As part of the ROAD to Housing Act, a bipartisan legislative package aimed at increasing the nation’s housing supply, improving housing affordability, and reducing homelessness, among other priorities, U.S. Senator Chris Van Hollen (D-Md.), a member of the Senate Committee on Banking, Housing, and Urban Affairs, announced that the Committee had approved two of his bills to assist more veterans in becoming homeowners.
The bipartisan VA Home Loan Awareness Act, which he proposed with Senator Tim Sheehy (R-Mont.), and the Veterans Affairs Loan Informed Disclosure (VALID) Act, which he introduced with Senator John Boozman (R-Ark.), were included in this package because to the efforts of Senator Van Hollen.
When combined, these laws will ensure that veterans are given the opportunity to apply for a mortgage and would provide them with more information about the VA Home Loan Program.
“Whether they’re renting or buying, too many Americans are faced with housing costs that are too high,” said Senator Van Hollen. “The ROAD to Housing Act makes some important investments in tackling our nation’s housing challenges, from boosting the supply of homes to reducing homelessness. Within this legislation, I also worked to ensure we’re better upholding our duty to support our veterans when they return from their service—by including my bipartisan bills to help more veterans and their families secure affordable home loans. This package is a bipartisan step forward on some needed investments and reforms, but it is only a modest first step. It is critical that we do much more to deliver affordable housing to the American people.”
Home Loan Awareness Act — U.S. Summary
One in ten veterans have been homeless, according to research, frequently years after leaving the military and coming home. At the same time, homeownership is becoming more and more unattainable due to growing housing expenses. Veterans can save thousands of dollars and create long-term financial security by taking advantage of programs like the VA Home Loan, which are more crucial than ever.
U.S. Veterans who participate in this program can benefit from interest rates that are frequently lower than those of traditional FHA loans, no down payment requirements, and no private mortgage insurance requirement. Only roughly 13% of veterans take advantage of the VA Home Loan Program in spite of these advantages. Some 33% of veterans who do not utilize the VA Home Loan program claim to be unaware of it.
By requiring the military service question and adding a disclosure to the Uniform Residential Loan Application (URLA), the provisions of Senator Van Hollen’s measures contained in the ROAD to Housing Act will assist in better educating veterans about the benefits of VA Home Loans.
By urging applicants to speak with their lender for additional details regarding the VA Home Loan program, this will guarantee that veterans are informed that they might qualify for a VA Home Loan. In order to inform applicants about VA Home Loans at an early stage of the homebuying process, lenders will also be provided with information on the applicants’ military service.
For veterans to quickly compare conditions and locate the best offer, they also demand that Federal Housing Administration (FHA) mortgage disclosures be updated to include VA Home Loans alongside FHA and conventional loan options.
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