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

The shutdown ended a rescue plan that had helped 33,000 borrowers, while 90,000 more veterans are now behind or facing foreclosure.

  • Nearly a year after the Trump Administration abruptly terminated the VASP program on May 1, 2025, more than 10,000 veterans have lost their homes to foreclosure, according to industry data.
  • The crisis originated when the Biden administration ended a pandemic-era assistance program in October 2022, forcing veterans to pay back skipped mortgage payments in one lump sum; VASP later addressed this before Trump shut it down.
  • Veterans unable to enroll in VASP before its closure now face modified loans with higher interest rates; Army veteran Jon Henry reports monthly payments increased $380, while others receive $3,500 offers to vacate.
  • Despite warnings from the Mortgage Bankers Association that shutting down the program would be a disaster, another 90,000 veterans are currently heading toward foreclosure, marking the highest pace of defaults in a decade.
  • Veterans Affairs officials continue developing a replacement program, yet many families remain without a safety net as the cost of living intensifies and the risk of losing their homes persists.
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Trump's VA killed a home loan program. Vets are now losing their homes because of it

Foreclosures on VA loans are at their highest level in a decade. VA has a fix but it is months away and could still leave vets worse off than most other homeowners.

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npr broke the news in Washington, United States on Thursday, April 2, 2026.
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