Falling behind on a mortgage payment is stressful, and for years veterans with VA loans had limited options once pandemic-era relief ended. In 2026, that changed. The VA finalized a partial claim program, a permanent foreclosure-prevention tool created by the VA Home Loan Program Reform Act of 2025.
How it works
Under the program, a borrower's loan servicer can bring a delinquent VA loan current by having the VA cover part of the missed payments. That amount is set aside as a separate, subordinate lien, and it's repaid later, when you sell the home, refinance, or pay off the original mortgage, rather than being added to your monthly payment.
Who may be eligible
The program is designed for borrowers who've recovered from a temporary financial hardship. Reporting on the rollout indicates borrowers generally need to complete a three-month trial payment plan before a partial claim is available. Eligibility and terms are set by the VA and your servicer, so confirm the details with them.
Timeline
- 2025: The VA Home Loan Program Reform Act becomes law, creating the permanent partial claim option.
- June 2026: The VA finalizes its updated loss mitigation waterfall and partial claim policy.
- Nov. 28, 2026: The date servicers must update their systems and processes. Some large servicers moved earlier.
If you're behind right now
- Call your servicer early. Ask about every VA loss mitigation option, not just one.
- Don't ignore notices. Options narrow the longer a loan stays delinquent.
- Get free housing counseling if you want an independent perspective. HUD-approved counselors can help.
The VA home loan benefit is meant to help veterans keep their homes, not just buy them.
Questions about your VA benefit?
Talk with a VA loan specialist. No pressure, no obligation.
Get Pre-QualifiedVeteran Mortgage One is a DBA of MortgageOne, Inc., NMLS #898812, and an Equal Housing Lender. This article is for general information only and is not legal, tax, or financial advice. Program rules, fees, and eligibility are set by the VA and lenders and can change. All loans are subject to credit approval, underwriting, and property eligibility requirements.