VA Home Loan Program Reform Act: What Veterans and Families Need to Know

There’s some good news for Veterans and military families across the country: the VA Home Loan Program Reform Act is now law. This new legislation brings back critical protections that were lost when a previous program ended—offering a permanent safety net to help Veterans stay in their homes during tough times.

Why This Matters

As someone who’s worked closely with Veterans for years, I know that qualifying for a home loan is just one part of the journey. Life happens—job changes, deployments, medical issues, natural disasters—and sometimes, even the best-prepared families can fall behind on payments.

That’s where the VA used to step in with options to help. For a while, they offered a program called VASP (Veterans Affairs Servicing Purchase), which helped more than 17,000 Veterans by purchasing loans in default and offering lower interest rates and affordable repayment terms. Unfortunately, that program ended on May 1, 2025.

Without VASP, many Veterans were left without the same foreclosure prevention tools that FHA and USDA borrowers receive. The VA Home Loan Program Reform Act fills that gap—with a long-term, congressionally approved solution.

How the New Law Helps

✅ Restores a Partial Claim Option

Veterans now have access to a partial claim program—this means that if you fall behind on payments, the VA can step in to cover missed payments (up to 25% of the unpaid balance or even 30% in certain hardship cases). This brings your loan current without requiring a refinance or full modification.

✅ Provides a Clear Path to Prevent Foreclosure

The law requires mortgage servicers to follow a specific order of steps—repayment plans, forbearance, or loan modification—before they can begin foreclosure. This gives Veterans a chance to recover and stay in their homes.

✅ Offers Help During Natural Disasters or Hardship

Whether you’re impacted by a natural disaster, injury, or financial hardship, the VA now has expanded tools to help you avoid losing your home.

✅ Helps Keep Veterans Off the Street

This reform also supports national efforts to reduce Veteran homelessness by increasing funding and access to supportive housing services.

This Is About More Than Loans—It’s About Honor

You’ve served our country. This law helps ensure our country serves you in return. It restores something we should have never lost—a meaningful, permanent way to protect the homes Veterans work so hard to earn.

Where to Get Help

If you’re a Veteran homeowner and you’re having trouble making mortgage payments, don’t wait. These resources can help:

• VA Loan Servicer (Your Mortgage Company): Call the number on your mortgage statement and ask to speak with the VA loss mitigation team.
• VA Regional Loan Center: Call 1-877-827-3702 (Monday–Friday, 8 a.m.–6 p.m. EST) or visit this VA support page.
• HUD-Approved Housing Counselors: Get free help at HUD.gov or call 1-800-569-4287.
• Veterans Service Organizations: Groups like the American Legion, VFW, and DAV may offer assistance and referrals.

You don’t have to go through this alone. Help is available—and this law ensures that Veterans have more options than ever before.