HR1803119th CongressWALLET

Fair Access to Co-ops for Veterans Act of 2025

Sponsored By: Representative Rep. Meng, Grace [D-NY-6]

In Committee

Summary

Expands veterans' access to cooperative housing through VA loan guarantees. It treats co-op stock as residential property, requires new underwriting standards aligned with the Federal National Mortgage Association, and changes loan fees.

Show full summary
  • Veterans and households: Removes a prior five-year limitation and treats cooperative housing stock or membership as residential property, making co-op share purchases eligible for VA-guaranteed loans.
  • Lenders and markets: Directs the Secretary to set minimum underwriting, loan processing, project, share eligibility, and valuation standards that, to the extent feasible, align with the Federal National Mortgage Association, clarifying criteria for lenders and securitization.
  • Borrowers and administration: Adds an extra 3.25 percent fee on top of the standard loan fee, applies that fee to assumed loans on the unpaid principal balance, and allows the Secretary to advertise availability and issue guidance before final regulations to speed use.

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Bill Overview

Analyzed Economic Effects

3 provisions identified: 1 benefits, 1 costs, 1 mixed.

Higher VA fee for co-op loans

If you use a VA guarantee for a co-op loan, you would pay an extra fee equal to 3.25% of the loan amount, on top of the standard VA fee. For a loan assumption, the 3.25% would apply to the unpaid balance at transfer. This would be a one-time closing cost and would start upon enactment.

VA co-op loans expand pending rules

This bill would let VA treat co-op shares that let you live in a single‑family unit as residential property. It would remove the old five‑year limit on VA guarantees for co‑op loans. However, VA could not guarantee these loans until it issues rules on underwriting, processing, project standards, share eligibility, and valuation. Those rules would aim to match Fannie Mae standards where suitable. If enacted, these changes would take effect on enactment, but guarantees would wait for the new rules.

VA outreach and guidance on co-op loans

The VA would be allowed to issue guidance to start the co‑op loan program before formal regulations. The VA would also advertise the availability of these guarantees and notify veterans, lenders, and realtors about how to apply. These steps could speed awareness once the program is active.

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Sponsors & CoSponsors

Sponsor

Rep. Meng, Grace [D-NY-6]

NY • D

Cosponsors

  • Malliotakis

    NY • R

    Sponsored 3/3/2025

  • Rep. Fitzpatrick, Brian K. [R-PA-1]

    PA • R

    Sponsored 5/7/2025

  • Rep. Cohen, Steve [D-TN-9]

    TN • D

    Sponsored 10/10/2025

  • Rep. Kennedy, Timothy M. [D-NY-26]

    NY • D

    Sponsored 2/24/2026

Roll Call Votes

No roll call votes available for this bill.

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