What Veterans and Their Families Need to Know About Housing Assistance: Federal Updates and State Resources
- keepourvetshoused
- Aug 9
- 3 min read
Veteran families facing foreclosure or housing instability are navigating a critical moment. Several important federal programs have changed recently, and states are responding with varying levels of support. Here’s a clear update on what’s happening at the federal level, how states are stepping in, and what you can do to protect your home and your family.
What’s Happening at the Federal Level?
1. The End of VASP — A Critical Program That Helped Veterans Avoid Foreclosure
The Veterans Affairs Servicing Purchase (VASP) program was an emergency foreclosure-avoidance tool for veterans struggling to keep their homes. Unfortunately, VASP ended on May 1, 2025, putting an estimated 58,000 veterans at greater risk of losing their homes.
Before VASP, there was the older “partial-claim” option, which ended in 2022. For a period, veterans lacked a federal program specifically designed to help them avoid foreclosure by managing mortgage arrears.
2. New Hope: The VA Home Loan Program Reform Act
Good news came on July 30, 2025, when the VA Home Loan Program Reform Act was signed into law. This legislation reinstates a permanent partial-claim program that allows veterans to add missed mortgage payments to the end of their loan — at 0% interest.
This helps veterans bring their mortgages current without facing foreclosure, offering a crucial lifeline to many families.
3. Homeowner Assistance Fund (HAF)
As part of the American Rescue Plan, the Homeowner Assistance Fund provides nearly $10 billion to states to assist homeowners at risk of foreclosure — including veterans.
Veterans can use HAF alongside VA retention options. When approved, loan servicers must suspend foreclosure and apply these funds toward outstanding mortgage arrears.
In California, the HAF program is being expanded specifically to reduce or eliminate veterans’ partial-claim liens or loan deferrals, making it easier for veterans to stabilize their housing.
What Are Individual States Doing?
While many states administer HAF programs, veteran-specific foreclosure prevention efforts vary widely:
California stands out for proactively expanding HAF to support veterans with partial-claim deficits.
Other states offer HAF generally, but it’s unclear how many prioritize veterans specifically.
States with strong veteran support agencies (Illinois, Maryland, Michigan, Massachusetts, North Carolina, Arizona, and others) often provide emergency financial assistance, counseling, and advocacy. However, most of these programs focus broadly on veteran welfare and are not foreclosure-specific.
Other Vital Programs: Supportive Services for Veteran Families (SSVF)
The SSVF program is a federal initiative available nationwide to help veterans facing housing crises. While it focuses more on preventing eviction, securing new housing, or rehousing, it’s an essential resource if foreclosure or eviction becomes imminent.
What You Can Do Now: Next Steps for Veterans and Advocates
If you or a veteran you know is at risk of losing a home, here’s what to do next:
Contact your state’s HAF administrator. Ask about available assistance programs and whether veterans are prioritized.
Call VA loan technicians at 877-827-3702. They can guide you on applying the new partial-claim program or using HAF funds.
Explore Supportive Services for Veteran Families (SSVF) if eviction is a risk.
Reach out to your State Department of Veterans Affairs or your local Veterans Service Officer to learn about emergency housing relief and financial aid programs in your area.
Standing Together to Keep Veteran Families Housed
The landscape of housing assistance for veterans is evolving, but challenges remain. Programs like the VA Home Loan Program Reform Act and HAF offer hope, while state efforts vary and sometimes fall short.
At the KOVH Foundation, we are committed to raising awareness, advocating for stronger protections, and supporting veteran families at risk of foreclosure.
If you’re facing housing difficulties or want to help spread the word, contact us and join the movement to keep our veterans housed and secure.
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