For Veterans or Servicemembers who have a VA-guaranteed conventional or sub-prime loan, the Department of Veterans Affairs (VA) has a network of eight Regional Loan Centers that can offer advice and guidance during times of financial hardship.
Borrowers may visit the Home Loans Information page, or call toll free -1-877-827-3702 to speak with a VA Loan Technician. However, unlike when a Veteran has a VA-guaranteed home loan, VA does not have the authority to intervene on the borrower's behalf for conventional loans. It is imperative that a borrower contact his/her mortgage servicer as quickly as possible when faced with financial hardship.
General Program Requirements
Persons who may qualify for VA-guaranteed loans include:
- Eligible Veterans / Servicemembers
- Current Reserve and National Guard members (usually after 6 years of service)
- Certain surviving spouses
Commissioned Officers of the Public Health Service and National Oceanic and Atmospheric Administration are considered to be active duty members and Veterans, once discharged.
Length-of-service requirements apply, in most cases.
Loan TermsThe mortgage servicer has the primary responsibility for servicing the loan to resolve the default. When VA decides additional information or action is needed, VA initiates contact with the Veteran to offer financial counseling, discuss loss mitigation options that have been considered, and sometimes serve as an intermediary between the Veteran and mortgage servicer to negotiate a resolution to the default. VA then helps the servicer and the borrower to arrange an appropriate loss mitigation option, such as:
- Repayment Plan: The Veteran may pay a regular payment plus part of the delinquency each month over a period of time until the loan is brought current;
- Special Forbearance: Temporarily suspend payments to allow the Veteran time to sell the property or reinstate the loan;
- Loan Modification: Provide the Veteran a fresh start by adding the delinquency to the loan balance and establishing a new payment schedule;
- Refunding: VA can consider refunding (purchasing) the loan and modifying it to make the payments more affordable to the Veteran;
- Compromise Sale / Short Sale: The Veteran sells their home for an amount less than what is owed at current market value with VA paying the difference, up to the maximum guaranty on the loan; or
- Deed-in-Lieu of Foreclosure: The Veteran voluntarily deeds the property to the servicer to avoid the foreclosure process, with VA paying the difference between the payoff and the net property value.
Your Next StepsThe following information will lead you to the next steps to apply for this program.
Application ProcessFor more information, see the Program Contact Information below.
Program Contact Information
If you have questions:
To apply for additional benefits and view your benefit status, open an eBenefits Premium account. eBenefits is a one-stop source for information on VA benefits and services. With a free Premium level eBenefits account, Veterans, Servicemembers and their family members can conduct self-service transactions such as checking claim status information, GI Bill enrollment, and obtaining copies of civil service preference letters, DD Form 214, and other personal information. For further information and to register for a free Premium level account, visit the eBenefits website.