Two Powerful Mortgage Protections

Mortgages receive the most comprehensive SCRA protections. You get both the 6% rate cap AND foreclosure protection - a dual shield for your home.

6% Interest Rate Cap

Your mortgage rate drops to 6% for the duration of active duty service, with excess interest forgiven (not deferred).

Foreclosure Protection

Lenders cannot foreclose without a court order while you're on active duty and for 12 months after.

Example Savings Calculation

$300,000 mortgage at 7.5% APR, 30-year term

Original Rate
7.5% APR
SCRA Rate
6.0% APR
Monthly Savings
$297
Annual Savings
$3,564

Foreclosure Protection Details

The foreclosure protection is separate from the rate reduction and provides significant security for military families.

What Foreclosure Protection Means
  • Lender must get court approval before any foreclosure action
  • Court will determine if military service materially affects ability to pay
  • Protection extends 12 months after leaving active duty
  • Applies even if you don't request the 6% rate cap
  • Court may stay proceedings for up to 90 days

How to File Your Mortgage Claim

  1. Identify your mortgage servicer

    Your servicer may differ from the original lender. Check your monthly statement for the correct company name and contact info.

  2. Request the military/SCRA department

    Most major servicers have dedicated military assistance teams. Ask specifically for SCRA processing, not general customer service.

  3. Submit written request with orders

    Send official military orders showing activation date. Include your loan number and explicit request for 6% rate reduction.

  4. Wait for escrow recalculation

    Mortgage servicers must recalculate your escrow account based on the new payment. This takes longer than other loan types.

  5. Verify new payment amount

    Confirm your new monthly payment reflects the 6% rate. Check that escrow shortage (if any) is handled appropriately.

Important: Refinancing

If you refinanced your mortgage after entering active duty, the new loan may not qualify for SCRA benefits. Only the original pre-service mortgage is covered. Consult with a JAG officer if you're unsure about your situation.

Common Questions

Does this apply to second homes? The 6% cap applies to all mortgages on property you own, but foreclosure protection has specific requirements about the property being owned before service.

What about investment properties? Investment properties you owned before service qualify for the 6% rate cap. Foreclosure protection is more limited for non-primary residences.

Can I get a retroactive refund? Yes. If your servicer has been charging more than 6% since your active duty start date, you're entitled to a refund of the excess interest paid.

Maximize Your Mortgage Savings

We'll handle the escrow recalculation, follow up with your servicer, and ensure you get every dollar you're owed.

Calculate My Savings