Congress Just Introduced the VA Home Loan Affordability Act

On May 1, 2026, the House Committee on Veterans’ Affairs introduced H.R. 8532, the VA Home Loan Affordability Act — a sweeping bill that takes direct aim at the bureaucratic hurdles and costs that slow Veterans down in today’s competitive housing market. If passed, this legislation would fundamentally change what Veterans pay at closing, how fast they can close, and how the VA home loan program operates day to day.

This bill is led by Rep. Derrick Van Orden (R-WI), a retired Navy SEAL and chairman of the Subcommittee on Economic Opportunity, along with House VA Committee Chairman Mike Bost (R-IL). It builds on the momentum of the VA Home Loan Program Reform Act (signed into law by President Trump in July 2025) and goes further to address the affordability crisis hitting Veterans in 2026.

What the Bill Would Do

1. Cap Closing Costs at 1.5% of the Loan Amount

This is the headline provision. Current VA loan closing costs typically range from 2% to 5% of the loan amount, depending on the lender, location, and services required. On a $400,000 VA loan, that’s $8,000 to $20,000 in closing costs that Veterans pay out of pocket or negotiate to have the seller cover.

The VA Home Loan Affordability Act would cap total closing fees at 1.5% — bringing that same $400,000 loan down to a maximum of $6,000 in closing costs. That’s a potential savings of $2,000 to $14,000 per transaction.

This cap would bring VA loan closing costs significantly below the industry average for non-VA loans, which currently run 2% to 6% according to industry data. It aligns the VA program with the most competitive federal housing programs and removes one of the last remaining cost barriers for Veterans using their benefit.

2. Speed Up VA Appraiser Certification

The national shortage of VA-certified appraisers has been a persistent problem that delays closings and frustrates Veterans in competitive markets. Because VA appraisals must be conducted by VA-approved appraisers assigned through the VA’s system, limited appraiser availability in many areas creates bottlenecks — sometimes adding weeks to the closing timeline.

The bill would streamline and shorten the appraiser certification process, making it faster for qualified appraisers to become VA-certified. More appraisers in the system means shorter wait times for VA appraisals, which means Veterans can compete more effectively in markets where speed matters.

3. Cut Bureaucratic Red Tape

The legislation targets unnecessary regulatory processes that slow down the VA loan program without adding meaningful protection for Veterans. While the specific streamlining provisions are still being detailed as the bill moves through committee, the stated goal is to modernize the program to reflect today’s competitive housing market — where delays of even a few days can cost a Veteran a home.

Why This Bill Is Needed: The Numbers Tell the Story

The VA home loan program served over 528,000 Veterans and service members in fiscal year 2025, making it one of the most used federal housing programs. But data from 2026 shows significant gaps between the program’s potential and its reach:

• 49% of Veterans feel homeownership is out of reach — driven largely by perceived upfront costs, according to a 2026 survey by NewDay USA and Researchscape
• 45% don’t have enough savings for closing costs — even though VA loans require zero down payment, closing costs remain a barrier
• 30% of Veterans aren’t sure if they qualify — lack of education about the benefit keeps eligible Veterans on the sidelines
• 58,000+ VA loans go unused annually — representing nearly $28 billion in untapped VA loan volume, particularly in high-cost markets like New York, Los Angeles, and Boston
• Only 21% of non-homeowner Veterans are likely to buy in 2026 — but that number doubles to 40% when upfront costs are removed

The message is clear: Veterans want to buy homes. They have access to the best mortgage benefit in America. But closing costs and process delays are keeping too many of them out of the market.

How This Connects to the VA Home Loan Program Reform Act

The VA Home Loan Affordability Act builds on the foundation of H.R. 1815, the VA Home Loan Program Reform Act, which was signed into law on July 30, 2025. That law created the permanent Partial Claim Program — allowing the VA to make payments to lenders to prevent foreclosure on delinquent VA loans — and modernized the VA’s loss mitigation procedures.

Together, these two bills represent a comprehensive overhaul of the VA home loan program: the Reform Act protects Veterans who already own homes from losing them to foreclosure, while the Affordability Act makes it easier and cheaper for Veterans to buy homes in the first place. For more on how the Reform Act affects Veterans facing payment difficulty, see our VASP Ended: Foreclosure Options for Veterans guide.

What This Means for You Right Now

The VA Home Loan Affordability Act was introduced on May 1, 2026, and is now moving through the House Veterans’ Affairs Committee. It has bipartisan support and builds on a law that was already signed, which is a strong indicator it could move through Congress. However, no bill is guaranteed to pass, and the timeline for enactment is uncertain — it could be months or longer.

Should You Wait to Buy?

No. Here’s why:

• The bill hasn’t passed yet — and there’s no guarantee on timing. Waiting for legislation that may take 6–12 months to enact (if it passes) means missing today’s market conditions
• You can already negotiate closing costs — VA loans allow sellers to pay up to 4% of the purchase price in concessions, which can cover most or all of your closing costs today
• Rates are favorable right now — VA rates in the mid-5% range are significantly better than the 7%+ rates of 2023–2024. For a full breakdown, see our Buy Now or Wait? analysis
• You’re building equity every month you own — every month spent waiting is a month of rent with zero equity return
• If the bill passes, it may apply to future transactions — you could potentially benefit on a refinance or next purchase even if you buy now

What Veterans Can Do Right Now to Reduce Closing Costs

• Negotiate seller concessions: In today’s market with improving inventory, sellers are more willing to contribute toward closing costs. VA allows up to 4% of the purchase price
• Ask about lender credits: Some lenders offer credits toward closing costs in exchange for a slightly higher interest rate — this can make sense if you plan to refinance later with a VA IRRRL
• Compare closing cost estimates: Get Loan Estimates from at least 2–3 VA lenders and compare their origination charges, third-party fees, and total closing costs
• Check your funding fee status: Veterans with a service-connected disability are exempt from the VA funding fee, which saves $5,000–$13,000+ on a typical loan. See our VA Funding Fee Chart for details
• Consider a no-closing-cost loan: Some lenders offer options where closing costs are rolled into the loan balance or offset by rate adjustments

The Bigger Picture: VA Loans Keep Getting Better

Between the VA Home Loan Program Reform Act (foreclosure prevention), the VA Home Loan Affordability Act (closing cost caps), VantageScore 4.0 approval (better credit scoring through select lenders — we have access), and the 2026 loan limit increase to $832,750, the VA home loan program is being upgraded across the board. The benefit Veterans earned through service is being strengthened to match today’s housing market challenges.

If you’re a Veteran or active-duty service member who has been on the fence about buying a home, the combination of these changes creates the strongest buying environment for VA borrowers since rates bottomed out in 2021. You don’t need to wait for every bill to pass — the tools available today are already powerful enough to get you into a home with minimal upfront cost and the best terms in the market.