Published Jul 22, 2026, 10:35 AM EDT
Learn about the VA Loan Modification Program in 2026, who qualifies, how it works, its impact on your credit, and options to avoid foreclosure.
Missing mortgage payments is not only stressful, but the thought of losing your home can be crushing. However, hardships happen in our lives, and maybe you need a fresh start. A loan modification may be just that break you need to get back on your feet and avoid foreclosure on your VA-back home. In this article, we will learn what the VA Loan Modification Program is, who qualifies in 2026, how it impacts your credit, and how the program can put you back on the right track, while keeping your home.
Veterans Affairs Servicing Purchase (VASP) and the VA Partial Claim Program
In May 2025, the VA discontinued the Veterans Affairs Servicing Purchase (VASP) program, which had assisted veteran borrowers facing financial challenges with their VA-backed loans. Under VASP, the VA would purchase the loans, provide more manageable loan terms, and avoid foreclosure. The VA remains committed to helping veterans facing mortgage issues. So, in June 2026, the VA replaced VASP with the VA Partial Claims Program. This option lets the VA work with your servicer to pay them what is needed to bring your loan current on any missed payments. You would then pay the VA back the partial claim when you pay off the loan or sell your home. You will have to complete a three-month trial payment plan before you can get the partial claim. To learn more about the VA Partial Claims Program, read: What Is the VA Partial Claim Program? 2026 Rules Explained.
