VA Plan Offers Vets With Overdue Mortgage Payments Aid

VA Plan Offers Vets With Overdue Mortgage Payments Aid

( – COVID has caused financial hardship to many US citizens, including our veterans. The CARES act offered relief to some people, especially those at risk of eviction from their homes. Under a provision, borrowers could delay or even stop mortgage payments by up to 360 days. That allowance is due to end December 31. With many homeowners still behind, the Department of Veterans Affairs has proposed a plan.

The plan, available in its entirety on the Federal Register, may help as many as 60,000 veterans evade eviction if they have VA loans. This plan, which the VA is accepting public comments on until January 7, is actually a low-interest loan borrowers would have 10 years to repay.

Under this program, the VA would pay overdue mortgage payments for up to 9 months. The borrower would pay this loan back while making regular mortgage payments at an interest rate of 1% and a delay of 5 years before said payments began.

Qualifications are:

  • Current (or no more than 30 days behind) on mortgage payments as of March 1, 2020.
  • Received CARES Act clemency from a lender and missed a minimum of one payment since qualifying.
  • Have enough income to continue making payments to lender and adequate debt to income ratio

While we’re still living in such uncertain times, it’s nice to know there are people fighting to keep our veterans safe and secure in their homes. Lord knows they fought enough to keep us safe and secure in ours.

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