Managing Your VA Home Loan During Deployment
If you’re an Active-Duty servicemember and you are deployed or preparing for deployment, you may have concerns about making mortgage payments. Fortunately, the VA loan program offers specific protections and flexibility designed to support servicemembers during this time. If you need specific guidance about managing your VA loan during deployment, we’re happy to go over options with you.
VA Occupancy Requirements
VA loans require the borrower to occupy the home as a primary residence. However, deployment is considered a temporary duty assignment. As long as the borrower intends to return and occupy the property, their loan eligibility remains unaffected.
Key Considerations:
- Deployment does not violate occupancy rules.
- No penalties or forced refinancing occur due to deployment.
- A spouse and/or dependent(s) may reside in the home.
- A Power of Attorney (POA) can allow a trusted individual to manage loan matters on the borrower’s behalf.
Mortgage Obligations and Legal Protections
Mortgage payments must continue during deployment. To support servicemembers, the Servicemembers Civil Relief Act (SCRA) provides several protections:
| Protection | Description |
| 6% Interest Rate Cap | Applies to loans originated before Active-Duty. |
| Foreclosure Protection | No foreclosure without a court order during and 9 months post-deployment. |
| Safeguards from Unfair Court Rulings | Courts must consider Active-Duty status. |
| Delay of Civil Actions | Certain legal proceedings may be postponed. |
To activate SCRA benefits, borrowers must notify their lender of deployment and provide documentation of Active-Duty status.
Managing Your Mortgage While Away
Servicemembers have several options to maintain their mortgage during deployment:
- Automated Payments: Set up recurring payments linked to a funded account to avoid missed deadlines.
- VA IRRRL: A VA Interest Rate Reduction Refinance Loan is a streamlined option that could allow qualified borrowers to make their payment more manageable while they’re deployed.
- If rates decline, they may refinance their current VA loan to a lower-rate VA loan (subject to eligibility and lender approval) which could decrease your monthly payment.
- Borrowers may also change an adjustable-rate mortgage to a fixed-rate mortgage to make their interest rate more predictable.
- Alternative Payment Plans: Options such as forbearance, loan modification or repayment plans may be available for those facing financial hardship.
Renting Your Home During Deployment
- Renting may be possible, but it’s essential to consult your lender first. Consider the following:
- Renting does not release your VA loan entitlement.Renting could affect whether your home is considered a departing residence.
- Mortgage obligations remain regardless of rental income.
When to Contact Your Lender
Notify your lender as soon as deployment is confirmed—especially if you anticipate difficulty making payments. Reaching out to your lender as early as possible ensures access to available relief options if necessary.
Dedicated Support for Servicemembers
Our team is committed to assisting Active-Duty borrowers with tailored mortgage solutions. Whether you need help with refinancing, payment plans or SCRA documentation, we’re here to support your homeownership journey.
Contact a VA Loan Expert
For personalized guidance, reach out to our VA mortgage team. We’ll help you navigate deployment with confidence and clarity.
By refinancing an existing loan, the total finance charges may be higher over the life of the loan.