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The VA Has A Little Known Program To Help Veterans Keep Their Homes
The federal mortgage forbearance program being offered through all of the governmental housing agencies is open for enrollment through September 30th, 2021. However, the VA has a second, separate plan available to veterans. This plan is known as the VA Partial Claim Program, and is open for enrollment until September 28th, 2022. Under this program, the VA will pay off the missed payments and give the homeowner a zero interest second mortgage.
30 Year Fixed Mortgage Rate
|Change From Yesterday||-0.051%|
|Change From One Week Ago||-0.019%|
|Change From One Year Ago||-0.121%|
15 Year Fixed Mortgage Rate
|Change From Yesterday||-0.004%|
|Change From One Week Ago||0.015%|
|Change From One Year Ago||-0.429%|
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The VA’s Partial Claim Payment Program is available to veterans who are more than 30 days delinquent on their mortgage due to COVID-related economic difficulties. This program is specifically for veterans who already received federal forbearance, but are still struggling to make their payments. The Partial Claim Payment Program will pay the past due balance on the mortgage and also create an interest free second mortgage on the property. The money does not have to be repaid unless the home is sold or refinanced.
Applying to multiple lenders when you are seeking mortgage pre-approval has several pros and cons. On one hand, it can cause lenders to compete with each other to offer you better terms. It also gives you a chance to see which companies have the best customer service. However, you can wind up with multiple hard pulls on your credit report, which hurts your chances for approval. You may also be flooded with calls from mortgage lenders if you apply through online platforms. This guide shows you how to do multiple applications the right way.
The current combination of record high home prices and record low interest rates make reverse mortgages a particularly appealing option for aging Boomers. However, the payout options are often complicated. A reverse mortgage should not be undertaken without the assistance of a financial advisor, but it is an option worth exploring if you are cash poor and equity rich.