SCRA Mortgage Rate Cap: Who Gets 6% and How to Ask
Short answer: Yes, the SCRA can lower your mortgage rate to 6 percent when you go on active duty, but only if you took out the mortgage before you entered military service. The cap lasts through your service and for one year after it ends. It is not automatic for every borrower, so send your lender a written request with a copy of your orders. A VA loan you took out while already on active duty does not qualify for this cap.
Jennifer Rodriguez is a Realtor® and Military Relocation Professional (MRP®) in Northwest Las Vegas helping military families buy with a VA loan.
The Servicemembers Civil Relief Act (SCRA) is a federal law, and this part of it gets misread in both directions. Some people think every military mortgage gets 6 percent. Others have no idea they qualify. Let's make this simple.
Who qualifies for the SCRA mortgage rate cap?
You qualify if your mortgage rate is above 6 percent and the loan was taken out before you entered military service. The law covers a mortgage taken out by you alone or by you and your spouse together.
The people most likely to fit:
- Reservists called to active duty. You bought the house as a civilian, then got orders.
- Guard members on covered orders. This includes federal active duty under Title 10. It also includes orders of more than 30 consecutive days under 32 U.S.C. 502(f) to respond to a declared national emergency.
- People who bought before joining. You owned a home first, then enlisted or commissioned.
- Veterans who go back in. You got out, bought a home, then returned to active duty.
The timing of the loan is the whole question. If you closed on the mortgage after you were already on active duty, this cap does not apply to that loan.
How much can the 6 percent cap save?
The savings equal the interest above 6 percent, and that interest is forgiven. It is not put off until later. Your lender also has to lower your monthly payment by the forgiven amount.
Here is a simple example with made-up numbers. Say you owe $300,000 at 7.5 percent. The rate drops by 1.5 percentage points, and 1.5 percent of $300,000 is $4,500 a year, or about $375 a month. Your actual savings depend on your balance and rate, and the balance changes as you pay the loan down.
The law counts more than the rate. "Interest" under the SCRA includes service charges, renewal charges, fees, and other charges, except bona fide insurance.
How long does the mortgage rate cap last?
For a mortgage, the cap runs for your entire period of military service plus one year after it ends. That extra year is specific to mortgages. For other debts, such as car loans and credit cards, the cap ends when your service ends.
How do you ask for the SCRA rate reduction?
Send your lender a written request with proof of your service. The DOJ and CFPB say the notice can be electronic. Here is the move:
- Find who collects your payment. Use the contact information on your mortgage statement.
- Write a short request. Name your loan number and say you are asking for the SCRA 6 percent interest rate cap under 50 U.S.C. 3937.
- Attach your proof. Use a copy of your orders. The law also accepts other proof of service, such as a certified letter from a commanding officer.
- Keep copies. Save what you sent and the date you sent it.
- Check your next statements. Look for the lower rate, the lower payment, and any credit for past months.
Some lenders check military status on their own, but do not count on it. In a December 2024 letter to lenders, the DOJ and CFPB said many institutions have not automated or simplified this process.
What is the deadline to request the cap?
You have until 180 days after your military service ends. Good news, you do not have to ask on day one. Once your lender gets a proper request, the reduction goes back to the date you were called to service. For reservists, the DOJ and CFPB say protection can begin when you receive certain orders, which may be months before you report.
Does the SCRA protect you from foreclosure too?
Yes, for the same kind of loan. If you took out the mortgage before your service, a sale or foreclosure during your service or within one year after it is not valid without a court order, unless it follows a written agreement that meets the SCRA's rules. The CFPB says this protection applies whether or not you told your lender or servicer about your military status.
If you are behind and your service has affected your ability to pay, a court can also pause a foreclosure case or adjust the loan. A person who knowingly breaks the foreclosure rule can face a fine, up to a year in prison, or both.
Common mistakes with the SCRA mortgage cap
- Assuming a VA loan qualifies because it is a VA loan. The test is when you took out the loan, not what type of loan it is.
- Thinking the extra interest is only delayed. It is forgiven. Your lender cannot add it back later.
- Waiting and then missing the deadline. Mark the date 180 days after your service ends.
- Sending a request with no proof. Attach your orders or another accepted proof of service.
- Refinancing without asking first. The cap covers debt from before your service, and a refinance creates a new loan. Talk to a legal assistance office before you replace a loan that has the cap.
What if your lender says no?
Contact your closest legal assistance (JAG) office. The CFPB also points servicemembers to their state attorney general and takes complaints online. A lender can ask a court for relief from the cap, but the court has to find that your military service did not materially affect your ability to pay the higher rate. A lender saying no in a letter is not the same as a court ruling.
More on VA loans
- VA IRRRL requirements: what a VA streamline refinance is and who qualifies
- Can I use my VA loan after I get out of the military?
Sources
- 50 U.S.C. 3937, maximum rate of interest on debts incurred before military service, Legal Information Institute
- 50 U.S.C. 3953, mortgages and trust deeds, Legal Information Institute
- 50 U.S.C. 3911, SCRA definitions, Legal Information Institute
- DOJ and CFPB joint letter on SCRA interest rate protections, December 5, 2024
- CFPB: limits on what servicemembers can be charged for a loan
- CFPB: foreclosure protection for servicemembers
Frequently asked questions
Does the SCRA lower my mortgage rate if I bought while on active duty?
No. The 6 percent cap covers a mortgage you took out before you entered military service. A loan you took out while already on active duty does not qualify for this cap.
How long does the SCRA mortgage rate cap last?
It lasts for your entire period of military service and for one year after your service ends.
How long do I have to ask for the SCRA rate reduction?
You can ask while you are serving and up to 180 days after your military service ends. Send a written request with a copy of your orders or another accepted proof of service.
Do I have to pay back the interest above 6 percent later?
No. The interest above 6 percent is forgiven, and your monthly payment has to go down by the forgiven amount.
Does the SCRA rate cap cover a joint mortgage with my spouse?
Yes. It covers a mortgage you and your spouse took out together, as long as it was taken out before you entered military service.
Not sure whether your loan fits? Send me the date you closed and the date your orders started, and I will help you sort out the questions to bring to your legal assistance office. You can find me at homesbyjrod.com.
The information in this article comes from the U.S. Code, the DOJ, and the CFPB, checked on November 3, 2026. Laws and lender practices can change. This is general education, not legal or financial advice.
