va home loan deferment extended

VA Loans

VA Home Loan Deferment Extended Until July 2023

While many VA borrowers have been able to catch up on their mortgage payments, others are still struggling. The good news is, the VA has decided to extend the deadline for deferment. VA home loan borrowers now have until July 1, 2023, to obtain mortgage repayment relief. Below, we’ve discussed the matter in detail. 


Deadline Extended for VA Loan Repayment Relief

The pandemic affected millions of homeowners in the U.S. While the financial impacts were only mild for some, others were affected more significantly and had no choice but to enter into mortgage forbearance and arrange to have payments reduced or put on hold. Among the countless individuals affected were military borrowers with VA home loans. 

The goal of the VA loan program has always been to make homeownership a possibility for Veterans and members of the armed forces. Therefore, it only makes sense that the VA will continue to try to help borrowers retain their homes when faced with the possibility of foreclosure.

When the pandemic hit, the VA modified its handbook, making it easier for borrowers to qualify for home retention options. Borrowers had until April 1, 2022, to pursue these options and make arrangements with their loan servicer. Now, that deadline has been extended until July 1, 2023. The VA has not made any comments on the matter of extension, except that they have found it necessary to take steps to assist Veteran borrowers. 


What Retention Options Are Available to VA Borrowers?

There are several home retention options outlined in the VA Servicer Handbook. The VA encourages servicers to consider loss mitigation options that allow borrowers to retain their homes. In the handbook, the VA states that these options should be pursued first if possible before the servicer considers foreclosure.

If you’re considering applying for deferment for your VA home loan, here are some of the options that may be available to you:

    • Repayment plan: an agreement between you and your provider that allows you to catch up on payments
  • Special forbearance: special circumstances allow you to put your payments on hold or make reduced payments for a limited period of time
  • Loan modification: an adjustment to the original terms of your loan 


If none of these retention options are possible, the VA encourages servicers to pursue alternatives to foreclosure. Examples include a compromise sale or a deed in lieu of foreclosure. 


Have Questions About Your VA Home Loan?

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