WAUSAU, Wisconsin (WSAW) – Thousands of homes owned by veterans and their families are at risk of foreclosure due to the COVID pandemic. An expanded government effort has just been announced to help homeowners preserve their homes in the face of economic hardship.
VA’s new major 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 return modification option is only available until September 30, 2021.
“The COVID-19 Return Modification provides veterans with a durable, affordable solution to preserve their homes and prevent foreclosures,” said VA Secretary Denis McDonough. “As our country rebuilds and rebuilds from the economic devastation caused by the pandemic, Virginia and the Biden-Harris administration continue to make every effort to help veterans maintain a roof over their heads when they get back on their feet.”
In some cases, veterans can get a 20% discount, in others even more.
As with the COVID-19 VA partial claim option, the veteran’s deferred Covid-19 refund modification debt will be set as junior bond. The junior collateral does not charge interest, does not require monthly payments and is payable only after the sale of the property, repayment of the guaranteed loan or refinancing of the guaranteed loan.
Under the COVID-19 reimbursement modification, VA buys late veteran payments and outstanding principal amounts depending on what assistance is needed, subject to certain restrictions. Serving loans also modify the loan. These efforts help ensure that the veteran can afford future mortgage payments.
VA Home Loan Program:
- Supports at least 25% of most loans, eliminating the need for a down payment and PMI.
- Can be used during active service or after six years of service in the National Guard or Reserve.
- Can be used more than once.
- Offers direct credit financing for use in over 100 tribal lands and territories in the United States.
To learn more about this new option, visit VA Home Loan Program or call 877-827-3702.
The new VA partial requirement program is a temporary program that will allow some borrowers to renew their mortgages as they resume regular mortgage payments and will run until October 28, 2022. Here are the requirements:
- The loan must be a VA guaranteed loan.
- The VA loan must be current or less than 30 days past due on March 1, 2020 or issued on / March 1, 2020 after that date.
- The borrower had to receive a COVID-19 waiver and miss at least one payment in accordance with the terms of the original mortgage note.
- The borrower is currently required to reside in a property that provides a guaranteed loan.
- The borrower has recovered from the hardships and can resume timely full monthly payments in accordance with the terms of the original mortgage note.
- The borrower agrees to pay a partial amount of VA’s claim and authorize VA to create a second mortgage on the property.
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