The VA loan benefit is ever-evolving, and the rules, regulations and requirements for these loans are updated often as the needs of Veterans and military service members change.

This year was no different, and since the start of 2025, several VA loan updates and developments have been rolled out. Some make it easier to qualify for the program, while others change rules regarding fees, foreclosures and more.

Whether you're actively looking to buy, refinance or just stay informed about the VA loan program, this year's changes could impact your journey. Here's what you need to know.

90-Day Service Requirement for Active Duty, Guard & Reserve

This first set of changes is big — and they make it easier for many active-duty service members and National Guard/Reserve men and women to buy a home.

To start, qualifying for a VA loan as an active-duty service member no longer requires 181 days of peacetime service or 90 days of wartime service. Instead, a current service member can apply with just 90 continuous days of service, regardless of peace or wartime.

This year's changes also expanded what qualifies as active duty for National Guard and Reserve members, allowing certain training and annual duty periods to count toward the loan program's 90-day requirement. Additionally, only 30 days of those 90 must be consecutively served.

In both cases, the changes expand who can use the VA loan benefit and when it becomes available to current military members. For many service men and women, it may mean buying a home much sooner than was previously possible.

VASP Program Ends — What That Means for Veterans

In mid-2024, the government launched the Veterans Affairs Servicing Purchasing program (VASP) in an effort to help reduce foreclosures among the Veteran population. Under the program, the VA was able to purchase struggling VA borrowers' mortgage loans and then provide low-rate restructuring of those loans that reduced borrower costs.

Unfortunately, the program expired on May 1, 2025, and the VA has now stopped accepting VASP applications, essentially taking away a much-needed safety net for Veteran homeowners.

This means Veterans face a higher risk of foreclosure than they did a year ago and that careful budgeting and payment management are critical. If you worry you may be unable to make your payments, it's important to contact your lender as quickly as possible. You may be able to request forbearance or deference (essentially payment pauses) or apply for an Interest Rate Reduction Refinance Loan (IRRRL) to lower your rate and payment.

According to the Mortgage Bankers Association, the percentage of VA loans currently in some part of the foreclosure process is at its highest point since the end of 2019.

VA Home Loan Program Reform Act (H.R. 1815) – New Relief & Fairness Tools

Not all support systems for struggling VA borrowers are gone. In fact, on July 30, 2025, the VA Home Loan Program Reform Act was signed into law, activating new options for VA loan borrowers who are having trouble making payments or finding housing.

Here are some features the law included:

A Partial Claim Foreclosure Prevention Program: This allows the Department of Veterans Affairs to cover between 25% and 30% of a borrower's loan balance if they are facing default. This balance is due at the end of the loan term but requires no interest payments from the borrower.

Funding for Homelessness Prevention: The cap on homelessness assistance that can be provided through the VA was increased to $344 million for the years 2025 and 2026 and $257 million for every year after that.

The new law bridges the gap left behind by the expiration of the VASP program and gives added support to Veterans who might be struggling financially. Mike Bost, chairman of the House Committee on Veterans Affairs, said the new law will "modernize the VA Home Loan to meet Veterans' needs and reduce the risk of Veteran homelessness."

Other Recent VA Loan Developments

While not passed in 2025, there are a few other VA loan developments you might want to note if you're considering applying for one in the near future.

These include:

Changes to Agent Compensation: Previously, sellers were typically expected to pay the commission fee for a buyer's real estate agent. As of Aug. 10, 2024, that expectation is no longer assumed and Veterans may now need to pay these fees as part of their closing costs.

It's important to speak with your realtor as this is a negotiated term as part of purchasing a home. Some sellers will be willing and able to pay for the buyer's agency, some will not. This is a result of a lawsuit involving the National Association of Realtors.

Allowances for Less-Than-Honorable Discharges: Prior to June 25, 2024, Veterans needed a character of discharge or service that was honorable, under honorable or general to qualify for a VA loan. The VA now allows for other discharge conditions under what it deems "compelling circumstances."

Addition of a 40-Year Loan Modification: In April 2024, the VA enacted a 40-year loan modification for struggling VA borrowers. This allows Veterans to potentially modify their loan terms and spread their remaining balance out over 40 years — or 480 months. This can significantly reduce monthly costs and increase affordability.

Over the last few years, there have been many changes to the VA loan program. The bottom line is that eligibility requirements have expanded, allowing more Veterans and service members to take advantage of their VA loan benefit, and protections against foreclosure, delinquency and homelessness have shifted, making staying on top of payments — and communicating with your lender — more critical than ever.

Additional changes are likely to come for the VA loan benefit in the future. To stay up to date on the latest developments, check the VA’s Circulars website regularly. This is where the department posts news updates regarding the VA loan program and its requirements.