Department of Veterans Affairs home loan program shutdown impacts thousands

An investigation into Department of Veterans Affairs data reveals that thousands of military veterans are facing higher interest rates and increased monthly mortgage payments. This follows the shutdown of a low-interest program by the Trump administration last year.

Among veterans who sought loan modifications due to financial hardship, more than 15,000 saw their monthly payments rise by at least $150. Additionally, over 700 veterans experienced payment increases of $1,000 or more. While most mortgage modifications in the broader U.S. market through Fannie Mae or Freddie Mac result in lower or stable payments, 63% of veterans receiving VA loan modifications saw their costs increase.

Representative Mark Takano, the ranking member of the House Veterans' Affairs Committee, criticized the findings, noting that the increases affect veterans who were already in financial distress.