H.R. 1815 Reform Act, Agent Fees & Foreclosure Prevention
New Bills That Could Reshape VA Loans in 2026
The VA Home Loan Program Reform Act (H.R. 1815) passed both chambers of Congress in 2026 and permanently allows Veterans to pay buyer’s agent fees with VA loan funds, creates a five-year Partial Claim Program to prevent foreclosures, and increases homeless Veteran housing funding to $344 million annually. These are the most significant VA loan reforms since the loan limit removal in 2020.
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Agent Fee Change
- Permanent policy: Veterans can now pay buyer’s agent commissions directly using VA loan funds — no longer at a disadvantage
- Competitive impact: Eliminates the barrier that caused some sellers to reject VA offers in tight markets
- Effective: Makes permanent the temporary policy VA introduced in 2025 after the NAR settlement
Partial Claim Program
- Foreclosure prevention: VA can purchase a portion of a delinquent loan to help Veterans avoid foreclosure and keep homes
- Five-year program: Replaces the terminated VASP program with a structured safety net through 2031
- 20,000+ affected: Designed to help the most seriously delinquent VA borrowers who exhausted other loss mitigation options
Homeless Veteran Funding
- Budget increase: Grant and Per Diem Program rises from $258M to $344M annually for 2026 fiscal years
- Transitional housing: Expanded support for housing services including environmental hazard-exposed Veterans
- Funding source: Partially funded through the Toxic Exposures Fund established under the PACT Act
Borrower Impact
- Market access: Agent fee change removes the #1 reason sellers rejected VA loan offers in competitive markets
- Safety net: Partial Claim gives delinquent borrowers a path to cure without losing their home or VA entitlement
- No new costs: Funding fee structure unchanged — reforms address access and protection, not loan pricing
Frequently Asked Questions
Can Veterans now pay their buyer’s agent commission?
What is the Partial Claim Program?
When do these changes take effect?
The Bottom Line Up Front
H.R. 1815 fixes two of the biggest problems in the VA loan program: the agent fee restriction that made Veterans less competitive in tight markets, and the lack of a foreclosure prevention tool after VASP was terminated. Both changes are now law (pending presidential signature), and neither adds new costs to borrowers.
These reforms matter because VA loans already have the strongest terms in the market — zero down, no PMI, competitive rates — but restrictive policies around agent fees and limited loss mitigation options created real barriers. H.R. 1815 removes those barriers.
Direct Payment of Buyer’s Agent Fees
Before this reform, VA loan rules prohibited Veterans from paying their buyer’s agent commission directly. In practice, this meant sellers had to cover the buyer’s agent fee — which made some sellers in competitive markets reluctant to accept VA offers. After the 2024 NAR settlement changed how agent commissions work nationwide, this restriction became even more problematic.
H.R. 1815 permanently allows Veterans to pay buyer’s agent fees using VA loan funds. This was temporarily permitted starting in 2025 through a VA policy update, but the Reform Act makes it permanent law.
What This Means for Buyers
- Level playing field: VA offers are now structurally identical to conventional offers regarding agent compensation — sellers have no reason to discriminate
- Competitive markets: Veterans in tight markets like California, Florida, and the DC metro area benefit most since seller resistance to VA offers was highest there
- Budget impact: Agent fees (typically 2.5–3% of purchase price) can be financed into the loan or paid from the buyer’s funds — both options are now permitted
- Seller concession unchanged: Sellers can still contribute up to 4% of the purchase price toward the buyer’s closing costs, separate from agent fees
Partial Claim Program: Foreclosure Prevention
The VA Servicing Purchase (VASP) program was terminated in April 2025, leaving a gap in foreclosure prevention for VA borrowers. With approximately 90,000 VA loans seriously delinquent, the need for a replacement was urgent.
H.R. 1815 creates a five-year Partial Claim Program modeled after similar FHA and USDA programs. Under this provision, the VA can purchase a portion of a delinquent VA loan, allowing the borrower to resume payments on the remaining balance and avoid foreclosure.
How It Works
- VA purchases delinquent amount: The VA buys the past-due portion of the loan from the servicer, bringing the borrower current
- Borrower resumes payments: The Veteran continues making normal mortgage payments on the remaining loan balance
- Liability clause: If the borrower subsequently defaults after a partial claim, they are liable for the VA’s loss on the purchased portion
- Five-year authorization: The program runs through 2031, with CBO estimating costs of $146 million funded partly through the Toxic Exposures Fund
This is critical because VA loans previously had fewer loss mitigation tools than FHA or USDA loans. The Partial Claim Program closes that gap and gives servicers a viable alternative to foreclosure for borrowers who’ve exhausted standard forbearance and modification options.
Increased Funding for Homeless Veterans
The Reform Act raises the annual funding cap for the Grant and Per Diem Program from $258 million to $344 million for 2026 fiscal years. This program supports transitional housing, services, and operational costs for organizations that serve homeless Veterans.
- Expanded coverage: Additional funding targets Veterans exposed to environmental hazards, including those covered under the PACT Act.
- Service providers: Organizations providing transitional housing, case management, job training, and mental health services receive increased grant allocations.
- Funding mechanism: The $146 million estimated cost is partly funded through the Toxic Exposures Fund, avoiding new appropriations.
What Hasn’t Changed
These reforms address access and protection — not loan pricing or structure. The core VA loan program remains the same.
| Feature | Status |
|---|---|
| Down payment | Still zero with full entitlement |
| PMI | Still none required |
| Loan limits | Still no cap for full-entitlement borrowers |
| Funding fee | Unchanged (0.5%–3.3% based on usage and down payment) |
| Seller concessions | Still up to 4% of purchase price |
| Occupancy requirement | Still primary residence only |
The Bottom Line
H.R. 1815 removes two major barriers — the agent fee restriction and the lack of a foreclosure prevention tool — without adding new costs to VA borrowers. Veterans can now compete on equal footing in any housing market and have a safety net if financial hardship threatens their home.
If you’re buying, the agent fee change means your VA offer is now as clean as any conventional offer. If you’re struggling with payments, the Partial Claim Program gives you a path to keep your home. Both changes are effective once the President signs the bill into law.
