VA Home Loan Program Unaffected by This Change 

The Department of Veterans Affairs (VA) has announced it will end the Veterans Affairs Servicing Purchase (VASP) program on May 1, 2025, raising concerns for veterans facing foreclosure on their VA-backed home loans. 

It’s important to note that the VA Home Loan Program is unaffected by these changes.   

VASP was launched in May of 2024, and was designed to allow the VA to purchase delinquent loans and restructure them into more manageable terms, often with a fixed 2.5% interest rate. This program offered relief to thousands of veterans during a time of economic uncertainty. 

In fact, since its launch on May 31, 2024, VASP has saved over 17,000 veterans and their families from losing their homes. 

But the VA now argues that the program, especially at the scale it has reached, exceeds its legal authority. Initially intended as a means of last resort and designed for fewer than 100 cases, the Biden administration supercharged VASP. To date, the program has purchased over 17,000 loans at a cost of $5.4 billion. Future projections forecast assistance for up to 60,000 veterans, with an estimated $17 billion in projected costs. 

While the program’s expansion was rooted in compassion, critics inside and outside of government warn that, on top of the exorbitant costs to taxpayers, it may have unintended consequences, including incentivizing veterans to miss payments in order to qualify for significantly lower interest rates. 

Now, with VASP shutting down, the VA has assured that veterans already enrolled will remain in the program and continue receiving its benefits. But for those currently facing foreclosure, or teetering on the edge, a legislative solution is desperately needed. 

HR 1815 – The VA Home Loan Program Reform Act, introduced by Rep. Derrick Van Orden, aims to provide the Secretary of Veterans Affairs with clear authority to create a new, sustainable default management program for veterans. HR 1815 gives the Secretary of the VA the authority to manage a partial claim program, covering up to 20 percent of the unpaid principal balance of any single VA home loan. In return, the VA will receive a secured interest in the loan, subordinate to the primary mortgage lender.  

More urgently, there are just weeks left before VASP expires, and lawmakers are working against the clock. The House Veterans’ Affairs Committee (HVAC) is calling on Veteran Service Organizations (VSOs) to rally behind a bipartisan push—known as a “four corners” approach—to get HR 1815 passed quickly and help prevent a foreclosure crisis among our nation’s veterans. 

Mission Roll Call supports efforts to protect veterans from losing their homes. While we await further progress on HR 1815, we urge Congress to move swiftly and ensure that no veteran is left behind during this transition. Stopgap solutions may be necessary, and we stand ready to support those efforts while advocating for long-term reform. 

As more details become available, we’ll continue to keep our community informed and engaged.