(Photo: Jens Neumann)
A new bipartisan proposal in Congress could make it easier for Veterans, especially those in rural communities, to purchase homes using VA-backed loans.
The VA Appraisal Modernization Act is designed to fix long-standing issues in the appraisal process that slow down home loan approvals. According to lawmakers backing the bill, a shortage of VA-certified appraisers has slowed down loan approvals, sometimes causing Veterans to lose out on homes to buyers using faster financing options.
This issue is more noticeable in rural areas such as Northern and inland California, where fewer appraisers are available, and travel distances can add even more time to the process.
The proposed legislation focuses on increasing the number of appraisers participating in the VA program. One of the main changes would adjust appraisal fees to better match current market rates, making the role more appealing to licensed professionals. In high-demand areas, fees would be raised to at least 125 percent of standard rates starting in 2027, with regular updates to keep pace with industry costs.
Additional measures in the bill include providing mileage reimbursements for appraisers working in remote or underserved regions and requiring the VA to increase fees in areas where appraiser shortages are most severe. Lawmakers also want the agency to study new ways to contract appraisers in hard-to-fill locations and explore whether parts of the VA appraisal process could be adjusted to align more closely with systems used by other federal housing programs.
By guaranteeing loans through private lenders, the VA home loan program helps Service Members and Veterans access homeownership. As part of that process, however, every property must be evaluated by a VA-approved appraiser to confirm it meets safety standards and is priced fairly. While this requirement protects buyers, it has also created challenges when there are not enough appraisers available to meet demand.
Supporters of the bill say these changes would reduce delays, speed up closings, and make VA loan offers more attractive to sellers who may currently avoid them due to longer timelines. The goal is to create a more efficient system that still protects Veterans from overpaying or purchasing homes with serious issues.
If passed, the legislation could help more Veterans secure housing without unnecessary setbacks, while maintaining the safeguards that have long been part of the VA home loan program.
Author: Rikki Almanza
Rikki is a Web Content Coordinator for the American Legion, Department of California. With a deep-rooted family connection to the military, Rikki is committed to using her skills and knowledge to provide valuable assistance and resources to servicemembers and veterans.
