Juan Ciscomani Introduces Bill Modernizing VA Home Loan Program

Representatives Juan Ciscomani (R-AZ) and Derrick Van Orden (R-WI) have introduced a bill to modernize the Department of Veterans Affairs' (VA) Home Loan program.

Last week, Representative Abe Hamadeh (R-AZ) drew attention to several issues plaguing the VA Home Loan program, including fee stacking, the continued use of manual underwriting, seller concession caps, and a shortage of appraisers due to stringent experience requirements.

The VA has a seller concessions cap of 4%, while the Federal Housing Administration (FHA) and U.S. Department of Agriculture (USDA) use a seller-concessions cap of 6%, which limits veterans' ability to compete in a highly competitive housing market.

Additionally, appraisers are required to have 3 to 5 years' experience to work with the VA, while the FHA and USDA only require 12 to 18 months, further extending wait times for veterans.

As a result, Rep. Ciscomani's VA Home Loan Affordability Act addresses the appraiser shortage, seller concessions, and institutes a 1.5% closing-cost cap.

"Homeownership is a cornerstone of the American Dream, especially for our veterans who should not face delays when buying a home because of outdated bureaucracy that has only made it increasingly difficult to access the benefits they have earned," the Arizona congressman said in a press release. "The VA Home Loan Affordability Act will modernize the home loan process, align it with other federal programs, and ensure that those who served our country can achieve homeownership without unnecessary barriers."

Similarly, Rep. Van Orden said, "The VA Home Loan program is one of the most powerful tools we have to expand economic opportunity for veterans and their families, and it must keep pace with today's housing market."

"The VA Home Loan Affordability Act ensures veterans can access a faster, more efficient path to homeownership. This is a decisive step to strengthen a program that has already helped millions and ensure it continues delivering for the next generation of American heroes," Rep. Van Orden added.