SCRA for Veterans | Home Caregiving Grant

What Is the SCRA?

The Servicemembers Civil Relief Act (SCRA) is a federal law that provides financial and legal protections to active-duty military members, including those called to active duty from reserve status. The SCRA covers a wide range of financial obligations, including mortgages, HELOCs, credit cards, and other debts.

Key SCRA Protections

Interest Rate Cap

The SCRA caps interest rates at 6% per year on financial obligations incurred before entering active duty. This applies to mortgages, HELOCs, credit cards, and other loans. The interest rate reduction must be applied retroactively to the date of entering active duty.

Foreclosure Protection

The SCRA provides protection against foreclosure during active duty and for a period after. A court order is required before a lender can foreclose on a servicemember's property. This protection extends to obligations incurred before the period of military service.

Lease Termination

Servicemembers may terminate residential and automobile leases without penalty when called to active duty or when receiving permanent change of station orders.

Default Judgment Protection

Courts must appoint an attorney to represent a servicemember before entering a default judgment if the servicemember has not appeared in court.

Who Is Eligible?

SCRA protections are available to:

Active-duty members of the Army, Navy, Air Force, Marine Corps, Space Force, and Coast Guard
Members of the National Guard and Reserves called to active duty
Commissioned officers of the Public Health Service and NOAA
In some cases, dependents of servicemembers

How to Request SCRA Benefits

To request the interest rate cap or other SCRA protections:

Provide your lender with written notice and a copy of your military orders
Submit the request within 180 days after the end of your military service
Contact each creditor individually for obligations you want covered
Keep copies of all correspondence with your lenders

SCRA and HCG Grants

If you are a servicemember or veteran with an active HELOC, you may be eligible for both SCRA protections and HCG grant assistance. During the HCG application process, you will be asked about your military status. Veterans and active-duty servicemembers may receive additional consideration in the grant review process.

For questions about SCRA protections or how they interact with the HCG program, contact us at 401-965-6420.

Additional Resources