The VA Home Loan Reform Act, signed in 2025, creates a permanent Partial Claim Program. Learn how Veterans can now get help with delinquent VA loans, avoid foreclosure, and what it means for 2026 homebuyers. VA Home Loan Reform Act 2026: New Partial Claim Program Gives Veterans a Second Chance. On July 30, 2025, President Trump signed the VA Home Loan Reform Act (H.R. 1815) into law. This bipartisan bill modernizes the VA home loan program and introduces powerful new tools to help Veterans stay in their homes during financial hardship. What Is the VA Home Loan Reform Act? The law does two major things:

  1. Establishes a Permanent Partial Claim Program
    The VA can now pay a portion of a delinquent VA loan (up to 25% of the unpaid balance) to bring the loan current.
    • No monthly payments on the partial claim
    • No interest accrues on the partial claim
    • The claim is repaid only when the home is sold, refinanced, or the loan is paid off
  2. Replaces the Temporary VASP Program
    This new program gives Veterans more stable, long-term foreclosure prevention options similar to those available with FHA and conventional loans.

Who Can Benefit?

  • Veterans currently behind on their VA mortgage
  • Veterans at imminent risk of foreclosure
  • Borrowers who exhausted forbearance options after COVID or other hardships

This is especially important right now — nearly 90,000 VA loans are seriously delinquent, and over 33,000 are already in foreclosure. What This Means for Veterans in 2026: If you’re struggling with your VA loan payments, there is now real hope. The new Partial Claim Program can help you catch up without losing your home.

Recommended Action Steps for Veterans

  1. Call or log into your servicer’s website today and say:
    “I would like to be evaluated for the new VA Partial Claim Program under the VA Home Loan Reform Act.”
  2. If you don’t get clear help within 1–2 business days, call the VA at 877-827-3702.