FHA, VA, Fannie Mae, and Freddie Mac all currently offer updated Loan Modification Programs in 2025. FHA focuses on extended COVID-19 recovery options and permanent loss mitigation; VA has just enacted the VA Home Loan Program Reform Act with new foreclosure-prevention tools; Fannie Mae and Freddie Mac both rely on their Flex Modification programs, targeting a 20% payment reduction, with recent updates to credit score rules and potential assumable/portable loan structures.
FHA Loan Modifications (2025)
·COVID-19 Recovery Options Extended: FHA extended temporary recovery options until February 1, 2026, allowing servicers to continue using partial claims and streamlined modifications.
·Permanent Loss Mitigation Updates: FHA revised its Handbook 4000.1 to incorporate lessons from pandemic-era policies, including clearer rules for forbearance, partial claims and loan modifications.
·24-Month Limit: Borrowers are limited to permanent loss mitigation solutions within a 24-month window.
·FHA is still bridging pandemic-era policies with permanent rules.
·VA just modernized its foreclosure-prevention toolkit with lower-rate mods and long-term extensions.
·Fannie Mae & Freddie Mac remain aligned under Flex Modifications, but are innovating with credit score flexibility and potential assumable/portable mortgage.
If you’re struggling with mortgage delinquency, UCMA can help you navigate FHA, VA, Fannie Mae, and Freddie Mac loan modification programs.
Disclaimer: United Capital Mortgage Assistance (UCMA) is a private company and is NOT associated with the government, any government agency or any mortgage lender/servicer. UCMA is NOT a law firm and does not provide legal advice. All claims of success are based on past results and are not a guarantee of future outcomes.
FHA, VA, Fannie Mae, and Freddie Mac Loan Modifications for 2025 Compared
FHA, VA, Fannie Mae, and Freddie Mac all currently offer updated Loan Modification Programs in 2025. FHA focuses on extended COVID-19 recovery options and permanent loss mitigation; VA has just enacted the VA Home Loan Program Reform Act with new foreclosure-prevention tools; Fannie Mae and Freddie Mac both rely on their Flex Modification programs, targeting a 20% payment reduction, with recent updates to credit score rules and potential assumable/portable loan structures.
FHA Loan Modifications (2025)
· COVID-19 Recovery Options
Extended: FHA extended temporary recovery options until February
1, 2026, allowing servicers to continue using partial claims and
streamlined modifications.
· Permanent Loss Mitigation
Updates: FHA revised its Handbook 4000.1 to incorporate
lessons from pandemic-era policies, including clearer rules for forbearance, partial claims and loan modifications.
· 24-Month Limit:
Borrowers are limited to permanent loss mitigation solutions within a 24-month
window.
· Tools Available:
o Loan modifications (rate/term
adjustments, re-amortization)
o Partial claims (HUD advances funds
to cover arrears, added to loan balance)
o Forbearance agreements
For FHA Loan Modification help click Foreclosure Help
VA Loan Modifications (2025)
· VA Home Loan Program Reform Act (H.R. 1815): Became law in July 2025, reintroducing foreclosure-prevention tools.
· New Options:
o Partial Claims Program
Restored: Allows arrears to be covered and added to the loan balance.
o Reduced Interest Rate
Modifications: Eligible veterans may receive modifications at 2.5% interest.
o 40-Year Loan Modification
Option: VA Circular 26-24-8 authorized extensions up to 480 months.
· VASP Program Ended:
The Veterans Affairs Servicing Purchase program was terminated, replaced by these new tools.
See if you qualify for a VA or type of Loan Modification
Fannie Mae Loan Modifications (2025)
· Flex Modification Program:
o Designed for borrowers with
long-term hardship.
o Targets a 20% reduction in
principal & interest payments.
o Steps include capitalizing
arrears, adjusting interest rates, extending terms, and principal forbearance.
· Recent Updates:
o Credit Score Requirement
Removed: As of Nov 16, 2025, Fannie Mae eliminated
the 620 minimum credit score for DU loans.
o Exploring
Assumable/Portable Loans: Potential future option to transfer mortgages between buyers or properties.
Contact UCMA for Foreclosure Prevention Help
Freddie Mac Loan Modifications (2025)
· Flex Modification Program:
Mirrors Fannie Mae’s approach, also targeting a 20% payment reduction.
· Recent Updates:
o April 2025 Guide Bulletin
clarified terms and servicer instructions.
o Expanded eligibility for principal
forbearance when loan-to-value exceeds 50%.
o Exploring assumable and
portable loan structures alongside Fannie Mae
Stopping Foreclosure on Freddie Mac Loans
Comparison Table
Program
Key Features
(2025)
Unique Updates
FHA
Loan mods, partial claims, forbearance
Extended COVID-19 recovery until 2026; 24-month limit
VA
Loan mods, partial claims, 40-year terms
Reform Act 2025; 2.5% interest mods; VASP ended
Fannie Mae
Flex Modification (20% reduction)
Removed 620 credit score minimum; exploring
assumable/portable loans
Freddie Mac
Flex Modification (20% reduction)
Expanded forbearance eligibility; clarified terms;
exploring assumable/portable loans
Key Takeaway:
· FHA is still bridging pandemic-era policies with permanent rules.
· VA just modernized its foreclosure-prevention toolkit with lower-rate mods and long-term extensions.
· Fannie Mae & Freddie Mac remain aligned under Flex Modifications, but are innovating with credit score flexibility and potential assumable/portable mortgage.
If you’re struggling with mortgage delinquency, UCMA can help you navigate FHA, VA, Fannie Mae, and Freddie Mac loan modification programs.
Learn More About Loan Modification Options or call 1‑800‑474‑1407 for your FREE Consultation today!
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