VA Loan Assistance Programs

Borrowers who get into financial trouble often find their mortgage payment is one of the first things to suffer. But there is help from the Department of Veterans Affairs that can make all the difference in preventing loan default and foreclosure.

When reading about this assistance, it’s crucial for homeowners to understand that the longer you delay contacting the VA and the lender, the fewer your options become. Act fast, and you have a wide range of options to save your home.

Know The Basics

And by that, we mean know the most current rules and options. There is a lot of old information bouncing around on the internet about VA home loans. The program was substantially changed between 2017 and 2020, including a major alteration in how VA loan limits are set — there are no more VA loan limits; you negotiate the loan amount with the lender based on current conditions and lender standards.

And some other options have changed over the years, too — don’t rely on outdated information to inform your choices about saving your home. It’s best to call your lender AND the Department of Veterans Affairs to get the most current guidance on VA loan assistance programs.

Contact The VA

One of the VA loan assistance options is financial counseling. The VA official site says if you are a veteran or the spouse of a veteran you can get VA financial counseling even if the loan you have is NOT a VA mortgage or VA refinance loan.

For those who need help specifically with a VA mortgage, you can call the Department of Veterans Affairs at any time to request financial counseling AND assistance from a VA technician.

VA Intervention and Support

The Department of Veterans Affairs can provide direct support to borrowers with VA loans, including financial counseling and help working with your loan servicer. If needed, the VA can assign a loan technician to your case to guide you through your options and help you avoid foreclosure. This type of intervention is only available for VA-backed loans.

In some cases, support is triggered automatically. If your loan becomes 61 days past due, the VA may assign a loan technician to assist you. However, you should still contact your lender and the VA as soon as possible—taking action early gives you more options and better outcomes.

VA Mortgage Loan Advice To Avoid Foreclosure

When talking to the lender and the VA, you should discuss the following foreclosure avoidance options:

• Repayment plan: A structured way to catch up on missed payments over time.
• VA Forbearance: Temporarily pause or reduce your payments to give you time to recover financially.
• VA home loan modification: Add missed payments and related costs to your loan balance and create a new payment schedule.
• Private sale: Sell your home to avoid foreclosure, often used when other options are no longer available.
• Short sale: Sell the home for less than what you owe, with lender approval, to avoid foreclosure.
• Deed-in-lieu of foreclosure: Transfer ownership of the home to your lender instead of going through foreclosure.

VA Advice On What To Do If You Fall Behind On Mortgage Payments

The VA official site advises those having difficulty making mortgage payments to do the following:

• Contact your loan servicer right away
• Request loan forbearance and/or foreclosure avoidance options
• Contact a VA loan technician at 877-827-3702