If you’re a Veteran who is falling behind on your home loan, the VA Home Loan Program Reform Act, which was signed into law on July 30, offers a crucial lifeline through a partial claim program which provides federal assistance for Veterans struggling with VA-backed mortgages.
VA.gov explains that “Veterans and Servicemembers with home loans who are experiencing difficulties paying their mortgage, we cannot stress enough the importance of contacting your loan servicer, the company that collects your monthly mortgage payments, as soon as possible. Your loan servicer can help you explore different options to avoid foreclosure. Contrary to popular opinion, servicers really do not want to foreclose because foreclosure costs a lot of money”.
Under the VA Home Loan Program Reform Act If the loan servicer is unable to help the VA may be able to help. “For Veterans and Servicemembers with VA home loans, VA is authorized to provide direct and more in-depth assistance to help arrange a suitable home retention option. These may include foreclosure alternatives such as a loan modification or repayment plan. Besides the no-downpayment feature of VA home loans, this assistance is one of the primary benefits of the program.”
How to Get Help
The VA advises that “If you’re having trouble making your mortgage payments, contact your loan servicer right away. They will work with you to try to find a solution to your situation.”
“If you’re nervous about contacting your servicer, or if you’d like [VA’s] help and advice, contact a VA loan technician at 877-827-3702 (TTY: 711)…Monday through Friday, 8:00 a.m. to 6:00 p.m. ET.
You can also send a message online through [VA’s] Loan Guaranty support portal. You’ll need to sign in or create an account first.”
“Even if you are a Veteran or Servicemember with a conventional or Federal Housing Administration (FHA) mortgage, VA can still provide financial counseling and guidance on how to approach your loan servicer to explore home retention options,” the agency says.
For more on this subject go to: https://www.va.gov/housing-assistance/home-loans/trouble-making-payments/
The VA Home Loan Program Reform Act has replaced the previous mortgage rescue program, the VA Servicing Purchase (VASP) Program which closed to new submissions on May 1, 2025.
