VA launches new program to help veterans struggling with home loans
A Veterans Health Administration sign is displayed outside of the Washington VA Medical Center on June 5, 2025 in Washington, DC. (Photo by Kevin Carter/Getty Images)
The Department of Veterans Affairs (VA) officially launched a new program designed to keep veterans, who may be facing financial difficulties avoid potential foreclosure, stay in their homes.
Big picture view:
The Partial Claim Program is designed to offer veterans a three-month window, during which they are placed on a trial payment plan as their ability to maintain their loan after that is determined. After that period, the mortgage servicer will pay any overdue amount and be compensated by the VA, and that amount is expected to be repaid by the veteran at a later date.
What they're saying:
"We are grateful to Congress and President Trump for creating VA’s Partial Claim Program, which will help keep thousands of Veterans in their homes," said VA Secretary Doug Collins.
How It Works:
The VA explained that the program uses federal funds to repay mortgage servicers for the overdue amount they paid on behalf of the veteran following a trial period designed to see if the veteran will be able to make further payments. The veteran would later have to repay the VA when their home is either paid off, sold, or refinanced.
Step-by-step breakdown
The VA detailed what will happen when a veteran is determined to be at risk of defaulting. It starts when the mortgage servicer identifies such veterans and believes they might qualify for the Partial Claim Program. (List from the VA statement)
- Servicers place qualified Veterans on a three-month trial payment plan to assess their ability to stay current on their loan.
- When a Veteran successfully completes this trial period, the mortgage servicer will pay the overdue amount on the mortgage to make the Veteran current again.
- VA will then pay that same amount to the mortgage servicer.
- Veterans must repay the VA when the loan is paid in full, refinanced, or the property is sold.
Dig deeper:
The Partial Claim Program is not the only option available to veterans at risk of foreclosure. The federal agency listed other options available, including repayment plans, VA traditional loan modification programs, 30 and 40-year loan modifications, VA disaster modifications, and disaster extend modifications.
What you can do:
Veterans who cannot reach a resolution with their mortgage servicer are advised to call the VA at 877-827-3702, option 6. For more information on the Partial Claim Program and VA home loans in general, the VA has posted more information on its Loan Guaranty Service website.
The Source: Information for this article was taken from The Department of Veterans Affairs. This story was reported from Orlando.