H.R. 1815: Buyer Agent Pay, Partial Claims, and Foreclosure Prevention
VA Home Loan Reform Act: What Changed for Veterans
Congress.gov — H.R. 1815 Bill Text
CBO — H.R. 1815 Cost Estimate
VA Housing Assistance — Home Loans
The VA Home Loan Reform Act (H.R. 1815) permanently allows Veterans to pay buyer-agent commissions, creates a partial claim program covering up to 25-30% of delinquent loan balances interest-free, and increases Grant and Per Diem Program funding to $344 million. The Act passed unanimously in both chambers and addresses the two biggest friction points in VA lending: market competitiveness and foreclosure prevention.
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Buyer Agent Pay
- Made permanent: Veterans can now pay buyer-agent commissions directly at closing — no longer a temporary policy.
- Market access: Eliminates the competitive disadvantage VA buyers faced after the NAR settlement changed commission rules.
- Seller option preserved: Sellers can still voluntarily pay the buyer-agent fee outside the 4% concession cap.
Partial Claim Program
- Coverage limit: VA can purchase up to 25% of unpaid principal balance for delinquent loans, 30% for COVID-impacted.
- Interest-free repayment: Veterans repay the VA-covered portion over 5 years with zero interest charges.
- Foreclosure prevention: Replaces the expired VASP program with a more targeted loss mitigation tool.
Homeless Veteran Funding
- GPD increase: Grant and Per Diem Program annual cap raised from $258 million to $344 million through 2026.
- Transitional housing: Additional funding supports organizations providing housing and services to homeless Veterans.
- CBO estimate: This provision increases spending by approximately $146 million over the 2025-2035 period.
Budget Impact
- Net savings: CBO projects $147 million in reduced direct federal spending through 2035 from the partial claim program.
- Bipartisan passage: Passed unanimously in both the House and Senate with no opposition votes in either chamber.
- Signed into law: H.R. 1815 was signed by the President after passing through both chambers of Congress in 2025.
Frequently Asked Questions
What is the VA Home Loan Reform Act?
Does this change how I buy a home with a VA loan?
What is the partial claim program?
The Bottom Line Up Front
The VA Home Loan Reform Act (H.R. 1815) addresses the two biggest operational gaps in VA lending: buyer-agent compensation and foreclosure prevention. It makes permanent the temporary policy allowing Veterans to pay their own real estate agents — removing a competitive disadvantage that cost VA buyers deals in tight markets. It also creates a partial claim program that lets the VA cover up to 25-30% of a delinquent loan balance interest-free, giving struggling borrowers a structured path to keep their homes.
The Act passed unanimously in both the House and Senate, reflecting broad bipartisan agreement that these changes were overdue. For Veterans currently buying or refinancing, the practical impact is straightforward: the buyer-agent compensation rules that took effect in August 2024 under VA Circular 26-24-14 are now permanent law. For Veterans facing financial hardship, the partial claim program replaces the expired Veterans Affairs Servicing Purchase (VASP) program with a more targeted and cost-efficient foreclosure alternative.
- Buyer-agent compensation is now permanent — Veterans can pay their real estate agent at closing, and the fee does not count toward the 4% seller concession cap
- The partial claim program covers up to 25% of unpaid principal (30% for COVID-era delinquencies) with interest-free repayment over 5 years
- VA must prescribe formal loss mitigation procedures, aligning VA loan servicing standards with FHA and USDA foreclosure prevention frameworks
- Grant and Per Diem Program funding increases from $258 million to $344 million annually to support transitional housing for homeless Veterans
- CBO projects the Act reduces direct federal spending by $147 million through 2035 — the partial claim program is cheaper than foreclosure losses
What Are The Key Provisions Of The Act?
H.R. 1815 contains four major provisions, each addressing a different gap in the VA loan program. The buyer-agent and partial claim provisions have the most direct impact on individual borrowers.
- Section 2 permanently authorizes Veteran-paid buyer-agent compensation — codifying the temporary policy from VA Circular 26-24-14 that took effect August 10, 2024
- Section 3 creates a 5-year partial claim program allowing the VA to purchase a portion of delinquent loan balances to prevent foreclosure — replacing the expired VASP program
- Section 4 requires the VA to prescribe loss mitigation procedures that lenders must follow before initiating foreclosure proceedings on VA-backed loans
- Section 5 raises the Grant and Per Diem Program annual authorization from $258 million to $344 million through FY2026, with hazardous exposure funding from the Toxic Exposures Fund
How Does The Buyer Agent Provision Work?
Before this Act, VA regulations classified buyer-agent commissions as non-allowable charges — meaning Veterans could not pay them at all. The temporary fix through Circular 26-24-14 allowed it starting August 2024, but temporary rules create uncertainty for lenders and agents. H.R. 1815 makes this permanent, giving all parties confidence that the rule will not expire.
The practical mechanics remain the same as under the circular: fees must be reasonable and customary for the local market, a written buyer-broker agreement must be in the loan file, and the fee cannot be financed into the loan. Sellers can still pay the buyer-agent fee voluntarily, and when they do, it falls outside the 4% seller concession cap.
The permanent nature of this provision means lenders and real estate agents no longer need to wonder whether the rule will be extended or revoked. This removes a layer of uncertainty that was causing some agents to avoid VA buyers — with permanent law backing the compensation structure, VA buyers should see improved agent willingness to work with them.
How Does The Partial Claim Program Work?
The partial claim program targets Veterans who are seriously delinquent on their VA-backed mortgage. Instead of proceeding to foreclosure, the VA can purchase a portion of the unpaid balance — up to 25% of the outstanding principal, or 30% for loans that became delinquent during the COVID-19 period. The Veteran then repays the VA-covered amount over 5 years with no interest.
This replaces the VASP (Veterans Affairs Servicing Purchase) program, which the VA used during the COVID era to buy delinquent loans outright. The partial claim approach is more targeted — it covers only the delinquent portion rather than purchasing the entire loan, which the Congressional Budget Office estimates will save $147 million in direct federal spending through 2035.
- The VA purchases the delinquent portion of the loan (up to 25-30% of unpaid principal) and holds it as a subordinate claim against the property
- The Veteran makes interest-free payments to the VA over a 5-year repayment period on the purchased amount while resuming regular mortgage payments to the servicer
- This program is available for Veterans who are seriously delinquent but demonstrate the ability to resume regular payments — it is not a forgiveness program
- The CBO estimates approximately 20,000 seriously delinquent VA borrowers could benefit from this program in its initial years
Process Watchpoint
If you are behind on your VA mortgage payments, contact your loan servicer immediately — do not wait for foreclosure proceedings to begin. The partial claim program requires the servicer to evaluate you for loss mitigation options before initiating foreclosure. The earlier you engage, the more options remain available. You can also call the VA Regional Loan Center at 877-827-3702 for direct assistance.
What Does This Mean For Current VA Borrowers?
For Veterans currently buying: the market access improvement is already in effect. The Act simply ensures it remains permanent. Continue negotiating for seller-paid agent compensation first, and budget for buyer-paid as a fallback.
For Veterans currently making mortgage payments: the partial claim program provides a new safety net if financial hardship hits. Unlike the expired VASP program, partial claims are a targeted intervention — they cover the delinquent portion, not the entire loan — making them more efficient for both the borrower and the VA.
For Veterans facing homelessness: the GPD funding increase to $344 million supports the network of community organizations providing transitional housing and supportive services. Contact the National Call Center for Homeless Veterans at 877-424-3838 to connect with local providers.
- Buyers: the buyer-agent provision is permanent law — you have full authority to pay your agent at closing on any VA purchase transaction going forward
- Borrowers in hardship: contact your servicer before you fall further behind — the partial claim program requires the servicer to evaluate loss mitigation before foreclosure
- The VA must publish implementing regulations for the partial claim program — monitor VA.gov for specific program guidelines and servicer participation requirements
- Lenders now have clearer servicing standards aligned with FHA and USDA loss mitigation frameworks — reducing inconsistency in how different servicers handle VA loan defaults
The Bottom Line
The VA Home Loan Reform Act permanently resolves the buyer-agent compensation issue and creates a structured foreclosure prevention tool that is more efficient than the expired VASP program. For buyers, the competitive playing field is now level by law rather than temporary circular. For borrowers in hardship, the partial claim program offers an interest-free path to catch up without losing their home. Both provisions address real operational gaps that have cost Veterans deals and homes.
If you are buying, the practical advice remains the same: negotiate for seller-paid agent compensation first, budget cash for buyer-paid as backup, and get a written agreement in the loan file. If you are struggling with payments, contact your servicer immediately and reference the partial claim program. Early engagement gives you the most options before the file reaches a foreclosure track.
Frequently Asked Questions
What is H.R. 1815?
H.R. 1815 is the VA Home Loan Reform Act, a law that permanently authorizes Veteran-paid buyer-agent compensation, creates a partial claim foreclosure prevention program, prescribes loss mitigation procedures, and increases homeless Veteran housing funding.
Does the buyer-agent provision change how VA loans work?
It makes permanent what was previously a temporary policy. The mechanics are the same — fees must be reasonable, a buyer-broker agreement is required, and the fee cannot be financed. The difference is legal permanence instead of a temporary VA circular.
What is the partial claim program?
A foreclosure prevention tool where the VA purchases up to 25% of a delinquent loan’s unpaid principal (30% for COVID-impacted). The Veteran repays the VA over 5 years at zero interest while resuming regular mortgage payments.
Does this replace the VASP program?
Yes. The partial claim program replaces the expired Veterans Affairs Servicing Purchase (VASP) program with a more targeted approach that covers only the delinquent portion rather than purchasing the entire loan.
How much does the GPD funding increase?
The Grant and Per Diem Program annual authorization increases from $258 million to $344 million through FY2026. This supports community organizations providing transitional housing and services to homeless Veterans.
What should I do if I’m behind on my VA mortgage?
Contact your loan servicer immediately. The Act requires servicers to evaluate you for loss mitigation options before initiating foreclosure. You can also call the VA Regional Loan Center at 877-827-3702 for direct assistance with your situation.
Did this pass with bipartisan support?
Yes. H.R. 1815 passed unanimously in both the House of Representatives and the Senate with no opposition votes in either chamber.
When do the partial claim rules take effect?
The VA must publish implementing regulations for the partial claim program. The 5-year authorization window runs from enactment. Monitor VA.gov for specific program guidelines, servicer participation requirements, and application procedures.
