This bill expands the Department of Veterans Affairs loan guarantee program to make it easier for veterans to purchase shares in residential cooperative housing. Currently, the VA's co-op loan guarantee program has a five-year sunset provision and lacks clear underwriting standards, which limits its usefulness. The legislation removes the time limit on the program, requires the VA to establish detailed regulations for evaluating co-op loans (aligned with standards used by Fannie Mae), and adds a 3.25 percent fee on top of existing loan fees to cover the cost of guaranteeing these loans. The bill also directs the VA to actively advertise the program to veterans, lenders, and real estate professionals so more people know about this housing option. This legislation aims to give veterans greater access to affordable housing alternatives through cooperative ownership.
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