VA Loan Disaster Relief: How to Manage Your Mortgage After a Natural Disaster

Natural disasters can strike with little warning, leaving destruction and uncertainty in their wake. In recent years, the United States has seen an uptick in severe weather events — from wildfires and tornadoes to hurricanes and floods. When your home and livelihood are at risk, knowing what to do next can feel overwhelming.

For Veterans and service members with a VA home loan, there are unique protections and relief options designed to help you recover, repair and regroup. Whether your home was damaged by a hurricane, rendered uninhabitable by an earthquake or impacted by any other declared disaster, the VA offers disaster relief resources to help you stay on track.

Here’s what you need to know about VA home loan disaster relief, and how to take the next steps if you’ve been affected by a natural disaster.

Does the VA Offer Disaster Relief?

Yes, the VA provides several disaster relief resources for borrowers who used their VA loan benefit to purchase or refinance a home. These include both immediate and long-term support options.

If your home sustained damage from a natural disaster, you may be able to access financial support through programs like:

• VA Specially Adapted Housing program: If your home was damaged or destroyed, this program may help you make necessary repairs, specifically if you have service-connected disabilities. Before proceeding, check with your insurance company and FEMA, and then reach out to the VA at 877-827-3702 for guidance.
• Temporary Residence Adaptation (TRA) grant: Disabled Veterans who are temporarily living in a different location due to disaster-related damage may qualify for a TRA grant to make that residence more accessible, even if they don’t own the property.
• 90-day moratoriums on foreclosure: In disaster-declared areas, the VA often encourages lenders to pause foreclosure proceedings for 90 days, giving borrowers time to recover and make informed decisions about their next steps.
• VA public contact teams: After major disasters, the VA deploys teams to provide hands-on assistance to Veterans and coordinate relief efforts on the ground.

More: Housing Grants for Disabled Veterans

VA Housing Support

If a natural disaster has impacted your ability to make on-time payments on your VA loan, don’t panic.

One of the most important first steps is to apply for federal disaster assistance. Visit DisasterAssistance.gov to submit your application. You may qualify for paused loan payments or temporarily redefined loan terms. FEMA’s resources can help you understand what you qualify for and how to move forward.

If the disaster resulted in job loss or reduced income, the Personalized Career Planning and Guidance (PCPG) Program may be able to help you identify new employment opportunities and build a new career plan. The program works with the goal of helping service members and Veterans reach their career goals. This can be especially useful in supporting long-term housing stability.

Managing Loan Payments

After a natural disaster, many worry about missing mortgage payments, but the VA has processes in place to help you stay afloat.

Here’s what to know:

• Late payment charges may be waived. The VA encourages loan servicers to suspend penalties for late payments after disasters.
• Forbearance options are available. You may be able to temporarily pause or reduce payments while you recover.
• Assistance is just a call away. VA Regional Loan Centers can answer questions, walk you through relief options and connect you with the right resources.

Options for Loan Modifications

In some cases, loan modifications can make a significant difference in restoring stability. If you’re struggling to keep up with your VA loan post-disaster, here’s what you need to know about VA disaster loan modification guidelines.

The VA’s loan modification program allows eligible Veterans to extend their loan term, which can reduce monthly payments. To qualify, your VA loan must have closed before the disaster struck, and you must have been no more than 30 days past due at that time. You’ll also need to complete a three-month trial payment plan to demonstrate you can keep up with the new payment schedule.

Refinancing may also be an option. If interest rates have dropped or your situation has changed, you might qualify for a lower rate through the VA’s Interest Rate Reduction Refinance Loan (IRRRL) program. This streamlined refinance can help reduce your monthly costs without requiring a full requalification.

If your home was destroyed, you may still be able to use your second-tier entitlement to purchase a new primary residence or finance necessary repairs to restore your property through a VA rehab loan.

How to Apply for VA Disaster Relief Resources

Beyond housing relief, the VA offers several additional benefits to help Veterans during times of crisis.

• Employee Adjustment Allowance (EAA): If you’re out of work due to the disaster, the EAA may provide up to two months of benefits to ease the financial burden.
• Update VA benefits and contact info: If your address or banking details have changed due to relocation, update your information for VA pensions or Dependency and Indemnity Compensation (DIC) to avoid disruptions.
• VA homeless Veterans helpline: If your home is uninhabitable and you need emergency housing assistance, call 877-424-3838. The National Call Center for Homeless Veterans can help you find temporary housing in your area.
• VA information line (MyVA411): Call 800-698-2411 for general questions or to be connected to the right office.

Building a Long-Term Recovery Plan

Even after the initial crisis has passed, long-term planning is crucial to rebuilding your life and your home.

If you suffered damage to your primary residence, the VA home loan disaster recovery programs can help you recover, but documentation is key.

You’ll want to gather:

• Photos of any damage
• Receipts for hotel stays, repairs and temporary expenses
• A copy of your insurance policy and any claims filed

Communication is also critical. Stay in regular contact with both your VA representative and your mortgage servicer to stay updated and ensure you don’t miss any opportunities for assistance.

Strategies for Financial Recovery

A strong financial foundation can help Veterans transition from recovery to stability. Here are a few tips:

• Create a disaster recovery account. If you receive funds from FEMA, your insurance or the VA, deposit them in a separate account. This will make it easier to track spending and budget for ongoing repairs.
• Save 1-2% of your gross income. Having even a small buffer can help you weather temporary income disruptions while still qualifying for VA home loan disaster relief options.

How You Can Prepare for Future Disasters

While you can’t always predict when disaster will strike, you can take steps to ensure you’re ready if it does.

For example, tornado season in much of the U.S. peaks from March through July, with May being the most active month. Hurricanes can form as early as June and linger through November. By understanding when and where disasters are most likely to occur, you can build a disaster plan that protects your home and family.

Plan for emergencies that may be more common in your area. For example, the Florida coast is prone to hurricanes during certain times of the year.

The key to a good emergency plan is understanding your resources. Take these steps to be prepared financially if disaster strikes:

1. Review your homeowners insurance. Not all natural disasters are covered under standard policies. Events like floods and earthquakes often require separate coverage. Don’t wait until after a disaster to find out what’s excluded in your home insurance plan.
2. Set aside emergency funds. Ideally, aim to save 3 to 6 months of income in an emergency account. Automate contributions to align with your pay schedule so that saving becomes effortless.
3. Protect important documents. Store your VA loan paperwork, insurance documents and identification in a secure, fireproof safe or in encrypted digital storage.
4. Create an emergency contact list. Include your mortgage servicer, VA loan representatives, family members and local relief agencies.
5. Join Veteran support networks. Many local and regional organizations host disaster preparedness workshops that are specifically tailored for Veterans.

Natural disasters can feel devastating, but Veterans aren’t alone. With robust VA home loan disaster relief resources, clear steps to recovery and a plan for the future, you can rebuild with confidence and security.