- VA loan forbearance lets homeowners temporarily pause or reduce payments during hardship to avoid foreclosure and stay in their home.
- Missed payments aren’t forgiven and must be repaid later through options like repayment plans, deferral 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 or reduce 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.
Unlike foreclosure, which can have long-lasting financial consequences, forbearance is designed to provide breathing room. 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 or reduce their monthly mortgage payments. During this period, you generally won’t face foreclosure or penalties as long as you work with your lender or 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 or relocation may also make forbearance necessary.
It’s important to note that while your monthly mortgage payments are paused or reduced, interest may still accrue on the loan. Additionally, homeowners are still responsible for paying property taxes and homeowners insurance during the VA mortgage forbearance period.
Consider all your options before deciding whether loan forbearance is the best foreclosure-avoidance option for you.
Have questions? Connect with a trusted VA-lending specialist
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 several VA loan forbearance repayment options, including:
- Repayment plan: Your missed payments are spread out over future monthly payments. For example, you might pay your regular mortgage amount plus an additional amount each month until you catch up on the missed payments.
- Payment deferral: The skipped payments are moved to the end of your loan term. This means they don’t increase your immediate monthly payment but extend the timeline of your loan.
- Loan modification: With a VA loan modification, your loan terms may be permanently adjusted, such as lowering the interest rate or extending the loan term, to make monthly payments more affordable.
The right option depends on your financial situation and what you work out with your lender.
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, though the VA is still finalizing implementation guidance.
Who is Eligible for VA Loan Forbearance?
Eligibility for VA mortgage forbearance depends on the borrower’s circumstances. Generally, you must demonstrate a verifiable financial hardship, such as:
- Job loss or reduction in hours/income
- Medical or family emergencies
- Natural disasters
- Deployment or relocation-related financial challenges
The first step in the loan forbearance process is to contact your lender or loan servicer. They’ll review your situation and help create a forbearance agreement. This agreement will outline:
- How long will the forbearance last
- Whether extensions are possible
- The repayment structure once forbearance ends
During the COVID-19 pandemic, the CARES Act gave borrowers with federally backed mortgages temporary relief of up to 360 days. That special eligibility window ended in 2023 when the national state of emergency expired. However, forbearance remains available to Veterans experiencing hardship outside of the CARES Act who meet the eligibility requirements listed above.
Answer a few questions below to speak with a specialist about what your military service has earned you.
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 choices for repayment — such as lump sum, repayment plan or adding missed payments to the loan balance.
Cons of Mortgage Forbearance
- Not loan forgiveness: Missed payments don’t disappear; they must still be repaid later.
- 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: If repayment is structured into a short-term plan, homeowners may face significantly larger monthly payments.
Getting a VA Loan After Forbearance Guidelines
Your ability to refinance or 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 deferment, 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 is eligible once the modification is fully completed.
Please note that all 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 and payment history.
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.
- Deferred, partially claimed or 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, the forbearance was due to the CARES Act 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.
- Deferred, partially claimed or put into a repayment plan: Eligible after three consecutive on-time payments following forbearance. Note: 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.
- 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 lender, understand your VA loan forbearance repayment options and make a plan that works for your family. When you’re ready, know that refinancing or purchasing again is possible once you meet the VA forbearance seasoning requirements.
If you’re considering forbearance or have questions about refinancing after forbearance, connect with a Veterans United VA loan expert at 855-870-8845 or contact us 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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