WAUSAU, Wis. (WSAW) – Thousands of homes owned by veterans and their families are at risk of foreclosure due to the COVID pandemic. Just announced is an expanded government effort to help homeowners keep their homes while they meet economic challenges.
A major new VA home loan program will help save the homes of an estimated 2.3 million veterans affected by COVID-19. This just announced new COVID-19 reimbursement change option is only available through September 30, 2021.
“The COVID-19 reimbursement change provides veterans with a permanent 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 caused by the pandemic, VA and the Biden-Harris government continue to make every effort to help veterans stay a roof over their heads when they get back on their feet . “
In some cases veterans can receive a 20% payment discount – in others the discount can be even higher.
As with the VA’s COVID-19 partial claim option, the veteran’s deferred debt from a Covid-19 reimbursement change will be set up as a subordinate lien. The subordinate lien does not bear interest, does not require monthly payments and is only due when the property is sold, the guaranteed loan is repaid or the guaranteed loan is refinanced.
As part of the COVID-19 reimbursement change, the VA will purchase a Veteran’s overdue payments and unpaid principal based on how much assistance is required, subject to certain limits. Credit service providers are also changing the loan. These efforts help ensure that the veteran can afford future mortgage payments.
The VA home loan program:
- Supports at least 25% of most loans, eliminating the need for a down payment and PMI.
- Can be used while absent from active duty or after six years of National Guard or Reserve duty.
- Can be used more than once.
- Provides direct loan financing for use in over 100 tribal and US territories.
To learn more about this new option, visit The VA home loan program or call 877-827-3702.
The new VA Partial Claim Program is a temporary program that will update certain borrowers as they resume regular mortgage payments and will remain in effect until October 28, 2022. Here are the requirements:
- The loan must be a VA guaranteed loan
- The VA loan must have been short term or less than 30 days past due on March 1, 2020, or issued on / after March 1, 2020
- The borrower must have received a COVID-19 omission and must have missed at least one payment as per the terms of the original mortgage letter
- The borrower must currently live in the property securing the guaranteed loan
- The borrower has recovered from the hardship and is able to resume timely, full monthly payments under the terms of the original mortgage letter
- The borrower undertakes to repay the partial claim amount to VA and allow VA to establish a second mortgage lien on the property
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