What Veterans, Sellers & Agents Need to Know About the New VA Home Loan Reform Act (H.R. 1815)

A major update to the VA home loan process is here—and it matters more than you might think. With the introduction of H.R. 1815 (The VA Home Loan Reform Act), veterans will see a smoother path to homeownership, while sellers, agents, and investors will need to adjust to new standards and timelines. Whether you're navigating Arkansas' competitive housing market or helping clients make informed decisions, understanding this reform is essential.

Key Takeaways from the VA Home Loan Reform Act

Permanent Partial Claim Program

The law establishes a permanent partial claim option for struggling veteran homeowners. If a borrower falls behind, the VA can now advance funds to the servicer and hold them in an interest-free, forgivable lien—similar to FHA and USDA programs. This tool helps prevent foreclosure while keeping monthly payments manageable.

Standardized Loss Mitigation Process

The VA must now implement a defined loss mitigation “waterfall,” ensuring a consistent sequence of options—including partial claims—before foreclosing. This protects both veterans and lenders while promoting better communication and transparency throughout the process (Congress.gov).

Veterans Can Pay Buyer Agent Compensation

Previously, VA rules prevented veterans from directly compensating their agents, which put them at a disadvantage in markets where sellers were no longer covering commissions. Now, the law allows veterans to pay their own agents, creating parity with conventional buyers.

Increased Funding for Homeless Veteran Services

The law also boosts funding for the VA’s Grant and Per Diem program to $344 million in 2025 and $257.7 million annually through 2030, expanding support for transitional housing and veteran homelessness prevention programs (Congress.gov – full text).

Bipartisan and Industry-Wide Support

The bill passed with strong bipartisan backing and endorsements from the Mortgage Bankers Association, NAR, Rocket Mortgage, VFW, and the American Legion. It was signed into law by President Biden on July 30, 2025.

Market Relevance: What This Means for Arkansas Real Estate

In Arkansas—home to thousands of veterans and active-duty families—this law could be a game-changer. Sellers in cities like Little Rock, Texarkana, and Bentonville often hesitate to accept VA offers due to appraisal delays or concerns about repairs. Now, with more transparent processes and financing parity, VA-backed buyers are more competitive than ever.

Advice for Each Audience Segment

Buyers (Especially Veterans)

• Ask your lender about the partial claim program if you're struggling financially.

• Know that you can now pay your buyer's agent directly, giving you more control over representation.

• With stronger VA tools in place, don’t be afraid to compete in hot markets.

Sellers

• Be open to VA offers. The rules are more predictable now, with less friction.

• Agents representing you should be updated on the new VA timelines and appraisal protocols.

Investors

• Veteran demand for rental and resale homes near bases will likely increase.

• Properties in good condition will stand out, as VA appraisals still include habitability checks.

Agents

• Familiarize yourself with the updated VA loan procedures and loss mitigation waterfall.

• Help educate sellers on the strength and reliability of VA buyers post-reform.

Call to Action

Are you a veteran ready to buy—or a seller wondering how this new law affects your listing? Garka Group is here to help you navigate the changes with confidence. Reach out today for a personalized strategy session, home evaluation, or buyer consultation.