Mortgage Payment Help for Veterans: VA Options & SCRA Protections
If you’re a veteran or active-duty service member struggling with your mortgage payment, help is available through the VA Partial Claim Program, which allows you to bring your loan current without immediate repayment of missed amounts . VA loan forbearance can temporarily pause or reduce payments, and the Servicemembers Civil Relief Act (SCRA) provides critical legal protections, including interest rate caps and foreclosure postponement . Contact your mortgage servicer immediately and call the VA at 877-827-3702 to explore your options.
Quick Facts
| Item | Details |
|---|---|
| Primary Programs | VA Partial Claim Program, Forbearance, SCRA Protections, Loan Modification |
| Eligibility | VA-guaranteed home loan; active-duty, veteran, National Guard, Reserve, surviving spouse |
| Application Process | Contact your mortgage servicer directly |
| VA Contact | 877-827-3702, option 6 (8:00 a.m. – 6:00 p.m. ET) |
| Official Agency | U.S. Department of Veterans Affairs (VA) Loan Guaranty Service |
| Required Actions | Complete 3-month trial payment plan for Partial Claim |
| Updated For | June 2026 (Partial Claim Program launch)Â |
Overview: How the VA Helps With Mortgage Payments
The Department of Veterans Affairs offers multiple programs to help veterans avoid foreclosure and stay in their homes. The VA works with mortgage servicers to provide a “waterfall” of loss-mitigation options, starting with the least disruptive and moving to more comprehensive solutions .
In fiscal year 2025 alone, the VA worked with mortgage servicers to help 173,000 veterans avoid foreclosure . The VA has helped veterans, service members, and survivors purchase more than 29 million homes since the program began, with over 500,000 new VA home loans guaranteed in fiscal year 2025 .
The New VA Partial Claim Program (2026)
What It Is
The VA Partial Claim Program is a new foreclosure-prevention tool launched in June 2026, authorized by the VA Home Loan Reform Act signed into law on July 30, 2025 . The program allows VA to pay the overdue amount on your mortgage to bring your loan current, and you repay that amount later when your loan is paid off, refinanced, or your home is sold .
How It Works
Identification:Â Mortgage servicers identify veterans in default who may qualifyÂ
Trial Period: Qualified veterans are placed on a 3-month trial payment plan to demonstrate ability to stay currentÂ
Servicer Payment:Â Upon successful completion, the servicer pays the overdue amountÂ
VA Reimbursement:Â VA reimburses the servicer for the paid amountÂ
Deferred Repayment:Â The servicer repays VA when the loan is paid in full, refinanced, or the property is soldÂ
Why It Matters
The Partial Claim Program preserves your original mortgage terms and low interest rate . Nearly 70% of active VA loans have rates below 5% . If you were forced into a loan modification at current market rates (6.5%+), your monthly payment could increase by hundreds of dollars . For example:
| Loan Amount | 4.5% Rate (Monthly Payment) | 6.5% Rate (Monthly Payment) | Increase |
|---|---|---|---|
| $400,000 | $1,547 | $1,947 | +$400/month |
Who Qualifies
Veterans with VA-guaranteed loans who are in defaultÂ
Must successfully complete the 3-month trial payment periodÂ
The missed payment amount cannot exceed 25% of the outstanding principal balanceÂ
What Veterans Should Do Next
Contact your mortgage servicer immediately to ask about Partial Claim Program eligibility . If you have trouble reaching an agreement, call VA at 877-827-3702, option 6 .
VA Loan Forbearance
What It Is
Forbearance is a temporary pause or reduction in your monthly mortgage payments during a period of financial hardship . It is not loan forgiveness—missed payments must be repaid, but the goal is to give you breathing room to stabilize your finances .
Common Triggers for Forbearance
Job loss or reduced income
Medical emergencies or unexpected medical expenses
Natural disasters
Deployment-related financial strainÂ
Pros and Cons
| Pros | Cons |
|---|---|
| Temporary payment relief | Not loan forgiveness—payments still due |
| Prevents foreclosure | Interest continues to accrue |
| No late fees | May extend loan term |
| Flexible repayment options | Potential for higher payments later |
Forbearance Repayment Options
| Option | Description |
|---|---|
| Repayment Plan | Spread missed payments over 6–24 months |
| Loan Modification | Permanently adjust loan terms (may change interest rate) |
| Partial Claim | VA pays overdue amount; repay later (new 2026 program)Â |
Veterans May Qualify for Extra Benefits
Check available financial assistance, healthcare programs and other opportunities that may apply to you.
Check EligibilityImportant: You cannot refinance a VA loan while it is actively in forbearance. You must exit forbearance first and meet seasoning requirements before refinancing .
Loan Modification Options
If forbearance or partial claim won’t resolve your situation, the VA offers several loan modification options designed to make payments more affordable:
VA Traditional Loan Modification – Adjusts loan terms to reduce payments
30-Year Loan Modification – Extends the loan to a 30-year term
40-Year Loan Modification – Extends the loan to a 40-year term for maximum payment reduction
VA Disaster Modification – Special modification for veterans affected by natural disasters
Disaster Extend Modification – Extension option for disaster-affected veteransÂ
Servicemembers Civil Relief Act (SCRA) Protections
What It Is
The SCRA is a federal law that provides financial and legal protections for active-duty service members, including National Guard and Reserve members, and their families .
Key Mortgage Protections
| Protection | Details |
|---|---|
| Foreclosure Postponement | No foreclosure, sale, or seizure for nonpayment of a pre-service mortgage debt during active duty or within 9 months after service, unless a valid court order exists |
| Interest Rate Cap | Interest rate on pre-service debts (including mortgages) capped at 6% during service and for one year after active duty |
| Court Protection | Courts must appoint a lawyer to represent you if you’re on active duty and a civil action is filed against you |
Who Qualifies
Active-duty service members
National Guard and Reserve members on active duty
This protection applies to mortgages taken out before active duty beganÂ
What to Do Next
Contact your nearest legal assistance office immediately if you’re on active duty and miss a mortgage payment . The SCRA protections are powerful but require action to invoke.
Other VA Home Retention Options
Repayment Plans
If you’ve fallen behind but can resume regular payments, a repayment plan allows you to spread missed payments over time instead of paying them all at once .
Short Sale
If you owe more than your home is worth, your servicer may support a short sale. The servicer accepts the sale proceeds as full payment of the debt. This could result in a loss or reduction in your future home loan benefit—contact a VA loan technician before deciding .
Deed in Lieu of Foreclosure
You can avoid foreclosure by signing over the deed to your home to your servicer. The home becomes the servicer’s property .
How to Apply: Step-by-Step
| Step | Action |
|---|---|
| 1 | Contact your mortgage servicer immediately—don’t wait until you receive a foreclosure notice |
| 2 | Explain your hardship and ask about available loss-mitigation options (Partial Claim, forbearance, loan modification) |
| 3 | Complete a 3-month trial payment plan if pursuing the Partial Claim Program |
| 4 | If you hit a roadblock, call the VA Loan Guaranty Service at 877-827-3702, option 6 for assistance |
| 5 | If on active duty, contact your legal assistance office to invoke SCRA protections immediately |
Required Documents
Your VA loan number
Recent mortgage statements
Proof of income (pay stubs, tax returns)
Documentation of financial hardship (layoff notice, medical bills, deployment orders)
DD-214 (for veterans)
Military orders (for active-duty, Guard, Reserve)
Common Mistakes to Avoid
Waiting too long to contact your servicer—early intervention gives you more optionsÂ
Ignoring foreclosure notices—if you receive papers, you have a limited time to respond in courtÂ
Assuming forbearance is loan forgiveness—you must repay missed paymentsÂ
Not invoking SCRA protections if you’re on active dutyÂ
Not contacting VA directly if your servicer is unhelpful—VA can help at 877-827-3702Â
Attempting to refinance while still in forbearance—you must exit firstÂ
State and Local Programs
Many states and local governments offer additional mortgage assistance programs for veterans. Contact your state’s housing finance agency or department of veterans services to learn about state-specific programs, including emergency mortgage assistance, property tax relief, and housing grants.
Latest Rule Changes (2026)
VA Partial Claim Program launched June 2026, replacing the expired VASP programÂ
The previous program expired in May 2025, and over 10,000 veterans lost their homes before the Partial Claim Program became availableÂ
Mortgage servicers have until November 28, 2026, to fully implement the Partial Claim Program into their systemsÂ
The Partial Claim amount cannot exceed 25% of the outstanding principal balanceÂ
The program preserves original loan terms and interest ratesÂ
Common Questions
What is the VA Partial Claim Program?
The Partial Claim Program is a new VA foreclosure-prevention tool launched in June 2026 . It allows VA to pay the overdue amount on your mortgage to bring your loan current after you complete a 3-month trial payment period. You repay the amount only when you pay off, refinance, or sell the home .
How do I qualify for the VA Partial Claim Program?
You must have a VA-guaranteed mortgage in default, complete a 3-month trial payment plan demonstrating you can stay current, and the missed payment amount cannot exceed 25% of your outstanding principal balance . Contact your mortgage servicer to start the process .
What is VA loan forbearance and how does it help?
VA loan forbearance temporarily pauses or reduces your monthly mortgage payments during a financial hardship . It gives you breathing room to stabilize your finances but is not loan forgiveness—you must repay missed payments later through a repayment plan, loan modification, or partial claim .
What SCRA protections help with mortgage payments?
The Servicemembers Civil Relief Act caps interest rates on pre-service debts at 6% during active duty and prevents foreclosure without a court order . You must contact your legal assistance office to invoke these protections .
Can I refinance my VA loan after forbearance?
Yes, but you cannot refinance while actively in forbearance. You must exit forbearance and meet seasoning requirements: 3 consecutive on-time payments if you were in a repayment plan or partial claim status, or 6 consecutive payments if the loan was modified .
What happens if I can’t pay my VA mortgage?
Don’t ignore the problem. Contact your mortgage servicer immediately to discuss options. VA offers forbearance, repayment plans, loan modifications, and the new Partial Claim Program . If on active duty, SCRA protections may also apply .
How many veterans does this program help?
In fiscal year 2025 alone, VA worked with mortgage servicers to help 173,000 veterans avoid foreclosure. The VA has helped veterans, service members, and survivors purchase more than 29 million homes since the program began .
What if my servicer won’t help?
You can call the VA Loan Guaranty Service directly at 877-827-3702, option 6, for assistance. A VA loan technician can help you understand your options and work with your servicer .
Does the Partial Claim Program change my interest rate?
No. Unlike some loan modifications that reset your interest rate to current market rates (which are much higher), the Partial Claim Program preserves your original loan terms and low interest rate .
What is the “waterfall” approach to VA foreclosure prevention?
The VA uses a “waterfall” approach: servicers evaluate homeowners for loss-mitigation options in a step-by-step order, starting with the least disruptive (repayment plans) and moving to more comprehensive solutions (partial claim, loan modification) .
Can National Guard and Reserve members get VA mortgage help?
Yes. Guard and Reserve members may qualify if they have sufficient active-duty service time. Legislation has been introduced to expand eligibility for Guard and Reserve members who have served at least 14 days of active duty, inactive duty training, or annual training .
What if I already received a foreclosure notice?
You have a limited time to respond to court papers. If you receive foreclosure documents, contact a VA loan technician and consider consulting a foreclosure defense attorney . Contacting your servicer and VA immediately may still stop the foreclosure process .
Key Takeaways
Act immediately—contact your mortgage servicer as soon as you fall behind; early intervention provides the most optionsÂ
New VA Partial Claim Program launched June 2026; it pays your overdue amount after a 3-month trial period, preserving your low interest rateÂ
Forbearance provides temporary payment relief but requires repayment of missed amountsÂ
SCRA protects active-duty service members with 6% interest caps and foreclosure postponement requirementsÂ
VA helped 173,000 veterans avoid foreclosure in fiscal year 2025Â
Contact VA directly at 877-827-3702, option 6 if your servicer won’t helpÂ
Do not attempt to refinance while in forbearance; you must exit first and meet seasoning requirementsÂ
Complete all paperwork and communications in writing to document your efforts
Official Resources
| Organization | Contact | Website |
|---|---|---|
| VA Loan Guaranty Service | 877-827-3702, option 6 | VA.gov |
| VA Homeless Veterans Assistance | 877-424-3838 | VA.gov/homeless |
| Servicemembers Civil Relief Act | — | MilitaryOneSource.mil |
| Consumer Financial Protection Bureau | 855-411-2372 | ConsumerFinance.gov |
| HUD Housing Counseling | 800-569-4287 | HUD.gov |
🇺🇸 IMPORTANT DISCLAIMER – Veterans Benefits Information
This site provides general information about U.S. Department of Veterans Affairs (VA) benefits for educational and informational purposes only.
- Not Official: We are NOT affiliated with, endorsed by, or connected to the U.S. Department of Veterans Affairs (VA), the Veterans Benefits Administration (VBA), the Veterans Health Administration (VHA), or any other government agency.
- No Legal/Financial Advice: The content on this website is for informational purposes only and does not constitute legal, financial, or medical advice. VA benefits rules change frequently – always consult with an accredited Veterans Service Officer (VSO) or a qualified professional for your specific situation.
- Official Sources: For official, binding information and to apply for benefits, always visit official .gov websites: VA.gov, Benefits.VA.gov, or SSA.gov.
- No Data Collection: This site does not collect, store, or process any personal information. It does not have login forms, contact forms, or any system to capture user data. We never ask for your Social Security Number, bank details, or any personal information.
- 🚨 Scam Alert: The VA and other government agencies never charge fees for benefit applications. If anyone asks for money to "process" your VA claim, it is a scam. Report it to the VA Office of Inspector General at VA.gov/OIG.
- Advertising: This site uses third-party advertising (Adsterra) to cover operational costs. We do not endorse or guarantee any products or services advertised.
đź“Ś Information provided as of June 2026. Always verify current eligibility and rules with official .gov sources.
This site is not affiliated with the U.S. Department of Veterans Affairs or any government agency. All information is for educational purposes only. Please visit VA.gov for official information.
