- VA loan forbearance lets homeowners temporarily pause payments during hardship, which can help avoid foreclosure and support staying in the home.
- Missed payments aren’t forgiven and must be repaid later through options like repayment plans or loan modification, with interest often continuing to accrue.
- You can refinance or use a VA loan after forbearance, but eligibility depends on your repayment path and meeting on-time payment requirements.
Forbearance is a financial tool that allows homeowners to temporarily pause their mortgage payments during times of hardship. For Veterans and military families, VA loan forbearance can serve as a crucial safety net when unexpected challenges arise.
Whether it’s a sudden job loss, reduced income, medical expenses or deployment-related financial strain, forbearance helps you stay in your home while regaining financial stability.
It’s not loan forgiveness, but it is a structured, temporary pause that can help prevent foreclosure and keep you in your home.
What is VA Loan Forbearance?
VA loan forbearance is a program that allows homeowners with a VA-backed mortgage to temporarily stop their monthly mortgage payments. During this period, you won’t face foreclosure or penalties as long as you work with your loan servicer under an approved forbearance plan.
Forbearance is designed to address short-term financial hardship. Common scenarios where a VA home loan forbearance might be needed include:
- Job loss or reduced income: Losing work or facing a sudden reduction in hours can strain your ability to make mortgage payments.
- Illness or medical expenses: Unexpected medical costs or prolonged illness can divert funds from your mortgage.
- Natural disasters or emergencies: Storms, floods or other emergencies can cause sudden financial strain.
- Deployment-related strain: A change in income due to deployment may also make forbearance necessary. However, if vacating the property, Veterans should understand that their options for resolving the delinquency post-forbearance will likely be extremely limited.
It's important to note that while your monthly mortgage payments are paused or reduced, interest will still accrue on the loan.
Homeowners are also still responsible for property taxes and homeowners insurance during the forbearance period. If these are escrowed, your servicer may continue advancing those payments on your behalf, but this can create an escrow shortage, which may result in higher monthly payments once forbearance ends.
Consider all your options before deciding whether loan forbearance is the best foreclosure-avoidance option for you.
VA Loan Forbearance Repayment Options
When the forbearance period ends, the missed or reduced payments don’t disappear, and they must be repaid. However, repayment doesn’t mean you’ll owe everything all at once. There are different VA loan forbearance repayment options, including:
- Repayment plan: Your missed payments are spread out over a specified repayment period that’s typically six months, with the option to extend to 12-24 months. During this time, you'll make your regular mortgage payment plus an additional amount each month until the delinquency is resolved.
- Loan modification: With a VA loan modification, your loan terms will be permanently adjusted, including a reset of the interest rate to current market rates. Depending on market conditions, this could result in a higher rate, so a modified loan doesn't necessarily mean a more affordable payment once the forbearance period ends.
The right option depends on your financial situation and what you work out with your servicer.
One thing to keep in mind is that the Veteran Affairs Servicing Purchase (VASP) program ended and is no longer accepting submissions. This program granted qualifying VA borrowers a reduced interest rate to help them stay in their homes.
The VA Home Loan Reform Act, signed into law in July 2025, established a partial claim program to replace VASP. The program is just now being rolled out, so availability through servicers is expected to expand later in 2026.
Who is Eligible for VA Loan Forbearance?
Eligibility for VA mortgage forbearance depends on the borrower's circumstances. Demonstrating a verifiable financial hardship, such as one of the following, is generally a starting point, though it doesn't guarantee eligibility for every forbearance option:
- Job loss or reduction in hours/income
- Medical or family emergencies
- Natural disasters
- Deployment or relocation-related financial challenges
Some options, such as Special Forbearance, require the loan to be at least 61 days delinquent and may involve additional eligibility criteria.
The first step in the loan forbearance process is to contact your loan servicer. They’ll review your situation and help create a forbearance agreement. This agreement will outline:
- How long the forbearance will last
- Whether extensions are possible
- Payment terms
- Credit reporting
- Repayment plan
Pros and Cons of VA Loan Forbearance
VA loan forbearance can be a helpful option during financial hardship, but it’s important to weigh the advantages and drawbacks before moving forward.
Pros of Mortgage Forbearance
- Temporary relief from payments: Homeowners can pause or reduce monthly VA mortgage payments for a set period, giving breathing room during financial hardship.
- Helps prevent foreclosure: By suspending payments, borrowers can stay in their homes while working to stabilize their finances.
- No late fees: Lenders typically waive late fees during forbearance, preventing additional penalties from piling up.
- Flexible repayment options: Once the forbearance period ends, homeowners often have repayment options — such as a lump sum or a repayment plan.
Cons of Mortgage Forbearance
- Not loan forgiveness: Missed payments don’t disappear; they must still be repaid at the end of the forbearance period.
- Accrued interest: Interest continues to accrue during the pause, increasing the loan's total cost.
- Extended loan term: Depending on the chosen repayment option, the mortgage term may be lengthened.
- Potential for higher payments later: Homeowners need to be prepared for significantly larger monthly payments if repayment is structured into a short-term plan.
Getting a VA Loan After Forbearance Guidelines
Your ability to get a new VA loan after forbearance depends on your repayment method and payment history. These rules are often referred to as VA forbearance seasoning requirements.
Here are the current general guidelines at Veterans United:
- Loans that were never delinquent (paid within the month due): If payments were always made within the month due, no seasoning is required. The new loan may proceed immediately, as long as the current loan is removed from forbearance before closing.
- Reinstatement loans: If the borrower caught up through a lump-sum reinstatement, no seasoning is required once the loan is out of forbearance.
- Loans in partial claim status or repayment plan: Borrowers become eligible after making three consecutive on-time payments after exiting forbearance.
- Modified loans: If the loan was modified, the new loan becomes eligible once the borrower has completed three consecutive months of on-time payments under the trial payment plan.
Please note that lenders may have their own requirements, and these guidelines are subject to change.
Can You Refinance a VA Loan After Forbearance?
Yes, you can refinance a VA loan after forbearance to potentially lower your interest rate or improve affordability, but your eligibility and timing will depend on your repayment method, payment history and debt-to-income ratio.
The requirements differ depending on your loan situation after forbearance. Here’s what you can expect:
For VA Cash-Out Refinances, if your loan was:
- Never delinquent (paid within the month due): No seasoning required, provided the mortgage is out of forbearance before closing.
- Reinstated: No seasoning required if the mortgage is removed from forbearance before closing.
- Partial claim status: The partial claim must be paid in full as part of the refinance.
- Put into a repayment plan: Eligible after three consecutive timely payments following forbearance.
- Modified: Eligible after six consecutive payments and at least 210 days from the first payment due date after modification completion.
For VA Interest Rate Reduction Refinance Loans (IRRRLs), if your loan was:
- Never delinquent (paid within the month due): No seasoning required if payments were made within the month due and borrowers provide a letter explaining the reason for forbearance with confirmation that the issue has been resolved.
- Reinstated: No seasoning required if the loan is not more than 30 days past due and has been removed from forbearance before closing.
- Partial claim status: Subordinate liens from partial claims cannot be paid off with an IRRRL. They must either be paid at closing or addressed through a cash-out refinance.
- Put into a repayment plan: Eligible after three consecutive on-time payments following forbearance.
- Modified: Eligible after six consecutive on-time payments and 210 days from the first due date after modification completion.
One important distinction: While you can refinance a VA loan after forbearance, you cannot refinance a VA loan while it’s actively in forbearance. You must exit forbearance first and then meet the applicable seasoning requirements before refinancing.
Your VA Loan Benefits are Here to Help
Forbearance is not the end of the road; it’s a bridge to help you through difficult times. VA loan forbearance gives Veterans and military families space to recover financially while protecting their homes from foreclosure.
The key is communication: Stay in touch with your servicer, understand your VA loan forbearance repayment options and work with your SPOC to find the best option for your situation. When you’re ready, know that refinancing or purchasing again is possible once you meet the VA forbearance seasoning requirements.
If you're currently on active duty, it's also worth reviewing your rights under the Servicemembers Civil Relief Act (SCRA), which can offer additional protections, such as a reduced interest rate and foreclosure safeguards on mortgages taken out before entering active duty.
If you’re considering forbearance, check in with your loan servicer. If you have questions about refinancing after forbearance, connect with a Veterans United VA loan expert at 855-870-8845 or get started online. Your hard-earned VA benefits are here to help you maintain stable, affordable homeownership – no matter what life throws your way.
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Current Version
Jul 8, 2026
Written ByMitch Casteel
Reviewed ByTara Dometrorch
Content expanded and edited following additional input and review from Servicing team.
Veterans United often cites authoritative third-party sources to provide context, verify claims, and ensure accuracy in our content. Our commitment to delivering clear, factual, and unbiased information guides every piece we publish. Learn more about our editorial standards and how we work to serve Veterans and military families with trust and transparency.
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