VA Home Loan Affordability Act

Reduced Documentation Burdens: Under Section 2(a), the Secretary may no longer require third-party documentation for fees paid by a veteran borrower to a lender.

Easier Refinancing: Section 2(b)(1) allows the Secretary to authorize the refinancing of certain loans without requiring an appraisal.

Lower Interest Rates for Adjustable Mortgages: Section 2(b)(2) changes the minimum interest rate for an adjustable-rate mortgage from 200 basis points to 75 basis points.

Expanded Condominium Options: Section 2(c) expands guaranteed loans for condominiums by striking the requirement that the development or project be approved by the Secretary under specific regulated criteria.

Capped Costs: Section 2(d) establishes that closing costs paid by a veteran cannot exceed 1.5 percent of the loan amount, and seller fees cannot exceed six percent of the outstanding loan balance.

Updated Debt-to-Income Standards: Section 2(e) ensures that debt-to-income ratios are reviewed and prescribed at least once every two years.

Simplified Appraiser Requirements: Section 2(f) changes the requirement for appraisers from a certification of a specific number of years to a certificate or license issued by a State.