va mortgage; va vasp program If you’re a veteran facing the stress of falling behind on your home loan, help is on the way. The VA Home Loan Program Reform Act, a new law signed by the president on July 30, establishes a partial claim program designed to provide federal assistance and a crucial safety net for veterans struggling with their Department of Veterans Affairs-backed mortgages.

This vital legislation enhances the VA secretary’s authority to manage home loan defaults, mandates a strategy for veteran real estate representation and increases funding for homeless veterans’ services.

The new partial claims program replaces the Veterans Affairs Servicing Program (VASP)—a “last-resort option” designed to help delinquent borrowers avoid foreclosure by lowering their mortgage rate and making monthly payments more affordable.

“The shift to the partial claims program aims to provide a more consistent and effective solution for veterans facing financial hardship, aligning VA’s loss mitigation options with those available through other federal housing programs,” DAV Associate National Legislative Director Joe Lemay said.

The VA home loan program, a cornerstone benefit for veterans, was established as part of The Servicemen’s Readjustment Act of 1944, commonly known as the GI Bill. This initiative program has profoundly impacted the lives of so many service members and their families, with more than 3.7 million active home loans currently guaranteed by the VA.

DAV advocates for equitable housing protections for those who served, particularly those who were disabled as a result of that service. The recently enacted law was supported by a resolution adopted by DAV members that supports the improvement and modernization of the home loan guaranty benefit and other housing-related programs.

“This law helps ensure veterans are not left behind when financial hardships strike,” said Joy Ilem, DAV’s national legislative director. “DAV welcomes the enactment of the VA Home Loan Program Reform Act, which gives veterans with VA-backed loans access to critical tools to help prevent foreclosure.”

The VA is currently working to implement this new program. If you are a veteran struggling with your mortgage, we recommend the following:

  • Contact Your Servicer: Reach out to your mortgage company to discuss your situation and inform them you are seeking assistance.
  • Reach Out to DAV: Contact your nearest DAV benefits advocate for guidance and to stay informed about the program’s availability: benefitsquestions.org.

For more updates on other major veterans’ legislation, join DAV CAN (Commander’s Action Network) at davcan.org.