VA issued Circular 26-24-08 to offer a 40-Year Loan Modification option to assist borrowers in reaching an affordable payment in the current environment of rising interest rates. Per the Circular, VA has provided advance consent to loan modifications that extend the loan repayment term up to 480 months from the due date of the first payment required under the modification, provided that the proposed modification allows the borrower to reach an affordable monthly payment and meets certain conditions listed in 38 C.F.R. § 36.4315 (Loan Modifications). The Circular went into effect April 17, 2024.
Click to view the VA Circular 26-24-08: https://www.tenaco.com/wp-content/uploads/2024/04/VA-Circular-26-24-08-04-17-24.pdf
