Note: This FAQ comes from the published COVID-19, FAQs on Temporary Purchase & Refinance Eligibility
Can missed payments during forbearance on an existing mortgage loan be refinanced into the new loan amount?
No. Missed payments during a forbearance may not be refinanced into the new loan amount in a limited cash-out or cash-out refinance transaction. However, if a borrower has initiated a repayment plan or accepted a loss mitigation solution (e.g., payment deferral, modification, etc.) and has made three timely payments, the entire existing loan amount, including any remaining outstanding payments under a repayment plan or deferred amounts, may be refinanced into the new loan. See Lender Letter LL-2020-03 for details.