The U.S. Department of Veterans Affairs has launched a new program aimed at helping financially struggling veterans avoid foreclosure and remain in their homes.
The VA Partial Claim Program was authorized under the VA Home Loan Reform Act, signed into law by President Donald Trump on July 30, 2025. The program is designed to assist veterans who have fallen behind on their mortgage payments by bringing their loans current while providing a path to long-term home retention.
Under the program, mortgage servicers will identify eligible veterans who are in default on their VA-backed home loans. Qualified borrowers will first complete a three-month trial payment plan to demonstrate their ability to maintain regular mortgage payments. Once the trial period is successfully completed, the mortgage servicer will advance the overdue amount needed to bring the loan current.
The Department of Veterans Affairs will then reimburse the servicer for that amount. The funds must be repaid to VA when the mortgage is paid off, refinanced, or the home is sold.
The new initiative comes as many veterans continue to face housing and financial challenges. According to the National Coalition for Homeless Veterans, an estimated 32,882 veterans experienced homelessness on a single night in January 2024, although that figure represented the lowest level recorded since federal tracking began in 2009. Federal officials have credited housing assistance programs and targeted interventions with helping reduce veteran homelessness by more than 50% over the past decade.
Financial experts note that veterans can face unique challenges in meeting housing obligations both during and after military service. Frequent relocations, deployments, service-related disabilities, difficulties transitioning to civilian employment, rising housing costs, inflation, and increases in property taxes and homeowners’ insurance can place significant strain on household budgets. Industry data also showed rising mortgage delinquencies among VA loan borrowers in recent years as many families struggled with higher living expenses and debt obligations.
Foreclosure prevention has become an increasing focus for federal officials. The Department of Veterans Affairs reported helping more than 158,000 borrowers avoid foreclosure during fiscal year 2024, while housing advocates have warned that veterans who fall behind on mortgage payments can be at greater risk of housing instability and, in some cases, homelessness if assistance is not available.
“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,” said VA Secretary Doug Collins.
The new initiative is one of several foreclosure prevention tools offered by VA. According to the department, VA worked with mortgage servicers to help approximately 173,000 veterans avoid foreclosure and remain in their homes during fiscal year 2025.
Additional home retention options available through VA include repayment plans, traditional loan modifications, 30-year and 40-year loan modifications, VA disaster modifications, and disaster extend modifications.
Veterans who are experiencing difficulties with their mortgage and have been unable to reach a resolution with their loan servicer are encouraged to contact VA for assistance. The department operates a dedicated support line at 877-827-3702, option 6.
The VA Home Loan Guaranty Program continues to be one of the federal government’s most widely used benefits for veterans, offering qualified borrowers access to home loans with no down payment requirement and competitive interest rates. Since the program’s inception, VA has helped veterans, service members, and survivors purchase more than 29 million homes nationwide, including more than 500,000 home loans guaranteed during fiscal year 2025.
Officials said the Partial Claim Program is expected to provide an additional layer of protection for veterans facing temporary financial hardship while preserving homeownership opportunities for those who have served the nation.
