Repayment plan
Ask USMI can help explain this term and how it shows up in a mortgage question.
Definition
A repayment plan is a servicing arrangement that lets a borrower catch up past-due amounts by paying extra over a series of future payments. It is not automatic and not the same as deferment.
In plain English
When a loan is behind, a servicer may agree to a plan that spreads the missed amount over coming months. The borrower stays in the existing loan; the schedule of what is due changes by agreement. Deferment pauses or reduces payments for a time. A repayment plan is about catching up. Not every servicer offers the same options.
Technical definition
Consumer glossaries describe a repayment plan as a way to pay past-due amounts over time. USDA handbook uses are program context.
Why it matters
Hardship conversations need this word kept separate from deferment, modification, and foreclosure procedure.
Related terms
Sources reviewed
Glossary of key terms
Source reviewedSeptember 4, 2026
HB-2-3550 Glossary
Source reviewedSeptember 4, 2026
Mortgage key terms
Source reviewedSeptember 4, 2026
Important note
This page is not legal advice and does not say every servicer must offer a repayment plan.
Cite as
Ask USMI about this term
Explore how this term relates to a loan cost or your next mortgage question.