If you’re a veteran, active-duty service member, or military family using a VA loan—or considering one—you need to know about a major new law just signed into effect: the VA Home Loan Program Reform Act of 2025. This change could be the lifeline many veteran homeowners need in today’s market.

Let’s break it all down in simple, real-world terms so you know exactly what this means for you or someone you love.

What Is the VA Home Loan Program Reform Act of 2025?

In July 2025, President Trump signed H.R. 1815, known as the VA Home Loan Program Reform Act, into law. This bipartisan bill is a game-changer for the VA home loan system, which currently serves over 3.7 million veterans across the country.

Here’s what the law does:

• Creates a Partial Claim Program at the VA, similar to what FHA and USDA already offer
• Offers a second-chance option for veteran homeowners who are behind on their mortgage payments
• Strengthens homelessness prevention efforts through expanded VA funding
• Provides tools for mortgage lenders to work more effectively with VA borrowers in financial hardship

Why This Matters: Help for Veterans Behind on Payments

Right now, nearly 70,000 veterans are more than 90 days late on their mortgage payments. Before this law, there were limited options for VA borrowers to catch up without refinancing or risking foreclosure.

The Partial Claim Program fixes that.

If you’re a veteran who’s fallen behind—due to job loss, illness, or inflation—this new law allows the VA to step in, pay the missed payments to your lender on your behalf, and structure an affordable repayment plan. This means you may now be able to stay in your home without refinancing or ruining your credit.

What Is a Partial Claim Program?

Think of it like a safety net.

Instead of going into foreclosure, the VA will pay off your past-due balance, and then you’ll repay the VA through a second lien (with no interest and no monthly payment until you refinance, sell, or pay off the loan).

This tool already exists in other federal loan programs, but now VA borrowers get the same protection.

Backed by Trusted Organizations

This bill isn’t just a government idea—it’s backed by major housing and veteran organizations like:

• The Mortgage Bankers Association (MBA)
• National Association of Realtors (NAR)
• Veterans of Foreign Wars (VFW)
• The American Legion
• National Coalition for Homeless Veterans (NCHV)

When this many voices agree, you know it’s meaningful.

Who Qualifies for Help?

If you currently have a VA-backed mortgage and:

• Are at least 30 days behind on payments (especially over 90 days)
• Experienced a hardship like job loss, medical expenses, or other financial setbacks
• Want to avoid foreclosure and stay in your home

…then this program could give you the support and time you need to recover and protect your homeownership.

How to Get Help

You don’t need to navigate this alone. The Sherry Riano Team has helped thousands of veterans across the Southeast buy and keep their homes through VA loans—and we’re here to help guide you through this new program too.

Here’s what to do next:

1. Check your VA loan status – Are you current, behind, or at risk?
2. Book a free consultation with our team
3. We’ll assess your options, contact your servicer if needed, and guide you through next steps

➡️ Click here to schedule your free mortgage review

What This Means for Our Military Families

At The Sherry Riano Team, we believe homeownership should never be taken away because of temporary setbacks—especially not for those who’ve served our country.

This new law is a powerful step toward protecting veteran homeowners, modernizing VA loan support, and preventing homelessness.

If you’re unsure whether this applies to you or someone you know, we’re happy to walk you through it with zero pressure.

You served us—now let us serve you.

VA Loans Are Still One of the Best Loan Programs Available

Let’s not forget—VA loans still offer:

• $0 down payment
• No private mortgage insurance (PMI)
• Competitive interest rates
• And now, more protection when life happens

Want to learn more about VA home loans or see if you qualify? Start here or call us directly at (919) 234-7415.

Want to share this info with a veteran? Send them this article or tag them on our Instagram or Facebook.

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