Ignite FB Tracking PixelA Basic Guide to Veteran Mortgage Relief Options - Gail McCarthy, MBA

A Basic Guide to Veteran Mortgage Relief Options

by Gail McCarthy, MBA 11/21/2022

If you have a VA loan, the U.S. government has options in place to assist you in case of financial hardship. There are multiple programs available to help you avoid late payments and foreclosure if your mortgage meets eligibility. Here are the major veteran mortgage relief options to know:

Refund Modification

A refund modification affects the principal and interest on your existing VA loan. This option allows the Department of Veteran Affairs to purchase any past-due payment and principal loan balance, given the amount falls within certain limits. Refund modification can result in an overall reduction of both principal and interest by up to 20%.

Partial Claim Option

A partial claim program helps cover you in a scenario where you can make current payments, but have accrued a past-due balance. With a partial claim option, you can resume your regular monthly payments again as soon as you're financially able, while any unpaid late payments are taken over by the VA. You'll owe the amount at the end of the mortgage, but it will not accrue interest while the VA holds it.

Loan Deferment

Loan deferment is one of the simplest mortgage relief options available to veterans. A loan deferment creates an agreed-upon period when you don't have to make regular payments on either principal or interest. It's essentially a "pause" on your mortgage until the end of the deferment period, without any interest accruing during the deferment time.


Loan forbearance is very similar to deferment with one crucial difference. If you receive loan forbearance, you can pause making your mortgage payments for an agreed-upon time period, but interest will continue to build. While forbearance can be an excellent way to mitigate financial hardship in the short term, it can sometimes result in paying higher than the original required amount due to the continuing interest.

All of these options are great ways to avoid foreclosure and late mortgage payments. Remember these programs if you need mortgage relief.

About the Author

Gail McCarthy, MBA


Listing Agent

Buyer's Agent

Relocation Specialist

Commercial R.E.

Multifamily Acquisitions

Lake Home Purchases

As a real estate expert, I work with residential and commercial buyers and sellers to make their transactions go as smoothly as possible. I am deeply committed to my clients.  

Over the years, I have helped many people realize their dreams and have personally invested in single family residences, apartments and other commercial assets. I know real estate. Let me put my experience to work for you!