Trump Signs New Law Helping Veterans Avoid Foreclosure

Articles | July 30, 2025 | by Catholics for Catholics

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The measure seeks to prevent veterans from losing their homes.

By Catholics for Catholics

Hoping to help military veterans remain as the owners of their houses, President Donald Trump signed a program Wednesday to help prevent them from losing their homes to foreclosure.

The president signed the VA Home Loan Program Reform Act. The program, which will be applied by the Department of Veterans Affairs, will permit veterans who are late on mortgage payments to attach those payments to the tail end of their loans. 

“This bipartisan and bicameral legislation will assist veterans who are facing financial hardships and provide VA with a tool to better help veterans stay in their homes and avoid foreclosure. The VA Home Loan Program provides one of the best benefits VA has to offer, and has helped veterans and their families build home equity since its inception in 1944,” House and Senate Committee on Veterans’ Affairs leaders said in a joint statement on July 16. 

🚨 BREAKING: President Trump has just signed the VA Home Loan Reform Act into law, a HUGE step in preventing and fixing veteran homelessness

Vets will now how a foreclosure safety net to prevent them from losing their homes when they’re in a tough spot.

It also gives an… pic.twitter.com/x75yAqAwDP

— Nick Sortor (@nicksortor) July 30, 2025

According to Fox News, Trump’s novel claims program wants to replace the Veterans Affairs Servicing Purchase (VASP) program created in 2024 under the Biden administration. The Trump administration forbade that program in May.

Under the Biden’s administration VASP program, the VA bought up negligent VA loans from mortgage servicers, adjusted the loans and then offered borrowers a fixed 2.5% interest rate for the duration of the loan. 

Republicans did not view the VASP program well, saying it was established without the input from Congress, saying it put in peril the whole VA home loan guarantee program and would be costly for taxpayers. Altogether, the VA estimated that it purchased more than 17,000 home loans totaling more than $5.48 billion dollars under VASP. 

Fox News reported that the House passed its version of the VA Home Loan Program Reform Act in May, while the Senate passed its version of the measure in July.