On July 30, 2025, President Donald Trump signed the VA Home Loan Program Reform Act (H.R. 1815) into law, a bipartisan measure aimed at preventing veteran homelessness and modernizing the Department of Veterans Affairs’ home loan program. The legislation, championed by Representative Derrick Van Orden (R-Wis.), establishes a permanent partial claims program, allowing veterans who fall behind on mortgage payments to defer missed payments to the end of their loan term, avoiding foreclosure. This replaces the Biden-era Veterans Affairs Servicing Purchase (VASP) program, which was terminated in May 2025, leaving 80,000 veterans at risk, per ICE Mortgage Technology data.
The act aligns VA loans with Federal Housing Administration programs, offering veterans critical relief amid rising 7% mortgage rates. It could help over 20,000 seriously delinquent borrowers retain their homes, according to the Mortgage Bankers Association. The law also boosts funding for the VA’s Grant and Per Diem program, supporting transitional housing for homeless veterans. House Veterans’ Affairs Committee Chairman Mike Bost (R-Ill.) praised the bill, stating it ensures “veterans have every tool to keep their homes” during financial hardship or natural disasters.
Endorsed by groups like the National Association of Realtors and Veterans of Foreign Wars, the law addresses the needs of 3.7 million VA loan holders. Democrats, like Representative Chris Pappas (D-N.H.), emphasized its role in filling the gap left by VASP’s abrupt end. With veteran homelessness a pressing issue—Los Angeles alone has the highest number of homeless veterans—the act marks a significant step toward stability.
