H.R. 8532

119 HR 8532 IH: VA Home Loan Affordability Act
 U.S. House of Representatives
 2026-04-27
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 I  119th CONGRESS  2d Session  H. R. 8532  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.
1.
Short title
This Act may be cited as the   VA Home Loan Affordability Act  .
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.