The federal government is offering a loan forgiveness program to help borrowers who are eligible for a VA loan that’s in arrears.
The Department of Veterans Affairs (VA) announced the program on Wednesday.
The loan forgiveness offer is a one-time offer, meaning you have to make a payment to the government in order to get the loan forgiven.
It will be available for up to 30 days, depending on your income and the length of time you’ve been in arresse.
You’ll have to file your VA application for the forgiveness.
You must still make a monthly payment on your VA loan.
You will also need to show that you’re not in arrisse, a condition that means you’ve not made a monthly payments on the VA loan for the past three years.
The program was announced during a meeting at the Department of Housing and Urban Development’s Office of Community Services.
The offer is for a loan forgiven on VA loans that were outstanding from January 1, 2018, to the end of February.
The program was extended to October 31, 2019, the same day the VA announced the new program.
Under the program, you can receive up to $500 in credit toward your VA disability insurance premiums.
The VA says the loan forgiveness can help with “unanticipated expenses that may arise as a result of the VA’s ongoing work with eligible individuals to assist them meet their obligations.”
The VA will be able to offer up to a $2,000 loan waiver if you have at least one month’s outstanding VA loan and can prove that your payments were not made while you were in arisse.