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4d ago

VA Ends Mortgage Rescue Program for Veterans Without Immediate Replacement

The Veterans Affairs Servicing Purchase Program, which helped struggling veteran homeowners, ceased new enrollments on May 1, leaving tens of thousands at risk of foreclosure.

People walk past the Department of Veterans Affairs headquarters a block from the White House on March 6 in Washington, DC.
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Overview

  • The Department of Veterans Affairs (VA) has officially stopped accepting new enrollments for the Veterans Affairs Servicing Purchase Program (VASP) as of May 1, 2025.
  • Launched in May 2024, VASP acquired over 17,000 troubled VA loans worth $5.48 billion, modifying terms to help veterans avoid foreclosure.
  • Housing advocates warn that without a replacement, nearly 90,000 veterans with troubled VA loans, one-third of which are already in foreclosure, face heightened risks of losing their homes.
  • House Republicans are advocating for a partial claims program to provide interest-free loans to veterans in financial distress, while Democrats and advocates demand immediate relief measures.
  • The VA asserts that existing VASP participants will remain unaffected and points to other housing assistance options, citing the agency's limitations as a loan-restructuring service.