A home is advertised for sale in Hampton Roads, Virginia, on Jan. 3, 2017. (Staff Sgt. Teresa J. Cleveland/Air Force)
A new congressional proposal would require federal officials to better explain the costs and advantages of Veterans Affairs home loans in an effort to dispel myths about the homebuying benefit.
The bipartisan bill, dubbed the Veterans Affairs Loan Informed Disclosure Act (or VALID Act), would require the veterans be provided a side-by-side comparison of conventional home loans, Federal Housing Administration offerings and the VA home loan program as part of pre-purchase disclosure forms.
Supporters say the move would more directly show when VA loans may benefit would-be home buyers and encourage more usage of the program.
Bill sponsor Rep. Guy Reschenthaler, R-Pennsylvania, said in a statement, “As a Navy veteran who used a VA home loan, I know how difficult the process can be. It’s not surprising that only 10 to 15% of veterans report successfully using this significant benefit.”
“Modifying the Informed Consumer Choice Disclosure requirement to include VA home loans will improve transparency and help more veterans achieve the American Dream.”
The VA home loan program has come under increased scrutiny in recent months as housing prices have risen sharply.
In fiscal 2021, department officials guaranteed more than 1.44 million loans valued at roughly $447 billion, a record high and up 15% from the previous year.
However, outside advocates have testified before the House Veterans’ Affairs Committee that long wait times for processing the veterans loans coupled with other paperwork requirements have forced some veterans to drop the benefit in favor of quicker — but not always better — loan options.
Read the full story at Militarytimes.com.
Author: Military Times
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