Financial hardship and Department of Veterans Affairs-backed mortgages intersect more often than the housing benefit’s reputation suggests. Veterans miss payments for the same reasons anyone does: job loss, medical debt, divorce, a period of reduced income following separation from service. And the consequences of falling behind on a VA mortgage can be serious. As of June 15, 2026, a new option exists for veterans that did not exist before.
The VA Partial Claim Program, authorized by the VA Home Loan Reform Act signed by President Trump on July 30, 2025, and formally launched in June, allows mortgage servicers to bring a veteran’s overdue loan current on the veteran’s behalf, with VA reimbursing the servicer for the overdue amount. The veteran does not pay the overdue amount upfront. Instead, it becomes a separate subordinate claim against the property that is repaid when the home is eventually sold, refinanced, or the loan is paid in full.
Read More: What Is the VA Partial Claim Program? 2026 Rules Explained
In fiscal 2025 alone, VA worked with mortgage servicers to help 173,000 veterans retain their homes through various programs. The Partial Claim Program adds a new tool to that set — one specifically designed for veterans who have the ability to resume regular payments going forward but cannot bring a delinquent balance current in a lump sum.
What the Program Is and Is Not
The Partial Claim Program is a home retention tool; it is designed specifically to keep veterans in houses they already own, not to purchase new ones. It applies only to VA-guaranteed loans that are in default. Veterans who are current on their mortgage have no need for the program and would not qualify for it.
It is also not the only option available when a veteran falls behind. VA’s broader home retention toolkit includes repayment plans that spread overdue amounts across future monthly payments, traditional loan modifications that restructure the loan terms, 30-year and 40-year loan modification options that extend the loan term to reduce monthly payments, and disaster-specific modification programs for veterans affected by federally declared disasters.
The Partial Claim Program sits alongside these options rather than replacing them.
Veterans who are struggling to reach a resolution with their mortgage servicer, or whose servicer has not proactively raised the Partial Claim option, can contact VA directly at 877-827-3702, option 6. VA can intervene with the servicer on the veteran’s behalf when needed.
Read More: 10 Things to Know About VA Loans Before You Buy a Home
The 2030 Deadline and Why It Matters
The VA Home Loan Reform Act includes a sunset provision that terminates the Partial Claim Program on a date five years after enactment, placing the deadline at approximately July 2030. After that date, VA cannot make new partial claims under the program, regardless of a veteran’s circumstances.
The deadline does not affect veterans who complete the program before it ends. But it does mean the program is not a permanent fixture of VA home loan servicing; it is a defined window that will close. Veterans who are currently behind on a VA mortgage and have not explored their options should not assume this tool will still be available if they wait.
What to Do If You Are Behind on a VA Mortgage
Contact your mortgage servicer first. Federal law and VA guidelines require servicers to proactively reach out to borrowers in default and present available options. If your servicer has not done this or if you are having difficulty getting a response, contact VA’s Loan Guaranty Service at 877-827-3702, option 6. You can also find information about all VA home loan assistance programs at va.gov/housing-assistance/home-loans/trouble-making-payments.
Since the VA’s home loan guaranty program began, VA has helped veterans, service members, and survivors purchase more than 29 million homes. The Partial Claim Program is an extension of the same commitment: to ensure that a period of financial hardship does not permanently end a veteran’s relationship with the home their service helped them earn.
Read the full article here