Short answer
Often, depending on how late and how recent. For Fannie Mae, any mortgage payment 60 or more days late in the 12 months before the credit report makes the loan ineligible, and your current mortgage must be current when you apply. For FHA, a few 30-day lates move the file to manual underwriting rather than ending it, though cash-out refinances are stricter.
Fannie Mae's rules
Fannie Mae's Selling Guide (B3-5.3-03) says:
- On the application date, your existing mortgage must be current, meaning no more than 45 days since the last paid installment.
- Any mortgage account with a 60-, 90-, 120- or 150-day delinquency reported in the 12 months before the credit report date makes the loan ineligible.
- If the credit report doesn't show 12 months of mortgage history, the lender verifies it another way, such as a servicer's payment history or 12 months of canceled checks.
A single 30-day late doesn't automatically disqualify you, but it can affect the automated decision.
FHA's rules
HUD's Handbook 4000.1 counts a mortgage payment as late if it isn't paid within the month it's due. For a purchase or no cash-out refinance, the loan must be manually underwritten if, in the 12 months before the FHA case number, any mortgage account shows:
- three or more payments more than 30 days late;
- a 60-day late plus one or more 30-day lates;
- a payment more than 90 days late; or
- fewer than three on-time payments since a forbearance plan ended.
For an FHA cash-out refinance, any delinquency in the past 12 months, a current delinquency, or fewer than 12 payments since a forbearance plan ended moves the file to manual underwriting.
What about forbearance or a loan modification?
Under FHA rules, payments made under a forbearance plan or modification are judged by that plan's terms. If you kept paying as agreed under your original note during forbearance, you aren't treated as late, as long as the plan ends by closing. A modified loan needs at least six payments under the modification before an FHA no cash-out refinance. See forbearance vs. modification.
What should I do now?
- Get current and stay current; recent history weighs most.
- Gather a letter explaining the late payment if there was a one-time cause, such as a servicer transfer. See letters of explanation.
- If the late was a servicer error, see how to fix a servicer error.
Sources
- Fannie Mae Selling Guide, B3-5.3-03, Previous Mortgage Payment History
- HUD Single Family Housing Policy Handbook 4000.1, Update 18 (August 2026), Housing Obligations/Mortgage Payment History
Checked November 2, 2026. Rules and dates change, so confirm current details before you rely on them.
General information only, not tax or legal advice. Program availability, eligibility and terms vary by lender and are subject to change and to underwriting approval. Not a commitment to lend.