The Department of Veterans Affairs has formally launched the VA Partial Claim Program, a new initiative designed to help Veterans facing financial hardship stay in their homes and avoid foreclosure.
The program, authorized under the VA Home Loan Reform Act, signed into law on July 30, 2025, creates a structured pathway for mortgage servicers and VA to work together to bring struggling borrowers current on their loans.
Under the new system, mortgage servicers identify Veterans who are in default and may qualify for assistance. Those Veterans are placed on a three‑month trial payment plan to demonstrate their ability to maintain regular payments. When the trial period is successfully completed, the servicer pays the overdue amount to bring the loan current — and VA reimburses the servicer for that same amount.
Servicers must repay VA when the loan is paid off, refinanced, or when the property is sold.
VA Secretary Doug Collins said the program represents a major step forward in protecting Veteran homeowners. “We are grateful to Congress and President Trump for creating VA’s Partial Claim Program, which will help keep thousands of Veterans in their homes,” Collins said.
The Partial Claim Program joins a suite of existing home‑retention tools that VA and mortgage servicers use to prevent foreclosure. In fiscal year 2025 alone, VA worked with servicers to help 173,000 Veterans keep their homes. Other available options include:
- Repayment Plans
- VA Traditional Loan Modifications
- 30‑Year Loan Modifications
- 40‑Year Loan Modifications
- VA Disaster Modifications
- Disaster Extend Modifications
VA encourages Veterans experiencing financial difficulty to contact their mortgage servicer or VA loan specialists as early as possible to explore available solutions.
