Barrett Helps Lead Plan to Streamline VA Home Loan Program

Washington, D.C. - Congressman Tom Barrett (MI-07) joined Congressman Derrick Van Orden (WI-03), House Veterans' Affairs Committee Chairman Mike Bost (IL-12), Congresswoman Jen Kiggans (VA-02), and Congressman Juan Ciscomani (AZ-06) to introduce the VA Home Loan Affordability Act (H.R. 8532). This legislation would reduce delays and lower costs to help more veterans buy a home or refinance a loan by modernizing the VA Home Loan Program. It also expands on Barrett's broader plan to Revive the American Dream, part of his Blueprint for a Better America.

"The men and women who put on the uniform to defend the United States have earned every resource our country has to offer that can help them achieve the American Dream of homeownership," said Barrett. "Competitive VA home loans have already helped countless veterans buy a house to start a life and raise a family after retiring from service, and now we are making the program even better. The VA Home Loan Affordability Act will modernize this life-changing program by updating outdated rules, cutting the red tape that can cause unnecessary delays in the loan process, and getting veterans into homes faster. That's a mission we can all get behind."

Specifically, the VA Home Loan Affordability Act (H.R. 8532) would:

• Help veterans pay less when finalizing their home loan by setting the cap for covered closing costs and seller fees at rates aligned with Federal Housing Administration (FHA) rates.
• Expedite approval for VA home loans by certifying more appraisers. Currently, the VA requires appraisers to have three to five years of relevant experience to be certified to appraise homes veterans wish to buy, but the bill would allow any appraiser to fulfill the experience requirement with a state license, which typically requires only 12 to 18 months of experience;
• Remove unnecessary paperworkby ending the requirement that veterans provide a third party with documentation of the fees they paid to a lender;
• Allow veterans to purchase condos more easily by simplifying the condo-specific approval process;
• Update VA requirements for livable property condition, the appraisal process, and debt-to-income ratios. The bill would require the VA to review and update its debt-to-income rules every two years; the VA would also need to complete a review of minimum property requirements and the appraisal process within 90 days, modernizing the rules to mirror the policies of FHA and other federal housing entities.
• Modernize the IT system used to administer VA home loans.

H.R. 8532 is the 14th bill in Barrett's wide-ranging plan to tackle rising housing costs and help more mid-Michigan families afford to buy a home. The second pillar of Barrett's Blueprint for a Better America, Reviving the American Dream, also includes legislation to lower costs by cutting red tape to build more homes, empowering families to save for a first home, preventing large-scale corporations from buying up single-family houses, and more. One other bill in Barrett's housing plan would expand eligibility for VA home loans to more members of the National Guard and Armed Forces Reserve.

About Barrett's Blueprint for a Better America:

• Restoring Trust in Government: Making Government Serve the People, Not Special Interests
• Reviving the American Dream: Helping Families Afford Homes in Mid-Michigan
• Making Health Care Affordable Again: Lowering Costs for Working Families
• Recalibrating American Foreign Policy: Ending Endless Wars and Promoting Peace Through Strength
• Reforming Campaign Finance: Putting Governing Before Campaigning