If my house is financed by VA and I have suddenly had bad foundation damage, is there a way to get the VA to assist?

VA didn't finance your loan. They just backed up the 20% you'd normally have to chip in as a down payment. So their "exposure" is small. Going to bat for you isn't in their Charter. The lender, who footed the entire bill, is the one having the most risk. In general, most sales agreements have a lot of words about "good faith", i.e. as far as I know, stuff is OK. When something happens that wallops OK, then you do the normal drill of checking out your homeowners policy. You also look to see if all the "good faith" stuff was true in that would a "reasonable person standard" in a similar situation doing a sale act the same way the players did. Same question points to the RE Agent, Title Company, and inspection outfit. Look to see if all the permits were in order on original construction. Many times a foundation bust (settlement, etc.) has to do with the water table changing or frequently a neighbor uphill does some landscape or drainage changes which pushes a lot of water underground to your property and weakening the substrate. Happens a lot in coastal California. Standby to see the various players scatter. Unfortunately, many of these issues wind up in a civil tort case. Foundations are a tricky thing people take for granted. The real "what caused it" is often clouded by people spouting theories designed to point the finger elsewhere. Sorry you have thing to deal with. Nobody deserves it.

Oh, I'll add as a Civil Engineer, this stuff is fixable, but at a cost. Foundation stabilization usually involves jacking, injection grouting and maybe bentonite injection as well. The big thing is stopping whatever is causing the settlement, lest you do a fix only to have a repeat.

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Thanks everyone, please keep the advice coming. I am getting smarter by the minute. My plan is to work with this soldier and prepare him and then make a few calls on his behalf and see if I can throw some weight around. At a minimum the bank should be able to help him better on the loan for the repairs. With a little pushing and maybe a lot of Vets calling and perhaps a congressman and media leak I can get some attention put on this where someone will help. There is power in numbers. One of the things I have noticed in doing this program is that with all of the Veteran programs in the world Veterans still feel alone. I will make a call to the bank and let them know I will point an army towards them if they don't step up. First I have to prepare for battle, understand the enemy and then attack with a vengeance. I set out to train Veterans in IT but that is just 25% of who they are the other 75% needs to be addressed as well. How can a guy worry about job and learning new skills when he goes to bed at night worried if his house with collapse on his daughter.