Rep. Mike Levin Unveils Bipartisan Bill to Waive Burdensome Home Loan Fees for Disabled Veterans
VA Home Loan Fees Can Reach Thousands of Dollars; New Bill Would Waive These Fees for More Disabled Veteran
Washington, D.C.- Today, Rep. Mike Levin (CA-49) and Delegate James Moylan (Guam-At Large) introduced the Veterans Assistance for Loan Origination Relief (VALOR) Act, H.R. 6193, to make Veterans Affairs (VA) home loans more accessible by waiving fees for disabled veterans. The bill received a hearing in the Veterans’ Affairs Subcommittee on Economic Opportunity on November 2, 2023. Rep. Levin is the Democratic Ranking Member of the Subcommittee.
VA home loans are a critical resource for servicemembers and veterans wanting to own a home. For disabled veterans, who already face more barriers to homeownership, VA offers fee waivers for their home loans. However, the current structure only waives fees for veterans whose disability ratings have been assigned before the closing date of their loans. This excludes transitioning servicemembers who have had their pre-discharge disability exam or review before their loans closed but had not yet received their disability rating before that date.
The VALOR Act would fix this by exempting veterans rated as disabled from the VA home loan funding fee if their pre-discharge disability exam or review occurred before the loan closed. The bill also directs VA to refund home loan fees to eligible disabled veterans who paid fees before the bill’s enactment.
“The path to homeownership for disabled veterans should be more accessible, with the goal of ensuring more veterans can buy quality, affordable homes. Many disabled veterans face burdensome home loan fees due to an outdated fee structure that does not account for when pre-discharge disability exams or reviews are done,” said Rep. Levin. “The VALOR Act updates the law and fee structure to support disabled servicemembers transitioning out of the military in setting a strong foundation for their civilian lives.”
“We have watched for years as veterans have been increasingly underserved by our own bloated bureaucracy,” said Rep. Moylan. “Our veterans across the nation are struggling to reintegrate back into the civilian world after their service and have been severely impacted by preexisting nonsense rules. Guam is especially impacted by housing shortages, and more often than not, veterans in my district bear the brunt of the status quo. I am proud to join Rep. Levin on this important bill as we fight to ensure lower barriers to home loans for veterans.”
"The Association of Independent Mortgage Experts (AIME) wholeheartedly applauds Reps. Levin and Moylan for championing the interests of our Veterans through the introduction of the VALOR Act. The bill addresses a critical and often overlooked problem that is currently costing our disabled Veterans thousands of dollars when purchasing a home. This legislation is not just a corrective measure, it’s a testament to our nation’s commitment to its heroes,” said Katie Sweeney, Chairman and CEO of AIME.
"VAREP endorses the VALOR Act and applauds Congressman Mike Levin for his forward thinking and goals to protect and advocate for veterans during the VA home loan process. All too often veterans, with a confirmed VA disability rating, find themselves faced with paying the funding fee because the paperwork does not get processed prior to the loan closing. The VALOR Act corrects this for veterans. VAREP is the only Veteran Service Organization with a direct understanding of the need to increase sustainable homeownership, financial-literacy education, VA loan awareness, and economic opportunity for the active-military and veteran communities,” said G2 Varrato, National Legislative Committee Director of the Veterans Association of Real Estate Professionals.
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