VASP Ends May 1, 2026. What Veterans Behind on Their Mortgage Need to Know.
Jeanette Spain
21-year Air Force veteran. Central Texas Realtor.
The short answer
The VA Servicing Purchase program stopped accepting new applicants on May 1, 2026. Veterans already enrolled continue through the program. Veterans who fall behind now have fewer restructuring options and need to act faster.
What VASP was
The VA Servicing Purchase program allowed the VA to buy delinquent VA loans from servicers, modify them to a 2.5% interest rate, and extend the term to make payments manageable. It was designed specifically for veterans who went into forbearance during COVID-era hardships and couldn't resume regular payments when forbearance ended. For veterans already enrolled, the program continues — it does not end for existing participants.
What comes next for veterans falling behind now
- Call your servicer immediately — most have loss mitigation departments with VA-specific workout options
- Request a repayment plan if you're 1–3 months behind and can resume payments
- Ask about a loan modification if the delinquency is more significant
- Consider a VA compromise sale (short sale with VA approval) if there is no equity and you cannot afford the payments
- If there is equity, selling before foreclosure preserves more options and your credit
VA Loan Guaranty Service
If you are behind and unsure where to start, call the VA's Loan Guaranty Service at 877-827-3702. They will connect you with a housing counselor who works these situations every day. It is free and there is no sales component.
If you are behind and considering whether to hold or sell
The most important number is what the house is worth now versus what you owe. In most Central Texas markets, values have held enough that selling beats losing the property. Foreclosure takes the equity and damages the credit record for seven years. A properly handled sale — even a short sale with VA approval — is almost always the better outcome. If you're in this situation, call me before you call a foreclosure attorney. I can help you understand what the property is worth and what your options look like.
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