VA Partial Claim Program: What Veterans Need to Know

Veterans facing difficulties with their VA‑guaranteed mortgage now have a new potential lifeline — the VA Partial Claim Program, authorized under the VA Home Loan Program Reform Act. While this program represents a major step forward in protecting veteran homeowners, it’s important to understand where it stands today and how veterans can prepare.

What the Law Says

Signed into law on July 30, 2025, the VA Home Loan Program Reform Act allows the Department of Veterans Affairs to help veterans who are in default, or at risk of default, on their VA‑guaranteed home loans.

Through the Partial Claim Program, the VA can pay a portion of a veteran’s delinquent loan to the lender — up to 25% of the unpaid principal balance — and take a subordinate lien on the property. This is designed to give veterans a clear path to avoid foreclosure while keeping their homes.

The law also allows the VA to implement the program through administrative guidance for existing delinquent loans and full regulations for new defaults. The authority for the program is currently set for five years from enactment.

Where the Program Stands Today

Although the law gives the VA the power to help veterans through this new tool, the program is not yet operational:

• The VA has not released the full regulations or guidance needed for servicers to implement the program.

• Veterans cannot yet apply directly for partial claim assistance.

• Officials have not provided a public timeline for when the program will begin accepting applications.

This means that while the Partial Claim Program is coming, veterans who are struggling now still need to use existing support programs to protect their homes.

What Veterans Should Do Now

Even before the program officially launches, there are steps veterans can take to safeguard their homes:

1. Contact Your Loan Servicer Early Reach out to your VA loan servicer if you are behind on payments or anticipate difficulty. Early communication can make a significant difference in avoiding serious delinquency or foreclosure.

2. Seek Housing Counseling VA‑approved housing counselors can help veterans understand their options and navigate existing loss mitigation tools, such as loan modifications or forbearance.

3. Explore Existing Programs Programs like the Homeowner Assistance Fund (HAF) can provide financial relief for eligible veterans to bring their loans current and prevent foreclosure.

4. Stay Informed Monitor updates from the VA and your loan servicer. Once the Partial Claim Program goes live, having all the necessary information will allow you to act quickly.

How KOVH Can Help

At the Keep Our Vets Housed (KOVH) Foundation, our goal is to ensure that veteran families know about every available safety net. While the Partial Claim Program is not yet active, our Ambassador Program and outreach efforts can:

• Provide education about the upcoming program and how it will work.

• Help veterans navigate existing loss mitigation options and housing assistance programs.

• Serve as a trusted guide during times of financial stress, making sure no veteran faces foreclosure alone.

Bottom Line

The VA Partial Claim Program represents an important new tool for protecting veteran homeowners, but it isn’t ready for use just yet. Veterans should continue to engage proactively with their servicers, seek counseling, and use existing assistance programs while staying informed about the rollout.

KOVH will continue monitoring the program and share updates the moment veterans can access it. In the meantime, early action is key: don’t wait until a foreclosure notice arrives to get help.