[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[H.R. 2723 Introduced in House (IH)]
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119th CONGRESS
1st Session
H. R. 2723
To amend title 38, United States Code, to increase the maximum guaranty
amount for loans made to certain veterans under the laws administered
by the Secretary of Veterans Affairs, and for other purposes.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
April 8, 2025
Mr. Kennedy of New York (for himself and Ms. Brownley) introduced the
following bill; which was referred to the Committee on Veterans'
Affairs
_______________________________________________________________________
A BILL
To amend title 38, United States Code, to increase the maximum guaranty
amount for loans made to certain veterans under the laws administered
by the Secretary of Veterans Affairs, and for other purposes.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Veteran Affairs Home Loan Guaranty
Resiliency And Concurrency Enhancement Act of 2025'' or the ``VA Home
Loan GRACE Act of 2025''.
SEC. 2. BASIC PROVISIONS RELATING TO LOAN GUARANTY AND INSURANCE.
(a) In General.--Section 3703(a)(1) of title 38, United States
Code, is amended--
(1) in subparagraph (A)--
(A) by striking ``Any'' and inserting ``Except as
provided in subparagraphs (C) and (D), any''; and
(B) by striking ``the lesser of'' and all that
follows through the period at the end of clause (ii)
and inserting ``the lesser of the maximum guaranty or
the maximum amount of guaranty entitlement available to
the veteran, as specified in the table in subparagraph
(B).'';
(2) by striking subparagraph (B) and inserting the
following new subparagraph (B):
``(B) The table referred to in subparagraph (A) is as follows:
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Maximum
``Type of Loan Guaranty Maximum Amount of Guaranty Entitlement
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(i)(I) Any loan of not more than $45,000 to a 50 percent $36,000
veteran who is not a covered veteran of the loan
(i)(II) Any loan of not more than $45,000 to a 50 percent 50 percent of the Freddie Mac conforming loan
covered veteran (closed before April 7, 2031) of the loan limit, reduced by the amount of entitlement not
restored
(i)(III) Any loan of not more than $45,000 to a 50 percent 25 percent of the Freddie Mac conforming loan
covered veteran (closed on or after April 7, of the loan limit, reduced by the amount of entitlement not
2031) restored
(ii)(I) Any loan of more than $45,000, but not $22,500 $36,000
more than $56,250, to a veteran who is not a
covered veteran
(ii)(II) Any loan of more than $45,000, but not $22,500 50 percent of the Freddie Mac conforming loan
more than $56,250, to a covered veteran (closed limit, reduced by the amount of entitlement not
before April 7, 2031) restored
(ii)(III) Any loan of more than $45,000, but not $22,500 25 percent of the Freddie Mac conforming loan
more than $56,250, to a covered veteran (closed limit, reduced by the amount of entitlement not
on or after April 7, 2031) restored
(iii)(I) Except as provided in clause (iv)(I), in the lesser $36,000
the case of any loan of more than $56,250, to a of $36,000
veteran who is not a covered veteran or 40
percent of
the loan
(iii)(II) Except as provided in clause (iv)(II), the lesser 50 percent of the Freddie Mac conforming loan
in the case of any loan of more than $56,250, to of $36,000 limit, reduced by the amount of entitlement not
a covered veteran (closed before April 7, 2031) or 40 restored
percent of
the loan
(iii)(III) Except as provided in clause the lesser 25 percent of the Freddie Mac conforming loan
(iv)(III), in the case of any loan of more than of $36,000 limit, reduced by the amount of entitlement not
$56,250, to a covered veteran (closed on or or 40 restored
after April 7, 2031) percent of
the loan
(iv)(I) Any loan of more than $144,000 for a 25 percent 25 percent of the loan
purpose specified in clause (1), (2), (3), (5), of the loan
(6), or (8) of section 3710(a) of this title, to
a veteran who is not a covered veteran
(iv)(II) Any loan of more than $144,000 for a 25 percent 50 percent of the Freddie Mac conforming loan
purpose specified in clause (1), (2), (3), (5), of the loan limit, reduced by the amount of entitlement not
(6), or (8) of section 3710(a) of this title, to restored
a covered veteran (closed before April 7, 2031)
(iv)(III) Any loan of more than $144,000 for a 25 percent 25 percent of the Freddie Mac conforming loan
purpose specified in clause (1), (2), (3), (5), of the loan limit, reduced by the amount of entitlement not
(6), or (8) of section 3710(a) of this title, to restored'';
a covered veteran (closed on or after April 7,
2031)
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(3) in subparagraph (C)--
(A) by redesignating clause (iii) as subparagraph
(E); and
(B) by striking subparagraph (C) and inserting the
following:
``(C) Except as provided in subparagraph (D), when two or more
veterans use guaranty entitlement on a single loan, the loan is
automatically guaranteed by the United States in an amount not to
exceed the lesser of--
``(i) the maximum guaranty as specified in the table in
subparagraph (B); or
``(ii) the sum of the maximum amount of guaranty
entitlement available to each veteran, as calculated pursuant
to the table in subparagraph (B).'';
(4) by inserting after subparagraph (C) the following new
subparagraph (D):
``(D)(i) Except as provided in clause (ii), if two or more veterans
use guaranty entitlement on a single loan described in subparagraph
(B)(iv), the loan is automatically guaranteed by the United States in
an amount not to exceed the lesser of the following:
``(I) In the case of a loan for which--
``(aa) at least one veteran is a covered veteran,
25 percent of the Freddie Mac conforming loan limit; or
``(bb) no veteran is a covered veteran, 25 percent
of the loan.
``(II) The sum of the maximum amount of guaranty
entitlement available to each veteran, as calculated pursuant
to the table in subparagraph (B).
``(ii) Clause (i) shall not apply to a loan made to two veterans
who are married to each other if there are no other obligors on the
loan.''; and
(5) in subparagraph (E), as redesignated by paragraph
(3)(A)--
(A) by striking ``subparagraph'' and inserting
``paragraph''; and
(B) by redesignating subclauses (I) and (II) as
clauses (i) and (ii), respectively.
(b) Penalties for False Certification.--Section 3704(c) of such
title is amended by adding at the end the following new paragraph:
``(3) Any veteran who knowingly and materially makes a false
certification under paragraph (1) or (2) of this subsection shall be
liable to the United States Government for a civil penalty in an amount
not to exceed $23,607. A penalty under this paragraph may be in
addition to any other remedy available to the Secretary. All
determinations necessary to carry out this paragraph shall be made by
the Secretary.''.
(c) Loan Fees.--The loan fee table in section 3729(b)(2) of such
title is amended by striking ``April 7, 2023'' each place it appears
and inserting ``April 7, 2031''.
(d) Effective Date.--The amendments made by this Act shall take
effect on the date that is 180 days after the date of the enactment of
this Act.
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