Refinancing a Jumbo Mortgage After a COVID Forbearance

Mortgage and Lending with US Bank NMLS: 22343

Refinancing a Jumbo Mortgage After a COVID Forbearance


Despite some recent setbacks that see COVID cases increasing, many of us are optimistic that vaccination rates will continue to go up and all of America will eventually commit to getting the worst of the virus behind us once and for all. There is no doubt that as we headed into the summer, we could feel the economy coming back on line and the country getting back to work. Sure the recovery has been uneven, but compared to the uniform bleakness of last summer, there could only be reason for hope this time around.


Not surprisingly, the progress we're seeing in the general economy has carried over to what we're seeing in the mortgage industry --- many homeowners who took advantage of COVID forbearance and payment deferral plans are now back to work, back on their feet, seeing those arrangements draw to a close and contemplating their best options for long-term, future financing. This happens to coincide with an ongoing low rate environment, and that has opened the door to a refinance for a good percentage of owners. But wait... If a borrower has had a recent forbearance or deferral, and has a jumbo loan, can he or she even refi at all?



The answer is "Yes!" But if you have had a forbearance or deferral plan, you have a jumbo loan and you are out there researching a refinance, you are very likely going to get some conflicting information. A key thing to remember is that not all jumbo lenders are created. Because they are not required to follow the "Agency" guidelines, that is, the rulebook that governs conforming loans as dictated by Fannie Mae and Freddie Mac, jumbo mortgage lenders will have different demands for refinancing post-COVID.  Here's what we're seeing for the most lenient of our investors:


Repayment Plan

The homeowner must have completed the full repayment plan or made at least three consecutive timely payments (and not missed any other payments under the program).


Payment Deferral

The homeowner must have made at least three consecutive timely payments following the effective date of the deferral agreement.


Modification Trial Payment Plan

The homeowner must have completed the trial payment plan.



If you are in doubt about whether or not you will meet the requirements above, get in touch and we can figure it out --- often without any credit checks or exchange of any other personal documents. From there, if a refinance looks promising, the process is IDENTICAL to the one employed by a borrower who has not gone through any sort of hardship plan. We understand the nature of these inquiries and the place from which they stem. If you need a hand with your scenario, extend yours to us today.



Wash your hands,



Rob Spinosa
SVP of Mortgage Lending

Guaranteed Rate
NMLS: 22343 
Cell/Text: 415-367-5959


Marin Office:  324 Sir Francis Drake Blvd., San Anselmo, CA  94960

Berkeley Office:  1400 Shattuck Ave., Suite 1, Berkeley, CA  94709

*The views and opinions expressed on this site about work-related matters are my own, have not been reviewed or approved by Guaranteed Rate and do not necessarily represent the views and opinions of Guaranteed Rate.  In no way do I commit Guaranteed Rate to any position on any matter or issue without the express prior written consent of Guaranteed Rate's Human Resources Department.


Guaranteed Rate. Illinois Residential Mortgage Licensee NMLS License #2611 3940 N. Ravenswood Chicago, IL 60613 - (866) 934-7283

Comments (6)

Anna "Banana" Kruchten
HomeSmart Real Estate - Phoenix, AZ

Rob thank you for this timely information on jumbo loan re-fi's.  I wasn't aware of this at all.  It just might come in handy for a few folks on our list.

Aug 11, 2021 04:33 PM
Lise Howe
Keller Williams Capital Properties - Washington, DC
Assoc. Broker in DC, MD, VA and attorney in DC

I recently ran into this with a client trying to buy a new property while using Quicken loans - she had made her 3 payments - she was current but they were not going along - UGH - she finally made it to the "C-Suite" and got them to close her loan 

Aug 12, 2021 05:57 AM
Dr. Paula McDonald
Beam & Branch Realty - Granbury, TX
Granbury, TX 936-203-0279

Great information for so many. Thank you for this post as it will help many navigate this path.

Aug 12, 2021 06:42 AM
Laura Cerrano
Feng Shui Manhattan Long Island - Locust Valley, NY
Certified Feng Shui Expert, Speaker & Researcher

I think there are a lot of folks in the same boat or shall I say house these days after Covid

Aug 12, 2021 06:50 AM
Jeff Dowler, CRS
eXp Realty of California, Inc. - Carlsbad, CA
The Southern California Relocation Dude

Hi Rob:

Great education  here that will possibly help a number of people who find themselves in just this situation. Hopefully the word will get out and those in need will be on the phone with you. Wish I had someone to refer to you for help!


Aug 12, 2021 08:15 PM
Laura Cerrano
Feng Shui Manhattan Long Island - Locust Valley, NY
Certified Feng Shui Expert, Speaker & Researcher

Glad to see so many of you guys are in the chain. All the best! Love and light

Aug 13, 2021 11:55 PM