Can you get a HELOC if you're behind on your mortgage?
Recent mortgage trouble is the hardest thing for a HELOC lender to look past.
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Can you get a HELOC after mortgage forbearance?
Often, once the forbearance has ended. Most HELOC lenders want 12 months of on-time mortgage payments. After a forbearance, many want you current with several on-time payments since; after a modification, often 12 months or more. You aren't eligible while still in forbearance. Non-QM lenders can be more flexible.
On this page
If you're behind now
Talk to your mortgage servicer first about repayment plans. Adding a HELOC payment while behind usually makes things worse.
Use a free calculator, or get your HELOC rate from Shawn.
After you're caught up
- Keep every payment on time and on autopay.
- Keep proof of the forbearance or modification ending.
- Compare HELOC and non-QM options once you have 6–12 months of history.
Typical lender timelines
| Situation | Common requirement |
|---|---|
| Currently in forbearance | Not eligible until it ends |
| Forbearance ended, reinstated in full | Often eligible once current |
| Forbearance ended with a repayment plan or deferral | Often three or more on-time payments since |
| Loan modification | Often 12 months of on-time payments under the new terms |
| Recent 30-day late on the mortgage | Often 12 months clean history |
Deferred balances
If missed payments were moved to a non-interest balance due at the end of the loan (a partial claim or deferral), the lender counts that balance in your combined loan-to-value. A partial claim on an FHA loan is a separate lien held by HUD, which reduces the room for a HELOC.
If you're struggling now
Talk to your mortgage servicer about forbearance, repayment plans or modification before you fall behind. A HUD-approved housing counselor can help for free. Borrowing against your home to make mortgage payments is usually a sign to pause and get advice first.
Rebuilding eligibility
Make every payment on time, keep card balances low, and save reserves. When you apply, a short letter explaining the hardship and how it was resolved helps the underwriter.
Example
A homeowner used six months of forbearance after a layoff, then moved the missed payments to a deferral due at payoff. He's been current for five months. Most HELOC lenders want a few more months of payments; a credit union approves him at month six with the deferred amount counted in his combined loan-to-value.
Checklist
- Forbearance end letter.
- Proof of on-time payments since.
- Any deferral or partial claim statement.
Related question: What if you can't pay your HELOC?
Also asked
Does a forbearance show on my credit report?
Sometimes. Under the pandemic-era CARES Act, mortgages in forbearance that were current were reported as current; outside those programs, reporting depends on the servicer. HELOC lenders can still see a forbearance in your mortgage history and will ask about it.
Can I get a HELOC to catch up on missed mortgage payments?
Usually not. Most HELOC lenders won't open a line while your mortgage is delinquent, so ask your servicer about a repayment plan, deferral or modification first. A HUD-approved housing counselor can help for free.
Will a modification permanently block a HELOC?
No, a loan modification doesn't block a HELOC forever. After about 12 months of on-time payments under the modified terms, many HELOC lenders will consider you again.
Can I get a HELOC from a different lender than my mortgage servicer after forbearance?
Yes, you can apply for a HELOC with any lender after forbearance, not just your mortgage servicer. Every HELOC lender reviews your mortgage payment history, no matter who services the loan.
Do non-QM lenders have shorter HELOC waiting periods after forbearance?
Often, yes, but at higher rates. Non-QM lenders can approve a HELOC sooner after forbearance or a modification because they look at the reason for the hardship and how you recovered.
Will my credit score recover after forbearance?
Usually, yes. If your mortgage payments were reported as current during forbearance, or you caught up afterward, the credit score impact may be small. On-time payments and low card balances help it recover.
Does a deferral reduce how much I can borrow?
Yes. A deferred or partial-claim balance is still owed, so lenders add it to your mortgage balance when they calculate combined loan-to-value. On a $600,000 home with $350,000 owed and $12,000 deferred, an 85% cap leaves room for about $148,000 rather than $160,000.
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Sources
Official sources behind this guide.
- What is the difference between a home equity loan and a HELOC? · Consumer Financial Protection Bureau
- What you should know about home equity lines of credit (booklet, PDF) · Consumer Financial Protection Bureau
- Find a HUD-approved housing counselor · Consumer Financial Protection Bureau