Overview
- The Department of Veterans Affairs opened the VA Partial Claim Program and began accepting servicer submissions on June 15, 2026, and servicers have started processing cases.
- Under the program the VA advances missed mortgage amounts into a subordinate lien that does not accrue interest and carries no monthly payment until the loan is paid off, refinanced, or the home is sold.
- Borrowers must work through their mortgage servicer and complete a three‑month trial payment plan of on‑time payments to demonstrate they can resume regular mortgage payments before the VA will approve assistance.
- Assistance is capped at 25% of unpaid principal with a 30% limit in certain pandemic‑assistance cases, servicers must implement the option by November 28, 2026, and the authority runs through July 30, 2030 unless Congress extends it.
- The program aims to preserve low preexisting rates and avoid costly loan modifications for veterans with temporary hardships but may affect future refinance or sale transactions because the subordinate lien must be cleared at closing.