Trump's VA killed a home loan program. Vets are now losing their homes because of it (April 6, 2026 )
Updated April 6, 2026 — Foreclosures on VA-backed loans have reached a 10-year high, with over 10,000 veterans losing their homes since May 2025 and another 90,000 currently at risk. This spike followed the Trump administration’s decision to abruptly shut down the Veterans Affairs Servicing Purchase (VASP) program on May 1, 2025, despite warnings from the mortgage industry that doing so without a replacement would be a "disaster". VASP had previously saved more than 33,000 veterans by providing low-cost, 2.5% interest rate mortgages to those who had fallen behind.
The roots of the crisis trace back to the Biden administration’s sudden termination of a pandemic-era assistance program, which left many veterans facing unaffordable lump-sum payments for skipped mortgage installments. While the VA initially halted foreclosures for a year to roll out VASP, the program’s early termination left many veterans "stranded" in a bureaucratic quagmire.
Currently, veterans have fewer protections than non-veteran homeowners; while other government-backed loans offer emergency options that maintain original interest rates, veterans are often forced into loan modifications that can increase monthly payments by hundreds of dollars. Although a new program is in development, it is still months away and may still require some veterans to accept monthly payment increases of up to 15%.
| https://www.npr.org/2026/04/02/nx-s1-5750814/veterans-mortgages-foreclosure-va-rescue |