Quick Answer: What Is the VA Partial Claim Program?
If you're behind on your VA-backed mortgage, the VA Partial Claim Program lets the Department of Veterans Affairs advance up to 25% of your unpaid principal balance (or 30% if COVID-era arrears are involved) to bring your loan current. The advance becomes a 0% interest subordinate lien—no monthly payment, no interest, ever. You pay it back only when you sell the house, refinance, or pay off the loan. You must first complete a 3-month trial payment plan showing you can afford your normal payment. The program opened June 15, 2026 and runs until approximately July 30, 2030.
Estimate Your VA Partial Claim Amount
Use the calculator below to estimate how much the VA could advance for your situation. Enter your unpaid principal balance, total arrearage, and whether any arrears are from the COVID-era window.
→ Use the VA Partial Claim Estimator
How the VA Partial Claim Program Works
What Changed and Why
Congress authorized the VA Partial Claim Program through the VA Home Loan Program Reform Act, signed into law on July 30, 2025. The program officially opened for submissions on June 15, 2026. It replaces the earlier VASP (VA Servicing Purchase) program, which ended on May 1, 2025.
Under VASP, the VA purchased the delinquent loan from the servicer and placed the veteran into a new, modified payment plan. The new Partial Claim Program works differently: instead of buying the loan, the VA advances just enough money to cover the arrears, leaving your original loan terms intact. This is simpler, faster, and carries zero cost to the veteran in interest or fees.
The Arrearage Cure
When you're approved for a VA Partial Claim:
- The VA sends funds directly to your loan servicer—enough to pay off every missed payment, late fee, and escrow advance in one lump sum.
- Your loan becomes current—you're no longer delinquent. Your credit report reflects the cured status.
- The VA records a subordinate lien—this is a junior lien on your property at 0% interest. It does not accrue interest, and you make no monthly payments toward it.
- You resume normal payments—your original monthly principal, interest, taxes, and insurance payment stays exactly the same.
The lien sits on the property until one of three things happens:
- You sell the home: the lien is repaid from sale proceeds at closing.
- You refinance the mortgage: the lien becomes due as part of the payoff.
- You pay off the loan: if you simply pay the mortgage down to zero, the lien is released.
The Trial Payment Plan Requirement
Before the VA will fund the partial claim, you must demonstrate that you can sustainably afford your home. This is done through a 3-month trial payment plan:
- You make your normal monthly payment (the full principal + interest + escrow amount) on time for three consecutive months.
- If you miss a payment or pay late, the trial period resets.
- Once completed, your servicer submits the partial claim to the VA for funding.
This requirement exists to prevent a repeat delinquency. The program is designed for veterans who had a temporary hardship but can afford their home going forward. If your financial situation has permanently changed, a loan modification or other loss-mitigation option may be more appropriate.
Cap Structure: 25% vs 30%
| Factor | Standard Cap | COVID-Era Cap |
|---|---|---|
| Cap Rate | 25% of unpaid principal balance | 30% of unpaid principal balance |
| When It Applies | Arrears from normal hardship (job loss, medical, divorce) | Any portion of arrears fell in Mar 1, 2020 – May 1, 2025 |
| Example | $300,000 UPB × 25% = $75,000 max | $300,000 UPB × 30% = $90,000 max |
| Claim Amount | Lesser of cap or actual arrears | Lesser of cap or actual arrears |
Important: The COVID-era cap does not require all arrears to be from that window. If even one missed payment was during the March 2020 – May 2025 period, the higher 30% cap applies to the entire claim.
Maximum claim on a $300,000 balance
Real-World Examples
Example 1: Standard Hardship
Marcus, a Navy veteran in Texas, lost his job in January 2026 and fell 4 months behind on his $280,000 VA mortgage. His total arrears are $14,000 (missed payments plus late fees).
- UPB: $280,000
- Arrearage: $14,000
- Cap: 25% of $280,000 = $70,000
- Claim Amount: $14,000 (lesser of arrears and cap)
- Result: VA advances $14,000 to the servicer. Marcus completes 3 trial payments. A $14,000 0% lien is recorded. He resumes normal payments.
Example 2: COVID-Era Arrears (Higher Cap)
Jennifer, an Air Force veteran in Florida, fell behind during the pandemic in 2022 and again after a medical emergency in 2025. Her $320,000 mortgage has $28,000 in total arrears, some of which date to the COVID window.
- UPB: $320,000
- Arrearage: $28,000
- Cap: 30% (COVID-era applies) of $320,000 = $96,000
- Claim Amount: $28,000 (fully covered within cap)
- Result: VA advances $28,000. Trial plan required. $28,000 lien recorded at 0%.
Example 3: Arrears Exceed the Cap
Robert, a Marine Corps veteran, has a $200,000 UPB and fell $65,000 behind after a prolonged illness.
- UPB: $200,000
- Arrearage: $65,000
- Cap: 25% of $200,000 = $50,000
- Claim Amount: $50,000 (capped)
- Remaining: $15,000 must be resolved through a separate repayment plan or forbearance
Robert's $65,000 of arrears vs the 25% cap
Example 4: Missed Trial Payment Plan
Diana, an Army veteran in Washington, fell 6 months behind on her $250,000 VA mortgage after a layoff. Her total arrears are $18,000.
- UPB: $250,000
- Arrearage: $18,000
- Cap: 25% of $250,000 = $62,500
- Claim Amount: $18,000 (fully covered)
Claim amounts across the four worked examples
Diana completed 2 of 3 trial payments on time but missed the third by 10 days. Her trial period reset—she must now make 3 more consecutive on-time payments before her servicer can submit the claim. A single missed or late payment restarts the entire trial period, making consistent on-time payment the single most critical requirement of the program.
VA Partial Claim vs. FHA Partial Claim
This is the most common source of confusion. The VA Partial Claim and the FHA Partial Claim are different programs under different agencies with different rules:
| Feature | VA Partial Claim | FHA Partial Claim |
|---|---|---|
| Loan Type | VA-guaranteed loans only | FHA-insured loans only |
| Interest | 0%—no interest ever | Typically 0% but different repayment triggers |
| Monthly Payment | None—silent lien | None—silent lien |
| Cap | 25% of UPB (30% COVID-era) | Varies by HUD guidelines |
| Trial Plan | 3 months required | Varies by servicer |
| Repayment Trigger | Sale, refi, or payoff | Sale, refi, or maturity |
If you have a VA loan, use the VA rules. If you have an FHA loan, consult HUD or your servicer for FHA-specific options.
Key Dates to Know
| Date | Event |
|---|---|
| July 30, 2025 | VA Home Loan Program Reform Act signed into law |
| May 1, 2025 | VASP program ended |
| June 15, 2026 | VA Partial Claim Program opened for submissions |
| November 28, 2026 | Servicer implementation deadline |
| ~July 30, 2030 | Program sunset—no new claims after this date |
What to Do Next—Your Action Plan
Step 1: Check your numbers. Find your most recent VA mortgage statement. Note your unpaid principal balance and the total amount you're behind (arrears). Note whether any missed payments fall within the COVID-era window (March 1, 2020 – May 1, 2025).
Step 2: Run the calculator. Use the VA Partial Claim Estimator to see your estimated claim amount under both the 25% and 30% cap scenarios.
Step 3: Call your servicer. Ask specifically about the VA Partial Claim Program. Confirm they have implemented it (deadline: November 28, 2026) and ask to start the 3-month trial payment plan.
Step 4: Complete the trial plan. Make three consecutive on-time payments at your normal monthly amount. If you miss one, the trial period resets.
Step 5: The VA funds the claim. Once you complete the trial plan, your servicer submits the claim. The VA sends funds directly to cure your arrears. Your loan is current, and a 0% silent lien is recorded. Resume normal payments.
Can't afford your normal payment? The Partial Claim is designed for temporary hardship. If your financial situation has permanently changed, ask your servicer about a loan modification instead.
This guide is for informational purposes only and does not constitute financial or legal advice. Contact your VA loan servicer or a VA regional loan center for personalized eligibility determinations. The VA Partial Claim Program rules are subject to change based on further regulatory guidance.
