U.S. Sen. Raphael Warnock, D-GA, joined his colleagues to introduce bipartisan legislation that he says will increase awareness of the VA Home Loan Program for veterans. The “VA Home Loan Awareness Act” would add a disclosure to the standard mortgage prequalification application (Uniform Residential Loan Application) to inform Veterans that they may qualify for a VA Home Loan.
“This bipartisan bill will better equip our veterans with the information and resources they need to become homeowners and pursue their American Dream, after working so hard to defend our freedoms,” said Warnock. “Our veterans and servicemembers represent the best among us. For all our veterans have sacrificed, the least we can do is ensure they and their families can take advantage of the benefits they have valiantly earned.”
According to Warnock this bill aims to increase awareness of the VA Home Loan Program by:
● Adding a disclosure informing Veterans they may be eligible for a VA Home Loan the URLA form.
● Directing applicants to consult their lender for more information about the VA Home Loan Program.
● Instructing the GAO to conduct a review and report to Congress regarding lenders adoption of the URLA form updates.
The VA Home Loan Program is the primary tool for helping veterans and their spouses purchase a home. It offers veterans unique perks for financing their home purchases, including no down payment, no private mortgage insurance, and oftentimes lower interest rates than conventional FHA loans. Despite these benefits, only 13 percent of veterans ever utilize their VA Home Loan benefit.
Warnock explained that among Veterans who choose not to use the VA loan when purchasing a home, 33 percent of them say it was because they were not aware of the program. This rate is even higher among surviving spouses as 46 percent of them said they did not know they were eligible for a VA Home Loan at the time of their purchase.
“Shockingly, studies show that only half of all Veterans say they were informed of the VA Home Loan program by their lender,” said Warnock. “By simply informing more veterans of their eligibility for the VA Home Loan Program, we can ensure that those who risk their lives for our freedom are also able to afford a house in the country they’ve sworn to protect.”
The bill has the endorsement of Veterans Association of Real Estate Professionals (VAREP), Veterans of Foreign Wars (VFW), and Vietnam Veterans of America (VVA).
