VA Home Loan Affordability Act

[Congressional Bills 119th Congress] [From the U.S. Government Publishing Office] [H.R. 8532 Introduced in House (IH)]

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119th CONGRESS 2d Session H. R. 8532

To amend title 38, United States Code, to align elements of the housing loan program of the Department of Veterans Affairs with requirements of the Federal Housing Administration, and for other purposes.

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IN THE HOUSE OF REPRESENTATIVES

April 27, 2026

Mr. Van Orden (for himself, Mr. Bost, Mr. Barrett, Mrs. Kiggans of Virginia, and Mr. Ciscomani) introduced the following bill; which was referred to the Committee on Veterans' Affairs

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A BILL

To amend title 38, United States Code, to align elements of the housing loan program of the Department of Veterans Affairs with requirements of the Federal Housing Administration, and for other purposes.

Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

This Act may be cited as the ``VA Home Loan Affordability Act''.

SEC. 2. ALIGNMENT OF HOUSING LOAN PROGRAM OF THE DEPARTMENT OF VETERANS AFFAIRS WITH REQUIREMENTS OF THE FEDERAL HOUSING ADMINISTRATION.

(a) Prohibition of Requirement of Third Party Verification of Lender Fees.--Section 3703(a)(2)(B) of title 38, United States Code, is amended-- (1) by inserting ``in regulations'' after ``Secretary may prescribe''; and (2) by adding at the end the following: ``In prescribing such regulations regarding fees paid by a veteran borrower to lender, the Secretary may not require documentation of such fees by a third party.'' (b) Refinancing of Housing Loans.-- (1) Authority to waive appraisal.--Section 3709(a) of title 38, United States Code, is amended-- (A) by redesignating paragraphs (1) through (3) as subparagraphs (A) through (C), respectively; (B) by inserting ``(1)'' before ``Except''; and (C) by adding at the end the following new paragraph: ``(2) The Secretary may authorize the refinancing of a loan described in paragraph (1) without an appraisal.''. (2) Minimum interest rate for adjustable rate mortgage.-- Section 3709(b)(3) of title 38, United States Code, is amended by striking ``200 basis points'' and inserting ``75 basis points''. (c) Expansion of Guaranteed Loans for Condominiums.--Section 3710(a)(6) of title 38, United States Code, is amended, in subsection (a)(6), by striking ``, if such development or project is approved by the Secretary under criteria which the Secretary shall prescribe in regulations''. (d) Maximum Closing Costs and Seller Fees for Guaranteed Loans.-- Section 3710(b) of title 38, United States Code, is amended-- (1) in paragraph (7)(C)(ii), by striking ``; and'' and inserting a semicolon; (2) in paragraph (8), by striking the period at the end and inserting a semicolon; and (3) by adding at the end the following new paragraphs: ``(9) the closing costs actually paid by the veteran do not exceed 1.5 percent of the amount of the loan; and ``(10) the seller fees actually paid by the veteran do not exceed six percent of the outstanding balance of the loan.''. (e) Regular Prescription of Debt-to-Income Ratios.--Section 3710(g)(3)(A), of title 38, United States Code, is amended by inserting ``, reviewed and prescribed not less than once every two years,'' after ``debt-to-income ratios''. (f) Minimum Experience of an Appraiser Required.--Section 3731(a)(1) of title 38, United States Code, is amended by striking ``certification of an appropriate number of years'' and inserting ``a certificate or license issued by a State''. (g) Review of Appraisal Minimum Property Requirements.--Not later than 90 days after the date of the enactment of this Act, the Secretary of Veterans Affairs shall-- (1) review regulations prescribed under section 3710(b)(4) of title 38, United States Code, regarding the suitability of property; and (2) prescribe new such regulations that the Secretary determines appropriate. (h) Plan To Modernize IT for Housing Loans.--Not later than 180 days after the date of the enactment of this Act, the Secretary of Veterans Affairs shall submit to the Committees on Veterans Affairs of the Senate and House of Representatives the plan of the Secretary to modernize the information technology used to administer housing loans under chapter 37 of title 38, United States Code. <all>