On June 15, 2026, the VA launched its new partial claim program, created by the VA Home Loan Program Reform Act that was signed into law on July 30, 2025. The program gives military members and veterans a path to get current on their mortgage without losing the original loan terms. This article explains exactly how the VA partial claim 2026 program works, who qualifies, how it compares to a loan modification, and how to use the program to avoid foreclosure.
The VA partial claim program is a foreclosure-prevention tool that lets the Department of Veterans Affairs (VA) advance funds to cover a homeowner's missed mortgage payments. Instead of adding those missed payments to your loan balance at a new interest rate, the amount owed becomes a separate subordinate lien. Essentially, it acts as a second loan attached to your home with no monthly payments and no interest. You only repay that subordinate lien when you sell the home, refinance the VA loan, or pay off the original mortgage. Until then, you pay nothing extra each month. For military homeowners, this new program fills a critical gap. The Veterans Affairs Servicing Purchase (VASP) program (the previous foreclosure safety net) ended on May 1, 2025. Between VASP's closure and the new law taking effect, homeowners who fell behind on their mortgage had limited options to avoid foreclosure. The VA partial claim 2026 program is authorized for five years, through July 30, 2030, unless Congress extends it. VA loan issuers have until November 28, 2026 to fully implement it in their systems, but submissions open on June 15, 2026.
