Veterans Lose Homes as VA Relief Ends and Housing Plans Stall

Source: Newsweek

Published May 02, 2026 at 05:00 AM EDT


Thousands of veterans are facing growing pressure in the housing market as foreclosures rise on VA-backed home loans and promised new housing for homeless former service members remains uncertain. More than 10,000 veterans have lost their homes since May 2025, when the Department of Veterans Affairs (VA) ended a major foreclosure prevention program, according to industry data cited by NPR.

At the same time, another 90,000 veterans are either behind on mortgage payments or already moving through the foreclosure process. The financial strain for some veterans comes as questions grow around a separate VA pledge to expand housing for homeless veterans in Los Angeles.

VA Foreclosure Program

VA-backed home loans are designed to make homeownership more accessible for veterans, active-duty service members and some surviving spouses. Rather than lending directly, the VA guarantees part of the mortgage issued by private lenders, allowing borrowers to access benefits such as no down payment, lower interest rates and no private mortgage insurance. But when borrowers fall behind, the system becomes far less forgiving.

The VA offered a COVID-era partial claim option between 2021 and 2022, helping struggling borrowers catch up on missed payments. A temporary solution followed through the Veterans Affairs Servicing Purchase program (VASP), which purchased delinquent loans from servicers and modified them at a 2.5 percent fixed rate. That program ended to new applicants on May 1, 2025, but those with loans approved before that date were unaffected. After VASP expired, many veterans had few realistic ways to avoid foreclosure.

Read more: https://www.newsweek.com/veterans-lose-homes-as-va-relief-ends-and-housing-plans-stall-11891543