RICHMOND, Virginia (WRIC) – Thousands of veterans and their families are at risk of losing their homes due to the COVID-19 pandemic. A new government-wide effort could help them keep a roof over their heads.
The U.S. Department of Veterans Affairs is offering two mortgage relief programs to help those affected by the pandemic stay inside their homes.
Jeffrey London, Executive Director of the Veterans Affairs Home Loan Program, said, “VA wanted to take additional measures to ensure that no veteran slipped through the cracks.”
Under the new one COVID-19 reimbursement change, Veterans may see a significant reduction in their monthly mortgage payments.
London said: “VA will actually work with the mortgage servicer to seek a 20% reduction in their mortgage payment.”
This program is only available until September 30, 2021.
Another possibility is the VA partial payment program. In this case, the VA pays your overdue mortgage payments and creates a second mortgage on the property without interest.
“It takes the financial burden off them when they are ready to make their mortgage payments again,” said London.
With either program, you don’t have to repay the VA until you either refinance or sell the loan. This program is valid until October 28, 2022.
Applicants must meet the following admission requirements:
- Must currently be living in the property
- Be less than 30 days overdue with a mortgage payment by March 2020.
- Conclusion of a deferral agreement with the lender
- Must have been in financial distress due to COVID
To apply, you can contact your lender or call 877-827-3702. You can find out more at The VA section on their website.