WASHINGTON––U.S. Senators John Boozman (R-AR), Tim Sheehy (R-MT) and Chris Van Hollen (D-MD) introduced the bipartisan VA Home Loan Awareness Act to help more veterans take advantage of the Department of Veterans Affairs (VA) Home Loan program and achieve home ownership.

The VA Home Loan program offers veterans no down payment, no private mortgage insurance and interest rates that are often lower than rates for conventional FHA loans. Despite these benefits, only 13 percent of veterans access the VA Home Loan program. Among veterans who don’t use the VA Home Loan program, 33 percent say they are not aware of the program.

“By making extra effort to inform veterans of the benefits they have earned, we can help the men and women who have served fulfill the American dream of home ownership,” said Boozman. “The VA Home Loan program has been historically underutilized, and I am pleased to see bipartisan support to increase awareness about its potential to help improve the lives of our veterans and their families.”

“For decades, owning a home has been the bedrock of the American Dream, but too often, those who have put their lives on the line for our country have been hampered by a lack of information from their own government. I’m proud to join Senator Van Hollen and my other colleagues in introducing this commonsense measure to empower our veterans with the knowledge and resources necessary to secure a VA Home Loan and achieve the same dream they fought to defend,” said Sheehy.

“After serving our country in uniform, our veterans deserve the support of a grateful nation. The VA Home Loan Program is one way we provide that support – by helping veterans purchase homes. But far too many of our veterans are unaware of this program and what it has to offer. Our bipartisan bill will help ensure more veterans and their families have the opportunity to use it to achieve their goal of homeownership,” said Van Hollen.

The VA Home Loan Awareness Act will help better inform veterans of opportunities provided by the VA Home Loan program by adding a disclosure to the Uniform Residential Loan Application (URLA) informing veterans they may be eligible for a VA Home Loan, directing applicants to consult their lender for more information about the VA Home Loan program, and instructing the Government Accountability Office (GAO) to conduct a review and report to Congress on lenders’ adoption of these URLA updates.

The legislation is also cosponsored by Senators Ted Cruz (R-TX), Raphael Warnock (D-GA), Ted Budd (R-NC), Sheldon Whitehouse (D-RI), Bernie Sanders (I-VT), Kevin Cramer (R-ND), Peter Welch (D-VT), Eric Schmitt (R-MO), John Kennedy (R-LA), Thom Tillis (R-NC), Bernie Moreno (R-OH), Jacky Rosen (D-NV) and Amy Klobuchar (D-MN).

Click here to read the text of the legislation.

WASHINGTON –– U.S. Senator John Boozman (R-AR), a senior member of the Senate Veterans’ Affairs Committee, joined Ranking Member Jerry Moran (R-KS) and Senators James Lankford (R-OK), Marsha Blackburn (R-TN), Kevin Cramer (R-ND) and Mike Braun (R-IN) to raise concerns to Department of Veterans Affairs (VA) Secretary Denis McDonough about how recently adopted Department of Housing and Urban Development (HUD) and Department of Agriculture (USDA) energy conservation policies could impact the cost of VA home loans for veterans.

On April 26, HUD and USDA announced they would be implementing the 2021 version of the International Energy Conservation Code (IECC) as the minimum energy efficiency standards for the financing of new single and multifamily homes.

“If adopted by the Department of Veterans Affairs, we are concerned that the revised standards could negatively affect the availability, affordability, and competitiveness of VA home loans for veterans,” wrote the senators. “Declining to finance any loans for new homes that do not meet these increased requirements, the agencies put accessible homeownership in jeopardy for thousands of veterans. Both rental and housing costs have risen at the fastest rates in decades, and any proposals that raise the cost of home building must be meticulously examined.”

“NAHB commends Sen. Moran for urging the VA Secretary to produce the department’s own analysis on how the 2021 IECC would affect housing affordability and the ability of veterans to obtain VA home loans,” said National Association of Home Builders Chairman Carl Harris. “Studies have shown that requiring new construction to adopt to the 2021 IECC can add as much as $31,000 to the price of a new home and that it would require up to 90 years for a home buyer to realize a payback on the added upfront cost of the home. Sen. Moran and the nation’s home builders are concerned that if VA were to adopt the 2021 IECC, it would prevent many of our nation’s veterans from purchasing a new home using a VA home loan.”

The full text of the letter can be found below.

Dear Secretary McDonough,

We write to raise significant concerns about the Department of Housing and Urban Development’s (HUD) and Department of Agriculture’s (USDA) recently adopted revised energy standards for newly constructed homes insured or guaranteed by their respective Departments.

We are particularly concerned with the impact of the agencies’ final determination, implementing the 2021 version of the International Energy Conservation Code (IECC), on veteran homebuyers. By only financing new homes if they are built to the 2021 IECC standards, HUD and USDA describe the potential for a market where “new construction for Federal Housing Administration borrowers would decline.” If adopted by the Department of Veterans Affairs (VA), we are concerned that the revised standards could negatively affect the availability, affordability, and competitiveness of VA home loans for veterans.

Recent estimates indicate that even a one thousand dollar increase in home prices would price over one hundred thousand Americans out of the housing market. As mortgage rates hover around seven percent, the revised standards could lead prospective homeowners to pay tens of thousands of dollars more over the course of a 30-year mortgage. Included in the Regulatory Impact Analysis, HUD and USDA rightly recognize that “lower-income households are less willing than higher-income ones to accept longer payback periods for energy-efficient investments.” Declining to finance any loans for new homes that do not meet these increased requirements, the agencies put accessible homeownership in jeopardy for thousands of veterans.

Both rental and housing costs have risen at the fastest rates in decades, and any proposals that raise the cost of home building must be meticulously examined. Additionally, it is our duty to ensure that veterans have robust access to VA-financed home loans. In turn, we respectfully call your attention to a directive included in the Senate’s Fiscal Year 2025 Military Construction and Veterans Affairs Appropriations Committee Report on the revised energy standards and look forward to VA’s evaluation of how adoption would impact costs for veteran homebuyers, including the availability, affordability, and competitiveness of VA home loans.

Boozman, Sheehy, Van Hollen introduce Bipartisan Legislation to assist veterans with home ownership

Boozman, Moran, Lankford, Blackburn, Cramer & Braun urge VA to protect VA home loans from costly energy conservation standards