President Trump just signed the VA Home Loan Reform Act into law, enacting several provisions designed to support veteran homeownership, including making permanent the suspension of the VA’s prohibition on buyer-paid agent commissions. 

The law, which unanimously passed both houses of Congress, also allows the VA to cover missed mortgage payments for borrowers in serious delinquency, thereby allowing them to get up to date on their mortgages without refinancing or altering the terms of their original loans. 

This permanent partial claim program brings VA loans into alignment with other federal loans, such as those from the FHA and USDA, which already have partial claim programs. It also replaces a Biden Administration program, the VA Servicer Purchasing Program (VASP), which the VA closed on May 1, leaving thousands of delinquent veteran borrowers at risk of foreclosure. 

Until a temporary suspension in 2023, the VA had a rule prohibiting veteran borrowers from covering buyer-agent commissions, which put them at a disadvantage in competitive markets when sellers refused to cover the buyer agent’s fee.  

“Veterans deserve the same shot at homeownership as every other buyer, and NAR is grateful that the president has signed this measure into law,” said Shannon McGahn, National Association of REALTORS® executive vice president and chief advocacy officer. “NAR has maintained unwavering support for this bill, giving veterans equal footing in the housing market and allowing veterans and active-duty service members the same advantages as other buyers in a competitive real estate market.” 

Finally, the law boosts funding for the VA’s Grant and Per Diem Program, which supports community groups that assist veterans experiencing homelessness.