This VA program could save veterans thousands on a home: Are you missing out? – MARCA
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A new foreclosure program aims to help struggling veterans stay in their homes
Many veteransspend years trying to build financial security after military service, yet one of the most valuable housing benefits available to them is still being missed by thousands of eligible borrowers.
The VA home loan program can make buying a home significantly less expensive than many conventional mortgage options. It’s designed for eligible veterans, service members and certain surviving spouses, with the Department of Veterans Affairs guaranteeing part of the loan so lenders can offer more favorable terms.
A Veterans United Home Loans analysis found that more than 58,000 VA loans went unused in 2024, representing nearly $28 billion in untapped loan volume. That gap suggests many veterans either don’t know they qualify or may be avoiding the program because of outdated assumptions about how it works.
The benefit can be especially powerful in a difficult housing market, where high home prices and interest rates have made upfront costs a major barrier.
The VA says its home loan benefit includes several major advantages, including no VA-required down payment, competitively low interest rates, limited closing costs and no need for private mortgage insurance.
That combination can save buyers thousands upfront and reduce monthly costs. PMI alone can add hundreds of dollars to a mortgage payment, depending on the size of the loan and the borrower’s finances.
Unlike many conventional loans, the VA benefit can also be used more than once. That makes it valuable not only for first-time buyers, but also for veterans who may be moving, refinancing or rebuilding after financial setbacks.
Eligibility depends on service history, duty status and other factors. Borrowers usually begin by obtaining a Certificate of Eligibility, which lenders use to confirm access to the benefit.
The VA has also launched a new Partial Claim Program aimed at helping veterans who are already struggling with VA-backed mortgages.
Under the program, mortgage servicers identify eligible borrowers in default and place them on a three-month trial payment plan. If the borrower completes the trial successfully, the servicer pays the overdue amount to bring the mortgage current, and the VA reimburses the servicer.
The amount is then repaid later when the loan is paid off, refinanced or the property is sold.
“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,” VA Secretary Doug Collins said.
The program isn’t a full reset for every borrower. It doesn’t erase the missed balance, and veterans facing long-term hardship may still need other options, including loan modifications or repayment plans.
But it gives some borrowers a way to catch up without immediately increasing their monthly mortgage payments.
Veterans who haven’t checked their VA home loan eligibility may be leaving money on the table. Those already behind on payments should contact their servicer or the VA before foreclosure becomes unavoidable.
© Unidad Editorial Información Deportiva, S.L.U. All rights reserved.
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This article was autogenerated from a news feed from CDO TIMES selected high quality news and research sources. There was no editorial review conducted beyond that by CDO TIMES staff. Need help with any of the topics in our articles? Schedule your free CDO TIMES Tech Navigator call today to stay ahead of the curve and gain insider advantages to propel your business!
A new foreclosure program aims to help struggling veterans stay in their homes
Many veteransspend years trying to build financial security after military service, yet one of the most valuable housing benefits available to them is still being missed by thousands of eligible borrowers.
The VA home loan program can make buying a home significantly less expensive than many conventional mortgage options. It’s designed for eligible veterans, service members and certain surviving spouses, with the Department of Veterans Affairs guaranteeing part of the loan so lenders can offer more favorable terms.
A Veterans United Home Loans analysis found that more than 58,000 VA loans went unused in 2024, representing nearly $28 billion in untapped loan volume. That gap suggests many veterans either don’t know they qualify or may be avoiding the program because of outdated assumptions about how it works.
The benefit can be especially powerful in a difficult housing market, where high home prices and interest rates have made upfront costs a major barrier.
The VA says its home loan benefit includes several major advantages, including no VA-required down payment, competitively low interest rates, limited closing costs and no need for private mortgage insurance.
That combination can save buyers thousands upfront and reduce monthly costs. PMI alone can add hundreds of dollars to a mortgage payment, depending on the size of the loan and the borrower’s finances.
Unlike many conventional loans, the VA benefit can also be used more than once. That makes it valuable not only for first-time buyers, but also for veterans who may be moving, refinancing or rebuilding after financial setbacks.
Eligibility depends on service history, duty status and other factors. Borrowers usually begin by obtaining a Certificate of Eligibility, which lenders use to confirm access to the benefit.
The VA has also launched a new Partial Claim Program aimed at helping veterans who are already struggling with VA-backed mortgages.
Under the program, mortgage servicers identify eligible borrowers in default and place them on a three-month trial payment plan. If the borrower completes the trial successfully, the servicer pays the overdue amount to bring the mortgage current, and the VA reimburses the servicer.
The amount is then repaid later when the loan is paid off, refinanced or the property is sold.
“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,” VA Secretary Doug Collins said.
The program isn’t a full reset for every borrower. It doesn’t erase the missed balance, and veterans facing long-term hardship may still need other options, including loan modifications or repayment plans.
But it gives some borrowers a way to catch up without immediately increasing their monthly mortgage payments.
Veterans who haven’t checked their VA home loan eligibility may be leaving money on the table. Those already behind on payments should contact their servicer or the VA before foreclosure becomes unavoidable.
© Unidad Editorial Información Deportiva, S.L.U. All rights reserved.
Follow us
source
This article was autogenerated from a news feed from CDO TIMES selected high quality news and research sources. There was no editorial review conducted beyond that by CDO TIMES staff. Need help with any of the topics in our articles? Schedule your free CDO TIMES Tech Navigator call today to stay ahead of the curve and gain insider advantages to propel your business!
