More than 15,000 veterans with VA-backed mortgages saw their monthly payments increase by at least $150 after the Trump administration ended a low-interest program designed to help struggling borrowers, according to an NPR investigation based on previously unreported Department of Veterans Affairs data.
The payment increases followed loan modifications made after borrowers experienced financial hardship. A loan modification changes the terms of an existing mortgage to help a homeowner address missed payments. For most Americans, such changes either reduce the monthly bill or leave it unchanged, depending on what the borrower can afford. NPR reported that the outcome was different for many veterans with VA loans after the program was shut down.
VA borrowers saw a different result
NPR found that 63% of veterans who received a loan modification experienced a higher payment. That compared with 2% of borrowers whose modified mortgages were guaranteed by Fannie Mae and Freddie Mac, the government-sponsored enterprises that back much of the U.S. mortgage market.
| Loan group | Share with higher payments after modification |
|---|---|
| VA-backed mortgages | 63% |
| Fannie Mae and Freddie Mac loans | 2% |
The investigation also found that more than 700 veterans had monthly payment increases of $1,000 or more. The figures describe borrowers who were already dealing with financial difficulty and sought changes to their mortgage terms.
“This is the height of insanity.”
— California Democratic Rep. Mark Takano, the ranking member of the House Veterans’ Affairs Committee, after NPR shared its findings
What happened to affected homeowners
Lenders use modifications to help homeowners catch up after missed payments by changing the structure of a loan. The approach commonly lowers the payment or keeps it at a level tied to the borrower’s finances. NPR reported that the VA program’s end left veterans facing a different process, with many seeing their mortgage bills rise instead.
The effect was substantial for some borrowers. NPR reported that more than 15,000 veterans had increases of at least $150 a month, while more than 700 faced increases of $1,000 or more. The investigation did not present those figures as a general result for every VA borrower; they concern veterans who received loan modifications after financial hardship.
One veteran profiled by NPR was Scott Boyd, who bought a home near Columbus, Ohio, in 2021 with a VA loan after serving in the Army. He later lost his job and encountered a financial crisis. NPR reported that Boyd had initially obtained a low interest rate, as did other homebuyers at the time, before his circumstances changed.
- More than 15,000 veterans saw monthly payments rise by at least $150.
- More than 700 experienced increases of $1,000 or more.
- The share of modified loans followed by higher payments was 63% for VA loans, compared with 2% for Fannie Mae and Freddie Mac loans.
The findings put the effects of the administration’s decision in the context of borrowers who had already fallen behind or faced another financial hardship. The Department of Veterans Affairs data reviewed by NPR provides a nationwide comparison with modifications involving Fannie Mae and Freddie Mac loans.
