VA Home Loan Program Reform Act of 2025 (H.R. 1815)
On July 30, 2025, President Trump signed the much anticipated, VA Home Loan Program Reform Act. This program will give Veterans who are in default on a VA home loan another way to save their home after VASP was not extended.
The newly enacted VA Home Loan Program Reform Act will create a Partial Claim program through the VA. This undertaking came in an effort to modernize the VA Home Loan program. Those Veterans facing foreclosure were left with uncertainty after the VA did away with the short lived VASP initiative.
Now, Veterans who are behind on mortgage payments may be eligible to get up to 30% of their unpaid loan balance covered by the VA. The amount is owed but moved to the end of the loan. This amount will not accrue interest, and no monthly payment needs to be made.
The VA Home Loan Program Reform Act had a tremendous amount of support from key industry players such as: Mortgage Bankers Association, Rocket Mortgage, National Association of Realtors (NAR), Freedom Mortgage, National Association of Mortgage Brokers (NAMB), Lyft, Mission Roll Call, National Coalition for Homeless Veterans (NCHV), and The American Legion.
While the new law is in effect it will understandably take time for Loan servicers to implement the program. Loan Servicers must follow the normal loss mitigation waterfall, meaning that prior to starting a foreclosure action, all relief options must be explored.
The VA Home Loan Program Reform Act is a step in the right direction; however, it does have specific criteria Veterans must meet to qualify. For example, the hardship causing the loan to go into default must have occurred between March 2020 and May 2025. To see if you qualify under this new program please contact J. P. Robinson Law.
