For a service member who owns a home, the Servicemembers Civil Relief Act (SCRA) offers three main protections: a 6% interest cap (50 U.S.C. § 3937) and foreclosure protection (§ 3953), both limited to mortgages taken out before military service, plus court stays when military duty keeps you from appearing in a civil case (§§ 3931, 3932). A mortgage, including a VA loan, taken out while you were already on active duty gets neither the rate cap nor the foreclosure protection. The tenant-side rules, such as ending a lease on orders, are a different set of sections.

The short version

  • The 6% cap applies only to debt incurred before you entered military service. For a mortgage, it lasts during service and one year after.
  • Interest above 6% is forgiven, not deferred. You ask in writing, with your orders or another indicator of service, no later than 180 days after release from service.
  • A sale or foreclosure on a pre-service mortgage during service or within one year after is not valid without a court order or a valid written waiver.
  • In a civil case, you can ask for a stay of at least 90 days if duty keeps you from appearing, with letters from you and your commanding officer.
  • Whether these protections still apply once you rent the home out is not addressed in the statute. Ask legal assistance.
  • None of these sections caps the rate on a mortgage taken out while already on active duty.

Who counts as being in military service

Under 50 U.S.C. § 3911, "military service" for Army, Navy, Air Force, Marine Corps, Space Force and Coast Guard members means active duty as defined in 10 U.S.C. § 101(d)(1). For National Guard members it includes a call to active service of more than 30 consecutive days under 32 U.S.C. § 502(f) to respond to a presidentially declared national emergency, supported by federal funds. It also covers active commissioned officers of the Public Health Service and NOAA. The period of military service runs from the date you enter service to the date of release.

The 6% interest cap (50 U.S.C. § 3937)

The cap covers "an obligation or liability bearing interest at a rate in excess of 6 percent per year" that you, or you and your spouse jointly, incurred before you entered military service. It can help, for example, a reservist who bought a home before being called to active duty.

QuestionWhat § 3937 says
How long it lastsFor a mortgage or trust deed: during service and one year after. For other debts: during service.
What happens to interest above 6%It is forgiven, and the periodic payment is reduced by the forgiven amount.
What counts as interestService charges, renewal charges, fees and other charges, except bona fide insurance.
How to askWritten notice plus a copy of your orders (or another appropriate indicator of service, such as a certified letter from a commanding officer).
Deadline to askNo later than 180 days after your release from military service.
Effective dateBack to the date you were called to military service.
Can the lender check itself?Yes, a creditor may verify service through the Defense Manpower Data Center.
Can the lender get relief?A court may grant it if your ability to pay more than 6% is not materially affected by your service.

Whether the cap carries over when a pre-service mortgage is refinanced during service is not addressed here; ask legal assistance before you refinance.

Foreclosure protection (50 U.S.C. § 3953)

Section 3953 applies only to an obligation on property you own that (1) originated before your period of military service and that you still owe, and (2) is secured by a mortgage, trust deed or similar security.

  • Court action. In a case filed during service or within one year after, the court may on its own, and must on your application when your ability to pay is materially affected by service, stay the proceedings or adjust the obligation.
  • Sale or foreclosure. A sale, foreclosure or seizure for a breach of that obligation is not valid if made during service or within one year after, unless it follows a court order granted beforehand or a written waiver agreement under § 3918.
  • Penalty. A knowing violation, or attempt, is punishable by a fine, up to one year in prison, or both.

The protection follows the pre-service mortgage. The statute describes "property owned by a servicemember" and does not say whether a home now rented to tenants still qualifies. Do not assume either way; take the question to your legal assistance office.

California also has a deferral statute, Military and Veterans Code § 409.3, that lets a service member ask a court to defer pre-service obligations such as mortgage installments. Have legal assistance confirm how it applies to you.

When you are sued or need to sue

As an owner you may be a party to a civil case, such as an unlawful detainer or a deposit dispute. Two sections can apply.

Stay when you have notice of the case (§ 3932)

If you are in military service, or within 90 days after release, and have received notice of a civil action, the court must, on your application, stay the case for not less than 90 days. The application needs:

  1. a letter from you explaining how current military duty materially affects your ability to appear, and a date when you will be available; and
  2. a letter from your commanding officer stating that current duty prevents your appearance and that military leave is not authorized.

You can ask for more time; if the court refuses an additional stay, it must appoint counsel for you. If you apply under § 3932 and are unsuccessful, you may not then seek the protections of § 3931.

Default judgments (§ 3931)

In a case where the defendant does not appear, the plaintiff must file an affidavit stating whether the defendant is in military service. If the defendant appears to be in service, the court may not enter judgment until it appoints an attorney for the defendant, and if the defendant is in service it must grant a stay of at least 90 days when there may be a defense that cannot be presented without the defendant, or counsel cannot contact the defendant. A default judgment entered during service or within 60 days after can be reopened on an application filed no later than 90 days after release, if service materially affected your defense and you have a meritorious or legal defense.

As a landlord suing a tenant who does not appear, you file that same affidavit. The tenant-side rules are on military tenants and the SCRA.

What the SCRA does not do for owners

  • It does not cap the rate on a mortgage taken out while you were already on active duty.
  • Its foreclosure protection (§ 3953) does not cover a mortgage that originated during service.
  • It does not automatically stop a case. You, or the court, must act, and the § 3932 stay requires the letters above.
  • The FY2025 and FY2026 defense authorization acts did not change these owner protections.

For the lease rules that protect a tenant who is a service member, see when a military tenant gets PCS orders and the military clause guide.

For owners

  1. Check when your mortgage started compared with your entry into service. That decides whether §§ 3937 and 3953 can apply.
  2. Send the 6% request in writing with a copy of your orders, and keep proof of delivery.
  3. Keep copies of orders and a contact for your commanding officer's office. A court stay needs a letter from them.
  4. Give someone authority to receive mail and act while you are away. See power of attorney for military homeowners.
  5. Ask your servicer early if you expect trouble paying. For VA loans, the VA loan occupancy guide explains why the 2025 Partial Claim Program may not reach a rented home.

McKee Properties manages rentals from its Coronado office; contact us with questions about your property.

Help on base

Start with your installation legal assistance office for SCRA questions. Under 10 U.S.C. § 1044, legal assistance may be provided, subject to the availability of legal staff. Military OneSource's Legal Services Locator, or 800-342-9647, can point you to an office.

Frequently asked questions

Does the SCRA cap the rate on my VA loan?

Only if the loan was taken out before you entered military service. Section 3937 covers debts "incurred... before the servicemember enters military service." A VA loan or other mortgage taken out while already on active duty does not qualify.

How long does the 6% cap last on a mortgage?

During your period of military service and one year after, for a mortgage, trust deed or similar security. For other debts it lasts during service only. You must give written notice with your orders no later than 180 days after release.

Can my lender foreclose while I am deployed?

On a mortgage that originated before your service, a sale or foreclosure during service or within one year after is not valid unless a court ordered it beforehand or you signed a valid waiver under § 3918. On a mortgage taken out during service, § 3953 does not apply.

Does the SCRA still protect my home if I rent it out?

The statute does not say. Section 3953 applies to "property owned by a servicemember" with a pre-service mortgage, and does not address a home now rented to tenants. Ask your legal assistance office before relying on it.

Can a court case against me be paused while I am on duty?

Yes, if you apply while in military service or within 90 days after release and you have notice of the case. Under § 3932 the court must stay a civil case for at least 90 days when you submit a letter explaining how duty affects your ability to appear and a commanding officer's letter stating that duty prevents it and leave is not authorized.

This is general information, not legal or tax advice. Rules change; confirm your situation with your installation legal assistance office, a California attorney or a tax professional.

Sources

Verified October 19, 2026.

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