WASHINGTON — The Department of Veterans Affairs is offering a new COVID-19 Refund Modification option to assist Veterans who require a significant reduction in their monthly mortgage payments because of the COVID-19 pandemic.
In some cases, Veterans can receive a 20% payment reduction — in others, the reduction can be even larger.
This new option is part of the of Biden-Harris administration’s expanded, government-wide effort to help homeowners retain their homes as they weather the economic challenges resulting from the ongoing pandemic.
Under the COVID-19 Refund Modification, VA can purchase a Veteran’s past due payments and amounts of unpaid principal, depending on how much assistance is necessary, subject to certain limits. Loan servicers also modify the loan. These efforts help ensure that the Veteran can afford future mortgage payments.
“The COVID-19 Refund Modification provides Veterans a lasting and affordable solution to keeping their homes and avoiding foreclosure,” said VA Secretary Denis McDonough. “As our country recovers and rebuilds from the economic devastation brought on by the pandemic, VA and the Biden-Harris administration continue to make every effort to help Veterans keep a roof over their head as they get back on their feet.”
Like with VA’s COVID-19 partial claim option, the Veteran’s deferred indebtedness from a COVID-19 Refund Modification will be established as a junior lien. The junior lien will not accrue interest; will not require monthly payments; and will only become due when the property is sold, the guaranteed loan is paid off, or the guaranteed loan is refinanced.
Veterans can get a COVID-related forbearance through Sept. 30, 2021.
To learn more about this new option visit VA’s Home Loan Program or call 877-827-3702.
###
Reporters and media outlets with questions or comments should contact the Office of Media Relations at vapublicaffairs@va.gov
Veterans with questions about their health care and benefits (including GI Bill). Questions, updates and documents can be submitted online.
Veterans can also use our chatbot to get information about VA benefits and services. The chatbot won’t connect you with a person, but it can show you where to go on VA.gov to find answers to some common questions.
Subscribe today to receive these news releases in your inbox.
More from the Press Room
News Releases
The Department of Veterans Affairs announced its 2024 goals in support of its efforts to prevent and end Veteran homelessness.
News Releases
The Department of Veterans Affairs selected the top performing teams to move forward in VA’s Artificial Intelligence Tech Sprint competition targeting the development of AI solutions to address burnout among health care workers.
News Releases
The Biden-Harris Administration released the President’s Budget for fiscal year 2025. This budget proposes critical resources to help VA continue providing more care and more benefits to more Veterans than ever before.