The VA updated appraisal requirements for VA-backed purchases and launched a new partial-claim option for veterans in default, giving real estate professionals timely information to share with VA buyers and homeowners who may need to contact their lender, servicer, or VA.
The Department of Veterans Affairs made two home-loan updates that could matter at different points in the housing conversation: one for veterans using VA financing to buy a home and one for veterans trying to avoid foreclosure.
VA updated its appraisal process tied to Minimum Property Requirements, the standards a property must meet for a VA-guaranteed home loan. The agency said the changes are meant to reduce delays, remove outdated rules and help veteran buyers move faster in a competitive market. The updates include changes to radon requirements, pre-1978 property standards, detached improvements and non-vented heaters. VA said the average VA appraisal took about seven business days as of May 31.
The updates point to the need for clear expectations in VA-backed transactions, steady communication among all parties and lender guidance for buyers with loan-specific questions.
VA also launched a Partial Claim Program to help veterans in default avoid foreclosure. Under the program, mortgage servicers identify eligible veterans, place them on a three-month trial payment plan and, after successful completion, use the partial claim to bring the loan current.
VA said servicers helped 173,000 veterans avoid foreclosure in fiscal year 2025. For homeowners under financial stress, the program is another reason to contact their mortgage servicer or VA before assuming foreclosure or a rushed sale is the only path forward.
