES Act. Non-CARES forbearance: depends on lender reporting — most don't ding credit if forbearance is formally agreed.
Should I take forbearance if I can pay?
No — if you can pay, keep paying. Forbearance creates a balloon obligation you'll face later (at maturity, refi, or sale). Only take forbearance for genuine hardship. The CARES Act program ended; new forbearance must be requested under regular FHA/Fannie/Freddie loss-mit policies.