Trump's VA killed a home loan program. Vets are now losing their homes because of it

Key Points:

• Since May last year, over 10,000 veterans have lost their homes to foreclosure after the Trump administration abruptly ended a key VA home loan rescue program, marking the highest foreclosure rate for VA loans in a decade.
• The crisis began when the Biden administration prematurely shut down a pandemic mortgage forbearance program, forcing veterans to repay skipped payments in lump sums they could not afford, leading to widespread foreclosures.
• The VA's subsequent rescue program, VASP, helped thousands of vets refinance at low rates but was terminated by the Trump administration in May 2025, leaving many veterans with no affordable options and facing much higher mortgage payments.
• Currently, 90,000 veterans are at risk of foreclosure, and the VA plans to introduce a new program that allows missed payments to be added to the end of loans, but critics warn it may still offer vets worse terms than other homeowners and increase monthly payments.
• Veterans and advocates criticize the VA for mismanagement and insufficient support, highlighting cases like the Ledford family who lost their home despite eligibility for assistance, while the VA maintains it must balance aid with veterans' ability to make payments.