Trouble Paying Your VA Loan: Partial Claim, Loss Mitigation and VA Help

Act fast

If you have missed a payment or know you are about to, call your loan servicer right away. The earlier you ask for help, the more options you have. Ignoring letters only makes things harder.

What changed in 2025 and 2026

In 2025, VA ended its old VA Servicing Purchase (VASP) program. Then, on July 30, 2025, the VA Home Loan Program Reform Act became law. It gave VA permanent authority to run a partial claim program, something FHA borrowers have had for years.

VA's Partial Claim program opened for submissions on June 15, 2026. Servicers have until November 28, 2026 to have it fully in place. VA has since issued circulars on how partial claims are collected and repaid.

How a VA partial claim works

1. Your servicer reviews your situation and finds you qualify.
2. You make three on-time payments under a trial plan.
3. VA pays the servicer the missed amounts and brings your loan current.
4. That amount becomes a separate, subordinate lien owed to VA.
5. It has no interest and no monthly payment.
6. You repay it when you sell, refinance or pay off the loan.

Under the law, a partial claim is generally capped at 25% of your unpaid principal balance, or 30% for some borrowers who missed payments between March 1, 2020 and May 1, 2025. It is usually limited to one per loan, with an exception for presidentially declared disasters. Your servicer will tell you what you qualify for.

Other loss mitigation options

VA requires servicers to look at options in order. Depending on your situation, these may include:

• Repayment plan: pay your normal payment plus extra each month until you are caught up.
• Special forbearance: a short break or reduced payment, with time to repay later.
• Traditional loan modification: missed payments and some costs are added to your balance. Your payment may change.
• 30-year modification: your loan is reset to 30 years if that lowers your payment.
• 40-year modification: stretches the term to 40 years for a lower payment.
• Partial claim: as described above.

If keeping the home is not possible

• Extra time for a private sale so you can sell on your own terms
• Short sale, where the servicer accepts less than you owe
• Deed in lieu of foreclosure, where you sign the home over

These can reduce your future VA entitlement until VA's loss is repaid.

Free help from VA

VA loan technicians can talk with your servicer for you and help you understand options, at no cost. If your VA loan is 61 days past due, VA automatically assigns a technician. Veterans and surviving spouses can get counseling even if their loan is not VA-backed. You can reach VA through the phone number and online support portal on VA's "trouble making payments" page.

Step by step: what to do now

1. Call your servicer. Ask for "loss mitigation" and whether you qualify for a VA partial claim.
2. Gather documents: pay stubs, bank statements, a budget and a hardship letter.
3. Submit the full package quickly and keep copies.
4. Contact a VA loan technician if you feel stuck or are not getting answers.
5. Make every trial payment on time.
6. Read the final paperwork and ask about any terms you do not understand.

Avoid scams

Be wary of anyone who charges an upfront fee to save your home, tells you to stop talking to your servicer, or asks you to sign over your deed. Real help from your servicer, VA and HUD-approved counselors is free.

Bottom line

You have real options, especially with the new Partial Claim program. Call your servicer today, and lean on VA's free help.