New VA Partial Claim Program May Help Veterans Avoid Foreclosure

Effective June 15, 2026

If you have a VA-guaranteed home loan and have fallen behind on your mortgage, there is now another option that may help you become current and remain in your home.

VA launched the VA Partial Claim Program on June 15, 2026. The program allows qualifying mortgage arrears to be resolved without requiring the veteran to immediately pay the entire delinquent amount. VA News

Who does this apply to?

This update matters specifically to veterans and other eligible borrowers who:

Have a VA-guaranteed home loan

Are behind on their mortgage and Are trying to keep their home and avoid foreclosure

This is not a new home-loan benefit for purchasing a house. It is a foreclosure-prevention option for existing VA-backed mortgages in default.

How does it work?

Your mortgage servicer first evaluates whether you qualify under VA's loss-mitigation process.

If you qualify for a VA Partial Claim, you'll be placed into a three-month Trial Payment Plan to demonstrate that you can make the required ongoing mortgage payment. VA News

If you successfully complete that trial period:

Your mortgage servicer advances the amount necessary to bring your mortgage current.

VA reimburses the servicer for that amount.

The amount paid by VA becomes a separate debt owed to VA. It isn't free money and the delinquent balance doesn't simply disappear. VA News

When do I repay the partial claim?

The partial claim generally becomes payable when the underlying mortgage reaches one of the events requiring repayment, including when the home is sold, the mortgage is refinanced, or the original loan is paid in full. VA News

So, in plain English: The program can move qualifying past-due mortgage debt out of your immediate mortgage problem so you can get current and stay in your home.

It does not forgive that debt.

Is this automatic?

No. This isn't a payment VA automatically sends to veterans.

Your mortgage servicer identifies and evaluates borrowers under VA's loss-mitigation process and determines whether the Partial Claim option applies. VA's loss-mitigation waterfall includes other options as well, such as repayment plans and 30- or 40-year loan modifications. VA News

Important: Servicers are still implementing the program

Although the VA Partial Claim Program became effective June 15, 2026, VA's current guidance gives mortgage servicers until November 28, 2026 to complete implementation of the new Partial Claim Program and Loss Mitigation Waterfall. Benefits

That distinction matters if you're reading this page before November 28.

If your servicer tells you it isn't yet fully processing the new program, that does not necessarily mean the program doesn't exist or that you aren't potentially eligible.

What should I do if I'm behind on my VA mortgage?

Don't wait until foreclosure is imminent.

Contact your mortgage servicer and ask specifically about your VA loss-mitigation options, including whether you can be evaluated for the VA Partial Claim Program.

If you're having trouble reaching a resolution with your mortgage servicer, VA says borrowers can contact the VA Loan Guaranty Service at:

877-827-3702 — Option 6

VA can assist veterans having difficulty resolving their VA-backed mortgage situation with their servicer. VA News

One more thing worth knowing

The Partial Claim isn't necessarily the first or only option available.

VA's loss-mitigation process includes several possible ways of keeping a veteran in the home. The Partial Claim is one tool within that larger process. VA News

So if you're behind on your mortgage, the important question isn't simply:

“Do I qualify for a Partial Claim?”

It's:

“What VA home-retention options do I qualify for?”

Verify It Yourself

VA — Partial Claim Program announcement

VA — Current Partial Claim implementation information

VA — Home Loan servicing assistance

Program effective: June 15, 2026

Servicer implementation deadline: November 28, 2026

Last verified: October 6, 2026