The VA Home Loan Affordability Act makes several changes to how the Department of Veterans Affairs administers its housing loan program for veterans. The bill removes the requirement for third-party verification of lender fees, allows the VA to waive appraisal requirements for refinanced loans, and reduces the minimum interest rate floor for adjustable-rate mortgages from 200 basis points to 75 basis points. The legislation also expands access to VA-guaranteed loans for condominiums by removing certain approval requirements, caps closing costs at 1.5 percent and seller fees at 6 percent of the loan amount, and requires the VA to review and update debt-to-income ratio requirements every two years. Additionally, the bill directs the VA to review property requirements within 90 days and submit a plan to modernize its information technology systems for administering housing loans within 180 days of enactment, with no specific funding amount specified in the legislation.
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