NAR Urges Enhancements to VA Home Loan Guaranty Program
Last week the House Financial Services Insurance and Housing Subcommittee held a hearing entitled "Housing for Heroes: Examining How Federal Programs Can Better Serve Veterans." While the hearing focused on homeless programs for veterans, NAR took this opportunity to highlight the importance of the VA Home Loan Guaranty program and several enhancements that could make the program even more valuable to our American servicemen and women.
In a letter to the Subcommittee that was made part of the hearing record, NAR urged changes to the loan program that will allow veterans more flexibility when purchasing a home. First, NAR urged VA to change the rules that govern which fees and services veterans may pay for. While we support efforts to keep costs down for veterans, the current rules prevent veterans from being able to purchase many homes.
Second, NAR urged VA to create a renovation purchase loan similar to FHA's 203k loan for veterans. This type of loan would allow veteran purchases to role rehabilitation/renovation costs into their mortgage. This program has been successful under FHA and provides safeguards to insure repairs are being made and costs are being managed.
The VA Home Loan Guaranty is a commitment to our nation's veterans in return for their service. This program has provided important resources thus far, and we believe these enhancements will provide even greater benefits.