VA Partial Claim Program 2026: Veterans and active-duty military homeowners who have fallen behind on their mortgage payments now have a new tool to help them keep their homes.
The U.S. Department of Veterans Affairs officially opened its new VA Partial Claim Program on June 15, 2026, creating a pathway for eligible borrowers to bring their mortgages current without refinancing, changing their interest rates, or increasing their monthly payments. The program stems from the VA Home Loan Program Reform Act, which became law on July 30, 2025.
The launch comes after many veterans spent more than a year waiting for a replacement to the Veterans Affairs Servicing Purchase (VASP) program, which stopped accepting new submissions in May 2025. The new initiative aims to prevent avoidable foreclosures while helping borrowers stay in their homes.
What is the VA Partial Claim Program?
The VA Partial Claim Program allows the Department of Veterans Affairs to cover certain overdue mortgage amounts on behalf of eligible homeowners who have fallen behind on their VA-backed loans.
Instead of adding the missed payments to the primary mortgage, the VA places the amount into a separate subordinate lien attached to the property. The borrower does not make monthly payments on this lien, and it does not accrue interest. The balance becomes payable only when the homeowner sells the property, refinances the mortgage, or fully pays off the original home loan.
Officials say the program is designed to help borrowers who experienced temporary financial hardships but can now afford to resume their regular mortgage payments.
VA Partial Claim Program 2026: Why the Program Matters for Veterans?
Many veterans secured mortgages when interest rates were historically low. Traditional loan modifications often require restructuring the loan, which can expose borrowers to higher interest rates and potentially higher costs over time.
The new partial claim option gives homeowners a chance to keep their existing mortgage terms intact while resolving delinquent payments. Industry experts have described the program as a payment-neutral solution that prioritises home retention.
Who Can Qualify for the VA Partial Claim Program 2026?
To be considered for a VA Partial Claim, borrowers generally must meet several requirements:
- The mortgage must be a VA-guaranteed loan.
- The property must serve as the borrower’s primary residence.
- The homeowner must be in default or at risk of default.
- The borrower must demonstrate the ability to continue making regular mortgage payments.
- A three-month trial payment plan must be completed before approval.
- The program is generally available only once per loan, although certain disaster-related exceptions may apply.
Mortgage servicers and VA officials review each case individually before approving assistance.
VA Partial Claim Program 2026: What is the 25% Assistance Limit?
The amount the VA can advance through a partial claim is capped at 25% of the unpaid principal balance of the loan.
Borrowers who previously received certain pandemic-era mortgage assistance may qualify for an expanded limit of up to 30%.
For example:
- A homeowner with a remaining loan balance of $300,000 may qualify for up to $75,000 under the standard cap.
- Eligible borrowers under the expanded limit could receive as much as $90,000.
The assistance may cover more than missed mortgage payments. It can also include:
- Delinquent property taxes
- Homeowners insurance obligations
- Certain homeowners’ association dues
If the amount owed exceeds the cap, servicers may explore combining a partial claim with other loss-mitigation tools.
VA Partial Claim Program 2026: VA Partial Claim vs. Loan Modification
Although both options help struggling homeowners avoid foreclosure, they address different financial situations.
VA Partial Claim
A partial claim works best when the hardship was temporary, and the borrower can afford the current mortgage payment going forward.
Benefits include:
- No change to the interest rate
- No change to the loan term
- No increase in monthly mortgage payments
- Delinquent amounts moved to a deferred lien
- Loan Modification
A loan modification changes the structure of the mortgage itself.
It may involve:
- Extending the repayment term
- Rolling missed payments into the loan balance
- Adjusting the interest rate
This option may be more appropriate when the current mortgage payment remains unaffordable. However, because today’s interest rates are generally higher than those secured by many borrowers in previous years, some homeowners could face higher costs after modification.
VA Partial Claim Program 2026: How to Apply for VA Partial Claim Program?
Homeowners cannot apply directly through the VA website portal. Instead, the process runs through their mortgage servicer.
Contact Your Mortgage Servicer
Borrowers should reach out to the lender’s loss-mitigation department and ask about VA home-retention options, including the Partial Claim Program.
Submit Hardship Documentation
Servicers typically request documents explaining the financial hardship, along with proof of income and other supporting financial records.
Complete a Financial Review
The lender evaluates available loss-mitigation options and determines whether the borrower qualifies for a partial claim.
Finish the Trial Payment Plan
Eligible borrowers usually must complete a three-month trial period by making consecutive on-time mortgage payments.
VA Review and Approval
After the trial period, the servicer submits the case to the VA for final review and approval.
Recording of the Lien
Once approved, the delinquent amount becomes a subordinate lien on the property, and the original mortgage returns to its current status.
VA Partial Claim Program 2026: What Happens After Approval?
Once the process is complete:
- The primary mortgage becomes current.
- The borrower resumes normal monthly mortgage payments.
- The subordinate lien carries no monthly payment obligation.
- The balance remains deferred until sale, refinance, or loan payoff.
The lien will appear during future title searches and typically must be settled during refinancing or property transfer transactions.
VA Partial Claim Program 2026: Common Reasons Applications Are Rejected
Not every borrower qualifies for the program.
Some of the most common reasons for denial include:
Permanent Financial Hardship
If the borrower cannot reasonably afford future mortgage payments, a partial claim may not solve the underlying issue.
Failure to Complete the Trial Plan
Missing payments during the required three-month trial period can result in disqualification.
Amount Owed Exceeds Program Limits
Some delinquencies may surpass the maximum amount the VA can cover.
Property Is Not a Primary Residence
Investment properties and second homes generally do not qualify.
Missing or Inconsistent Documentation
Incomplete paperwork or conflicting financial information can delay or prevent approval.
Previous Partial Claim Usage
The program generally allows only one partial claim per loan unless specific disaster-related exceptions apply.
VA Partial Claim Program 2026: Program Scheduled Through 2030
The VA Partial Claim Program is authorised for five years under the VA Home Loan Program Reform Act and is currently scheduled to remain available through July 30, 2030, unless Congress extends the authority. Mortgage servicers have until November 28, 2026, to fully implement the program within their systems, although submissions began on June 15, 2026.
For thousands of veterans struggling with temporary financial setbacks, the new program could provide a critical opportunity to avoid foreclosure while preserving the mortgage terms they worked hard to secure.
