H.R. 8532

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

<DOC>

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.

_______________________________________________________________________

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

_______________________________________________________________________

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>