The Department of Veterans Affairs (VA) has unveiled a new loan assistance program for Veterans following the VA’s post-pandemic foreclosure halt. Termed the Veterans Affairs Servicing Purchase program, or VASP, it extends low-interest loans to Veterans confronting foreclosure due to financial difficulties. Moreover, VASP caters to Veterans ineligible for other VA loan assistance programs. It offers a lifeline to those facing the imminent loss of their residences. Here’s a breakdown of the program:

VA’s New Loan Assistance Program for Veterans

  • The Veterans Affairs Servicing Purchase program (VASP) targets around 40,000 Veterans at risk of losing their homes.
  • Starting May 31, 2024, VASP offers low-interest loans to Veterans who do not qualify for other VA loan assistance programs.
  • The VA says mortgage service providers will “identify qualified borrowers and submit requests on behalf of Veterans based on a review of all home retention options available and qualifying criteria.”

Key Features of VASP

  • Last Resort Solution: VASP serves as a “last resort” option for Veterans confronting foreclosure due to financial hardships.
  • Low-Interest Loans: Under VASP, the VA will purchase delinquent loans from holders. The VA will become the primary loan servicer, providing borrowers a stable payment plan at a fixed rate of 2.5% for the remainder of their loan.
  • Eligibility Criteria: VASP caters to Veterans ineligible for other VA loan assistance programs who have exhausted their available options from their mortgage servicer. This ensures support for those most in need.

“Let me be clear, VASP is a last resort option that may be available when it is the most appropriate home retention option under VA’s home retention waterfall,” said VA Under Secretary for Benefits Joshua Jacobs.

Significance of VASP

  • Vital Support: VASP aims to provide crucial support to Veterans and their families facing housing challenges.
  • Preventing Homelessness: By offering financial assistance, VASP helps prevent Veterans from losing their homes.
  • VA’s Commitment: The introduction of VASP underscores the VA’s dedication to supporting Veterans during difficult times. It reaffirms its role in serving those who have served their country.

The VA advises that you can call the VA at 877-827-3702 and select option 4.

Contact us at Hawaii VA Loans for information about utilizing your VA home loan benefits to become a Hawaii homeowner.