Consumer Fraud Alert - Tips for avoiding VA home loan scams

  • Published
  • By Patrick Brick, Carolyn Hahn and Alberto Planas, Consumer Financial Protection Bureau

People with VA home loans have been receiving fraudulent calls and mailers from companies who claim to be affiliated with the government, the Department of Veterans Affairs, or your home-loan servicer.

These calls or mailers often try to sway you to refinance your home, agree to a loan modification, or pay your loan via purchased money orders. They may also try to convince you that your home is facing foreclosure.

Be wary of any individual or lender that contacts you and:

  • Asks you to pay fees upfront before receiving any services
  • Tells you to cancel your mortgage payment and resend the funds elsewhere
  • Asks you to make your mortgage payment via money order or gift cards
  • Tells you to make mortgage payments to someone other than your current loan servicer
  • Asks you to stop making mortgage payments altogether
  • Represents that they’re calling on behalf of the VA or another agency of the U.S. government
  • Guarantees to get you a loan modification or stop the foreclosure process
  • Asks you to sign over the title to your property
  • Pressures you to sign papers you haven't had a chance to read thoroughly or that you don't understand
  • Or other unusual offers or requests

Never give out personal information to a lender or servicer who contacts you out of the blue. Scammers can spoof phone numbers, so you can’t rely on caller identification. If you’re unsure, it’s always safer to hang up and call your loan servicer directly at the number on your mortgage statement.

If you are a victim of or spot a scam, you should first file a complaint with your state attorney general’s office. You should also report it to the Federal Trade Commission at

In response to concerns raised by VA officials about potentially unlawful advertising in the mortgage lending market, the CFPB recently conducted a sweep of investigations of multiple mortgage companies that used deceptive mailers to advertise VA-guaranteed mortgages. More than $4.4 million was obtained in civil money penalties as a result of this sweep. These investigations reflect a commitment to enforcing the laws to ensure the financial marketplace is fair and consumers are protected from deceptive practices, including service members, veterans and surviving spouses whom VA-guaranteed mortgages are designed to benefit.

If you can’t pay your mortgage or are worried about missing a mortgage payment, you have options. Use our checklist for more information on how to avoid foreclosure.

You can also visit the VA website or call a VA Regional Loan Center at 1-877-872-3702 for more information.