America’s veterans have served our country with selflessness and dedication, yet far too many struggle with the realities of homelessness. In fact, thousands of veterans in the DMV area, and many more nationwide, face eviction, foreclosure, or even nights spent in cars and shelters. The good news: major changes have arrived designed to help veterans keep (or finally find) a home.
In July 2025, Congress passed the VA Home Loan Program Reform Act (H.R. 1815), and President Trump signed it into law on July 30, 2025. This reform is a game-changer for any veteran facing housing insecurity, whether you’re worried about missing mortgage payments, fighting foreclosure, or trying to secure stable housing for your family.
So what does the new law mean for veterans who are homeless or at risk? Here’s how it can make a real difference.
One of the most powerful parts of this reform is the creation of a five-year Partial Claim Program. Historically, many veterans lost their homes not because they were reckless, but because they hit a few months of bad luck, an illness, a lost job, a family emergency, and then the world crashed in.
Here’s what’s new:
If a veteran falls behind on their mortgage or is at immediate risk of missing payments, the VA can now step in. Under this law, the VA is allowed to purchase up to 25% of a veteran's mortgage debt if they reach default, giving them a breathing room and a shot at getting back on track. And for those who struggled during COVID-19 (think March 2020 to May 2025), the help can stretch up to 30% of their remaining loan balance.
What does this mean for veterans? Instead of staring down the frightening prospect of foreclosure (and possibly homelessness), there’s now an official “safety net.” The VA’s partial claim sits as a non-interest bearing, subordinate loan, so veterans can pause, regroup, and start fresh, without losing their home.
For the estimated 70,000 veterans with serious mortgage delinquencies right now, this is massive. It’s not just about stopping a foreclosure, it’s about helping veterans stay connected to their communities, maintain stability for their kids, and preserve the dignity they fought to defend.
Let’s keep it real: veterans looking for homes often find themselves at a competitive disadvantage versus other buyers. Why? Until now, VA loans didn’t allow veterans to pay real estate agent commissions directly. In hot housing markets (like ours here in the DMV), where sellers often don’t cover commissions, this put VA loan buyers at the back of the line.
Now, that’s history. The reform makes it permanently legal for veterans to pay agent fees out of pocket, just like buyers with conventional loans. This removes one big barrier and lets veterans compete fairly for homes, even in tight, high-demand neighborhoods. For those transitioning out of homelessness, this simple change can open doors to stable housing that might have once seemed out of reach.
What about veterans who are already homeless? The new law didn’t forget them. In fact, it turbocharges support for the services veterans need to get back on their feet.
The Grant and Per Diem (GPD) Program, which funds transitional housing and supportive services, is seeing a major funding boost: from an annual cap of $258 million to $344 million for both 2025 and 2026. That’s a huge leap, and it means more beds, more job help, and more connections to permanent housing for those who need it most.
This funding especially targets some of the most vulnerable veterans, those dealing with health effects from toxic exposures, who often face greater struggles after leaving service. Part of the boost comes via the Toxic Exposures Fund, cementing a long-term financial commitment to helping these vets.
It might surprise you to learn that, for years, the VA’s foreclosure prevention options lagged behind those approved by other federal agencies like FHA or USDA. Veterans couldn’t always access the same kinds of loan modifications or payment plans as non-veterans in distress.
Now, under the new rules, the VA will provide the same level of protection and flexibility. This means veterans can now access every proven tool in the federal housing toolbox, so fewer fall through the cracks. The VA will be required to follow clear, step-by-step loss mitigation procedures before foreclosure is even considered. This new alignment brings the VA’s help in line with the very best in the country, closing a gap that has hurt thousands in the past.
A huge shift with this reform is its “prevention-first” approach. The new law doesn’t just rescue veterans after things go bad; it puts in place proactive steps so that veterans get help before foreclosure becomes inevitable.
Here’s how the process works:
This systematic approach offers veterans hope and time to resolve tough situations before they reach crisis points.
It’s easy to talk dollars, percentages, and new policies, but let’s not lose sight of what this really means.
And with more funding for transitional and supportive services, more veterans experiencing homelessness will have a path forward, not just a bed, but also long-term help with jobs, healthcare, and permanent housing.
At Compassionate Homes for Veterans, we’re thrilled to see momentum in Washington that matches the urgency we feel every day here on the ground. But policy change only goes so far; lasting solutions need action in local communities.
If you’re inspired and want to get involved, here are meaningful ways to make an impact:
Have questions or want to partner with us? Reach out to our team — we always love to talk to folks who share our commitment.
Final Thoughts
Nobody who has worn the uniform should worry about losing their home or living on the sidewalk. With the new VA Home Loan Reform, America has taken a big step forward, but together, we can go even further. Let’s keep building a future where every veteran has a safe place to call home.
For more info, resources, or to connect with support, visit Compassionate Homes for Veterans.
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