PennyMac's skip-a-payment program exists, but it is not automatic or available to everyone

PennyMac, a mortgage servicer and lender, does offer payment deferral options that can include skipping a single month of payments under certain circumstances. However, this is not a standing program you can simply request. Whether you can skip a payment depends on your loan type, your current account status, and whether you are already in financial hardship. The program is most commonly available to borrowers who are current on their loan but facing a temporary cash shortage, or to those already working through a loan modification or forbearance agreement.

The key difference: PennyMac will not let you skip a payment and walk away. Any skipped payment is typically added to the end of your loan term or rolled into a modified payment plan. You are not erasing the payment—you are moving it. This matters because it extends how long you owe money and increases the total interest you pay over the life of the loan.

Key Takeaways

  • PennyMac offers payment deferral options, but skipping a payment is not a standard feature available on demand to all borrowers.
  • Skipped payments are deferred, not forgiven—they are added to your loan balance or the end of your loan term, so you will still owe the money.
  • You must contact PennyMac directly to discuss your situation; the company does not advertise skip-a-payment as a product.
  • Borrowers already in forbearance or loan modification may have skip options built into their agreement, so check your paperwork first.
  • If you miss a payment without prior arrangement, PennyMac will report it to credit bureaus and may begin collection activity.

How to request a payment deferral from PennyMac

Start by calling PennyMac's customer service line at 1-866-549-3676. Have your loan number and current account information ready. Explain your situation clearly: are you current on your loan but facing a one-time cash shortage, or are you already behind? The answer changes what options the servicer can offer.

If you are current, ask specifically whether a one-time payment deferral is available. PennyMac's representatives can review your account and tell you whether deferral is possible under your loan terms. If you are already behind on payments, you will likely be directed toward forbearance or a loan modification instead, which are longer-term solutions.

Do not simply skip a payment and hope to sort it out later. Missing a payment without prior arrangement triggers late fees, credit reporting, and collection notices. A proactive call gives you a chance to work something out before your account is damaged.

What happens to a skipped payment on your loan

When PennyMac defers a payment, the amount does not disappear. Instead, it is handled in one of two ways: either added to your loan balance (increasing what you owe), or tacked onto the end of your loan term (extending how long you pay). Which method applies depends on your specific loan agreement and the deferral arrangement PennyMac offers you.

Example: If your mortgage payment is $1,500 and you skip one month, you will owe an extra $1,500 at some point. If it is added to your balance, your total loan amount goes up and you pay interest on that $1,500 for years to come. If it is added to the end of your loan, you make one extra payment after your scheduled payoff date. Either way, the cost to you is real.

Before you agree to any deferral, ask PennyMac in writing which method they will use and confirm the exact amount that will be added or deferred. Get this in a letter or email so you have proof of what was promised.

Forbearance and loan modification as alternatives to skipping one payment

If you are struggling with more than one month of payments, or if a one-time skip is not enough, PennyMac offers forbearance and loan modification programs. These are different from a simple payment skip and are designed for longer-term hardship.

Forbearance temporarily reduces or pauses your payments for a set period—usually three to six months—while you stabilize your finances. At the end of forbearance, you resume regular payments, and the deferred amount is added back (either to your balance, your monthly payment, or the end of your loan). Forbearance does not forgive the debt; it delays it.

Loan modification actually changes the terms of your loan: it might lower your interest rate, extend your loan term, or capitalize the missed payments into your balance. A modification is more permanent than forbearance and may be the better option if your hardship is long-term. Both require you to demonstrate financial hardship and to be in contact with PennyMac before you fall significantly behind.

What to do if you have already missed a payment

If you have already missed a payment to PennyMac without prior arrangement, call immediately. Do not wait for a collection notice. Explain what happened and ask whether the servicer can work with you on a catch-up plan or deferral at this point.

PennyMac typically reports missed payments to credit bureaus after 30 days of non-payment. Once reported, the damage to your credit is done, but you can still prevent further damage by getting current or entering a formal forbearance or modification agreement. The sooner you contact the servicer, the more options you have.

If you cannot catch up immediately, ask about a repayment plan that spreads the missed payment across several months, or ask whether forbearance is available. Both are better than letting the account age and accumulate late fees.

PennyMac's loan modification and forbearance programs

PennyMac offers several formal programs for borrowers in hardship. The Home Affordable Modification Program (HAMP) is a federal program that PennyMac participates in; it can lower your interest rate or extend your loan term to make payments affordable. The Flex Modification is PennyMac's own product and works similarly but may have different terms.

For temporary hardship, PennyMac offers COVID-19 forbearance (if you were affected by the pandemic) and general forbearance for other hardships like job loss or medical emergency. Forbearance typically lasts three to six months and can be extended in some cases.

To explore these programs, call PennyMac's loss mitigation team at 1-866-549-3676 and ask to speak with someone about your options. Have documentation ready: proof of income, a list of your debts, and an explanation of what caused your hardship. The more complete your picture, the faster the servicer can move.

How skipping a payment affects your credit and your loan

A deferred payment that is arranged in advance does not automatically hurt your credit, but it depends on how PennyMac reports it. If the deferral is documented as an official arrangement (forbearance, modification, or approved deferral), it may be reported as "deferred" rather than "late," which is less damaging. However, some servicers still report any missed payment as late to credit bureaus.

Ask PennyMac in writing how the deferral will be reported to credit bureaus before you agree to it. If they say it will be reported as late, you know the credit hit is coming and can plan accordingly. If they say it will be reported as deferred or not reported at all, get that promise in writing.

The bigger long-term cost is the interest and extended loan term. Deferring a payment means you pay interest on that amount for longer, or you extend your loan and pay more interest overall. Over a 30-year mortgage, deferring even one payment can cost you hundreds of dollars in extra interest.

Frequently Asked Questions

Can I skip a payment if I am current on my PennyMac loan?

PennyMac may allow a one-time payment deferral if you are current and facing a temporary hardship, but this is not may provide. Call the servicer and explain your situation. If you are current and simply want to skip a payment without hardship, the answer is almost certainly no.

What is the difference between skipping a payment and forbearance?

Skipping a single payment is a one-time deferral; forbearance is a formal program that pauses or reduces payments for three to six months. Forbearance requires documented hardship and involves a written agreement. A skip is simpler but less protective if your hardship lasts longer than one month.

Will skipping a payment hurt my credit score?

It depends on how PennyMac reports it. An approved deferral may be reported as "deferred" rather than "late," which is less damaging. But ask the servicer in writing before you agree. If they will report it as late, your credit score will drop, typically by 50 to 100 points.

What happens if I skip a payment without asking PennyMac first?

PennyMac will treat it as a missed payment, charge late fees, and report it to credit bureaus after 30 days. This damages your credit and can trigger collection activity. Always call first to arrange a deferral or forbearance before you miss a payment.

Can I skip multiple payments with PennyMac?

A one-time skip is different from skipping multiple payments. If you need to miss more than one payment, ask about forbearance or loan modification instead. These programs are designed for longer-term hardship and offer more protection than multiple individual skips.