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VA loan Program Reform Act Signed Into Law, Bolstering Veteran Homeownership
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By Priyashah
May 15, 2024
WASHINGTON – President Donald Trump has signed the VA Loan Program Reform Act into law, a significant legislative achievement sponsored by Rep. Derrick Van Orden of wisconsin. This new law introduces a permanent partial claims program within the VA Home Loan Program, designed to provide crucial financial assistance to veterans who may fall behind on their mortgage payments.
The legislation effectively replaces the Veterans Affairs Servicing Purchase (VASP) program, which concluded on May 1, 2025. Veterans who were approved for the VASP program prior to this date will be permitted to continue their participation, as confirmed by the U.S. department of Veterans Affairs. this reform ensures that veterans can access federal aid to manage their mortgage obligations, mirroring the support available through other federal housing programs.
“This law helps fulfill a promise to those who protected us with their service adn continue to do so today by providing a path to maintain homeownership,” stated Rep. Van Orden. “Veterans will be permitted to have the same programs non-veterans have available to them through FHA loans, allowing veterans who have fallen behind on their mortgages to receive federal assistance.”
Rep. Mike Bost, R-Ill., Chairman of the House Committee on Veterans’ Affairs, emphasized the bill’s impact: “Our veterans and their families should have every tool at their disposal to keep their homes and reduce the risk of foreclosure if they fall into financial hardship or endure a national disaster. Today, House Republicans and President Trump made that a reality for every veteran homeowner.” He added, “Rep. Van Orden’s VA Home Loan Program Reform Act will modernize the VA Home Loan to meet veterans’ needs and reduce the risk of veteran homelessness. I’m proud that we fought hard to get this good bill to President Trump’s desk to keep our promise to those who have served.”
The full text of the bill can be accessed here.
Evergreen Insights
The VA Home Loan Program has a long history of supporting veterans in achieving homeownership. Established in 1944 through the G.I. Bill of Rights,the program has facilitated millions of home purchases for service members and veterans. Historically,the program has offered benefits such as no down payment requirements and competitive interest rates. The introduction of the permanent partial claims program signifies a modernization of these efforts,adapting to contemporary economic challenges and ensuring continued support for veterans facing financial difficulties.
Frequently Asked Questions
- What is the primary purpose of the VA Loan Program Reform Act?
- The VA Loan Program Reform act aims to
