Program Description

If you're a Veteran or Servicemember with a VA-guaranteed loan, the Department of Veterans Affairs (VA) has a network of Regional Loan Centers that can offer advice and guidance during times of financial hardship.

Visit the Home Loans page or call 1-877-827-3702 to speak with a VA loan technician.

Unlike a VA-guaranteed home loan, VA does not have the authority to act on your behalf for conventional loans. You must contact your mortgage servicer as quickly as possible when faced with financial hardship.

General Program Requirements

VA does not have the authority to take a second-lien position on a property. In the case of disaster, the Secretary may guarantee a loan whether or not it is subordinate to a higher lien through a public entity providing disaster assistance.

You may qualify for VA-guaranteed loan if you are a(n):

  • Eligible Veteran or Servicemember.
  • Current Reserve or National Guard member (after 6 creditable years of service).
  • Certain surviving spouse.

Commissioned Officers of the Public Health Service (PHS) and National Oceanic and Atmospheric Administration (NOAA) qualify as active duty members and Veterans once discharged.

Length-of-service requirements may apply.

Loan Terms:

The mortgage servicer has the main responsibility of working to resolve the default. When VA deems other information or action is needed, we initiate contact with you to:

  • Offer financial counseling.
  • Discuss the loss mitigation options considered.
  • Sometimes serve as an intermediary between you and your mortgage servicer to negotiate a resolution.

VA then helps the servicer and you arrange a loss mitigation option, like one of those noted below:

  • Repayment Plan - You pay a regular payment plus part of the missed payments each month until you bring the loan current.
  • Special Forbearance - The servicer agrees not to start foreclosure to allow you time to repay the missed payments, like if you're waiting for a tax refund.
  • Time to arrange a private sale - The servicer agrees to delay foreclosure to allow a sale to close if it will pay off the loan.
  • Loan Modification - You get a fresh start by adding the missed payments to the loan balance and creating a new payment schedule.
  • Refunding - VA can consider refunding (buying) the loan and modifying it to make the payments easier for you to afford.
  • Short Sale - You sell your home for less than what you owe, and VA pays the difference, up to the maximum guaranty on the loan.
  • Deed-in-Lieu of Foreclosure - You voluntarily deed the property to the servicer to avoid foreclosure and VA pays the difference between the payoff and the net property value.

Read the Delinquency Assistance (PDF, 94 KB) fact sheet to learn more. You may also read VA Guidance on Natural Disasters (PDF, 146 KB).

Application Process

VA offers loss mitigation help to all Veterans with a VA-guaranteed loan. For Veterans without a VA-guaranteed loan, we can offer financial counseling, but have no legal standing to act directly with the mortgage loan servicer on your behalf.

Call 1-877-827-3702 for home loan assistance.

Visit the Home Loans page to find more information.

Last Updated: 01/22/2020