VA Housing Assistance: Programs for Veterans Facing Payment Difficulty
If you're a Veteran struggling with housing payments, you're not alone. The VA offers comprehensive assistance programs to help you avoid foreclosure, modify your loan, and access emergency resources to keep you housed.
When a VA-guaranteed home loan becomes delinquent, the VA may provide supplemental servicing to assist Veterans in resolving their mortgage delinquency. The servicer has the primary responsibility of servicing the loan to resolve the default, and VA urges all Veterans who are encountering problems making their mortgage payments to speak with their servicers as soon as possible to explore options to avoid foreclosure.
Contrary to popular opinion, servicers do not want to foreclose, as the foreclosure process becomes very costly. The VA works with servicers to help Veterans explore all available options to avoid foreclosure and retain their homes.
Contact VA Loan Technicians
Veterans with VA-guaranteed home loans can contact VA directly:
Depending on a Veteran's specific situation, servicers may offer any of the following options to avoid foreclosure:
Repayment Plan
The borrower makes a regular installment each month plus part of the missed installments. This allows you to catch up gradually while maintaining current payments.
Special Forbearance
The servicer agrees not to initiate foreclosure to allow time for the borrower to repay the missed installments or agrees to place a hold or postpone foreclosure proceedings.
Loan Modification
Provides the borrower a fresh start by adding the delinquency to the loan balance and establishing a new payment schedule with more affordable terms.
Short Sale
When the servicer agrees to allow the borrower to sell their home for a lesser amount than what is currently required to pay off the loan.
Deed-in-Lieu of Foreclosure
The borrower voluntarily agrees to deed the property to the servicer instead of going through a lengthy foreclosure process.
When Servicers Can't Help
In cases where the servicer is unable to help the Veteran borrower, VA has loan technicians who are available to take an active role in working with the mortgage servicer.
Veteran or active-duty borrowers may be able to request relief pursuant to the SCRA. To qualify for certain protections available under the Act, their loan must have originated prior to their current period of active military service.
SCRA May Provide:
- Lower interest rate during military service and for up to one year after service ends
- Forbearance to temporarily suspend or reduce payments
- Prevention of foreclosure or eviction up to nine months from period of military service
VA advises Veterans or Service members who are having difficulty making payments on a non-VA-guaranteed loan to contact their servicer as quickly as possible to explore options to avoid foreclosure.
VA Support for Non-VA Loans
Although for non-VA loans, VA does not have authority to directly intervene on the borrower's behalf, VA's network of loan technicians can offer advice and guidance on how to potentially avoid foreclosure.
Veterans with non-VA guaranteed home loans have the option to refinance to a VA-guaranteed home loan. The Veteran may obtain a VA cash-out refinance for any existing mortgage loan or other indebtedness secured by a lien of record on the home occupied by the Veteran.
Refinancing Requirements
- The amount of the refinancing loan may not exceed 100% of the appraised value of the property
- All fees and costs, including the VA funding fee, may be included in the loan amount
- Any portion of fees and costs that would cause the refinancing loan amount to exceed 100% of the appraised value must be paid in cash at loan closing
If VA is not able to help a Veteran borrower retain their home (whether a VA-guaranteed loan or not), the Department of Housing and Urban Development (HUD) assists homeowners by sponsoring local housing counseling agencies.
Find a HUD-Approved Housing Counseling Agency
Veterans who believe they may be facing homelessness as a result of losing their homes have access to free, confidential support 24 hours a day, 7 days a week.
24/7 Veteran Homelessness Prevention Hotline
The service is free, confidential, and staffed 24/7 with trained counselors who can connect homeless and at-risk Veterans with the nearest VA medical center for help.
Don't Wait Until It's Too Late
If you're struggling with housing payments or facing potential homelessness, reach out immediately. The earlier you contact VA or your servicer, the more options you'll have available to keep your home.
- Contact your servicer immediately if you're having trouble making mortgage payments - they want to help you avoid foreclosure
- Multiple foreclosure prevention options are available including repayment plans, forbearance, loan modification, short sales, and deed-in-lieu
- VA loan technicians are available at 877-827-3702 or 1-800-MyVA411 (Option 5) to help with VA-guaranteed loans
- SCRA protections may provide lower interest rates, forbearance, and foreclosure prevention for active-duty Service members
- Non-VA loan holders can still get advice from VA loan technicians and may be able to refinance to a VA-guaranteed loan
- VA cash-out refinancing is available for up to 100% of appraised value, with fees and costs included in the loan amount
- HUD housing counseling agencies provide additional support - call 800-569-4287 or visit HUD's website
- 24/7 homelessness prevention hotline at 877-4AIDVET (877-424-3838) connects at-risk Veterans with immediate help
- Early intervention is critical - the sooner you reach out for help, the more options you'll have to save your home
- Free, confidential support is available 24/7 - you don't have to face housing challenges alone
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