The U.S. Department of Veterans Affairs (VA) has officially ended its VA Servicing Purchase (VASP) program as of May 1, 2025. This initiative had provided critical mortgage relief to thousands of veterans, helping them avoid foreclosure and maintain homeownership. Its sudden end now leaves tens of thousands in financial limbo with limited alternatives.
VASP was launched to fill a gap in mortgage relief options for veterans who had fallen behind on their VA-backed home loans. The program allowed the VA to purchase delinquent mortgages and restructure them into low-interest loans — often the only affordable path forward, especially with today’s mortgage rates hovering near 7%.
Housing advocates and veterans’ organizations are sounding the alarm. Without VASP, many veterans and their families could face the devastating possibility of losing their homes. Calls are growing louder for Congress to step in with a legislative replacement. Meanwhile, the VA has stopped accepting new applicants and cited the lack of congressional authority as the reason for ending the program.
The timing couldn’t be worse. Nearly 90,000 VA loans are seriously delinquent, and about 33,000 are already in the foreclosure process. For many, VASP was a last line of defense.
The program’s termination follows a previous wave of mortgage relief rollbacks that left thousands of veterans scrambling. After public outcry and a temporary foreclosure pause, VASP was introduced to stem the crisis — but now it too is gone.
Veterans like Kevin Conlon, who completed two combat tours in Iraq and has owned his upstate New York home for over a decade, now face an uncertain future. “Without VASP or immediate access to something similar, many of us will be forced to sell or lose our homes,” he said.
With no clear replacement yet in place, the pressure is on lawmakers to act. For now, thousands of veterans — many of whom served the country faithfully — are left hoping for help that hasn’t arrived.
