WASHINGTON: Thousands of U.S. military veterans are facing higher monthly mortgage payments after President Donald Trump’s administration ended a federal loan relief program designed to help struggling former service members keep their homes, according to a new NPR investigation report.
The investigation found that about 15,000 veterans saw their monthly mortgage payments increase by at least $150, while more than 700 experienced increases of $1,000 or more after changes to the government-backed mortgage assistance system.
The findings are based on previously unpublished data obtained from the Department of Veterans Affairs, which manages mortgage benefits for eligible former service members.
In 2025, the Trump administration ended the Veterans Affairs Servicing Purchase program, known as VASP. The initiative allowed the federal government to purchase certain troubled home loans and provide veterans with more affordable repayment terms.
The program was designed to help veterans who had fallen behind on their mortgage payments avoid foreclosure and remain in their homes. However, its termination left many borrowers with fewer options for managing their housing costs.
NPR reported that 63% of veterans who received loan modifications saw their monthly payments increase. By comparison, only 2% of borrowers with modified loans backed by Fannie Mae and Freddie Mac experienced higher payments.
Loan modifications are generally intended to make mortgage payments more affordable for homeowners facing financial difficulties. However, some veterans faced higher interest rates when their loans were restructured after the VASP program ended.
The administration later introduced a separate partial-claim program under legislation signed by Trump in July 2025. The new initiative, which took effect in June 2026, allows eligible borrowers to postpone payment of certain overdue mortgage amounts.
However, the replacement program does not automatically reverse payment increases caused by earlier loan modifications, leaving some veterans struggling with higher monthly housing costs.
