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119-hr-8532119th CongressWALLET

VA Home Loan Affordability Act

Sponsored By: Representative Van Orden, Derrick [R-WI-3]

Introduced

Summary

This bill would align VA home loan rules with the Federal Housing Administration to streamline and lower costs for veteran borrowers. It focuses on reducing fees, expanding condo eligibility, and speeding refinancing without extra paperwork.

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  • Veterans and homebuyers: Could face lower upfront costs and faster refinances. Closing costs paid by the veteran would be capped at 1.5% of the loan amount and seller fees at 6% of the outstanding balance.
  • Condominium buyers and developers: Removes the requirement that projects be preapproved by the VA, expanding which condo projects can qualify for VA-guaranteed loans.
  • Lenders and appraisers: The Secretary could not demand third-party verification of lender fees, and appraisers would need a state license or certificate instead of a years-of-experience rule. The minimum adjustable-rate margin would fall from 200 basis points to 75 basis points.
  • VA administration and underwriting: Debt-to-income ratios must be reviewed and set at least once every two years. The Secretary would also submit an IT modernization plan for VA housing loans within 180 days.

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Bill Overview

Analyzed Economic Effects

3 provisions identified: 2 benefits, 0 costs, 1 mixed.

Lower VA mortgage costs for veterans

If enacted, VA would limit the closing costs you pay on a VA‑guaranteed loan to 1.5% of the loan amount. It would cap seller fees you pay to 6% of the outstanding loan balance. The minimum spread on VA adjustable‑rate mortgages would be lowered from 200 basis points to 75 basis points. The VA Secretary would also be allowed to permit some refinances without an appraisal and could not require third‑party proof of fees paid to a lender when writing rules.

More VA condo loan options

If enacted, the bill would remove the rule that a condominium project must have prior VA Secretary approval before units can qualify for VA‑guaranteed loans. The VA would also have 90 days after enactment to review and, if appropriate, rewrite rules about which properties are suitable for VA loans. That could make more condos and other properties eligible for VA financing.

New VA appraisal and underwriting rules

If enacted, the bill would require VA appraisers to hold a State certificate or license. It would also require the VA to review and prescribe debt‑to‑income ratios at least once every two years. These changes could improve professional standards but might change which appraisers are eligible and could lead to tighter or looser underwriting over time.

Sponsors & CoSponsors

Sponsor

Van Orden, Derrick [R-WI-3]

WI • R

Cosponsors

  • Rep. Bost, Mike [R-IL-12]

    IL • R

    Sponsored 4/27/2026

  • Rep. Barrett, Tom [R-MI-7]

    MI • R

    Sponsored 4/27/2026

  • Rep. Kiggans, Jennifer A. [R-VA-2]

    VA • R

    Sponsored 4/27/2026

  • Rep. Ciscomani, Juan [R-AZ-6]

    AZ • R

    Sponsored 4/27/2026

  • Rep. James, John [R-MI-10]

    MI • R

    Sponsored 6/9/2026

  • Rep. McGuire, John J. [R-VA-5]

    VA • R

    Sponsored 6/30/2026

  • Rep. Kean, Thomas H. [R-NJ-7]

    NJ • R

    Sponsored 8/3/2026

  • Rep. Gallagher, James [R-CA-1]

    CA • R

    Sponsored 8/27/2026

Roll Call Votes

No roll call votes available for this bill.

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