What the 2025 VA Home Loan Reform Act Means for Veterans Buying or Saving a Home
July 30, 2025
As a real estate broker committed to helping our nation’s veterans achieve homeownership, I’m excited to share important updates from Washington that could make a meaningful impact in today’s housing market. The newly passed VA Home Loan Program Reform Act of 2025 introduces long-awaited improvements that strengthen protections for veteran borrowers, expand their purchasing power, and modernize how we as agents support them through the buying process.
What Is the VA Home Loan Program Reform Act?
Signed into law in July 2025, the VA Home Loan Program Reform Act updates key components of the Department of Veterans Affairs’ (VA) home loan system. It addresses some of the biggest challenges veterans have faced especially in today’s competitive market, where access to strong buyer representation and financial flexibility is more critical than ever.
Key Provisions of the Reform
1. New Partial Claim Program to Prevent Foreclosure
One of the most impactful elements of this legislation is the creation of a permanent Partial Claim Program, designed to help struggling veteran homeowners avoid foreclosure. Much like similar programs from FHA and USDA, this tool allows the VA to cover a portion of a borrower’s delinquent payments through a no-interest, deferred loan. This gives veterans time and space to get back on their feet without losing their homes.
This is a critical step forward, especially as many COVID-era protections have now expired. It shows the VA’s renewed commitment to keeping veterans in their homes.
2. Veteran-Friendly Buyer Agent Compensation
For real estate professionals and buyers alike, one of the most welcome changes is the clarification that veterans can now pay their buyer’s agent directly. This is especially important given recent changes in commission practices. Many veterans were previously disadvantaged when sellers refused to cover buyer agent commissions, which are traditionally built into the sale. This reform helps level the playing field ensuring veterans can secure expert representation without being shut out of competitive offers.
3. Expanded Funding for Homeless Veterans
The Act also boosts funding for transitional housing services under the VA’s Grant and Per Diem Program. For real estate professionals working with non-profits or agencies serving homeless or at-risk veterans, this opens new opportunities for partnership and impact.
What It Means for Buyers and Sellers
For Buyers
Veterans now have more tools to avoid foreclosure, better access to agent support, and a clearer path to securing a home even in fast-moving markets. As a broker, I recommend all veteran buyers ensure their lender is up-to-date on these changes and explore their full benefits under the updated VA loan structure.
For Sellers
Homes that are VA-financing eligible are now even more attractive to qualified veteran buyers. These buyers come pre-approved with zero down payment requirements and the backing of the federal government which is a powerful combination in uncertain markets. With the ability to pay buyer’s agents directly, veterans are now on equal footing with conventional and cash buyers.
Final Thoughts
The VA Home Loan Program Reform Act is a welcome step toward equity, stability, and access for veteran homebuyers. As real estate professionals, it’s our responsibility to stay informed and help veterans navigate these new tools confidently and efficiently. Whether you’re a veteran looking to buy, a seller wanting to market your home to qualified buyers, or an agent seeking to support your veteran clients then these changes open new doors.
If you have questions about how these reforms impact your situation or want to explore VA loan options further, I’m always here to refer you to a qualified professional.
Contact me here to learn more.
Veterans have served our country with honor and this new law helps us serve them better in return.