Introduced in House — H.R. 2723

119th CONGRESS

1st Session

H. R. 2723

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.

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:
Type of Loan Maximum Guaranty Maximum Amount of Guaranty Entitlement
(i)(I) Any loan of not more than $45,000 to a veteran who is not a covered veteran 50 percent of the loan $36,000
(i)(II) Any loan of not more than $45,000 to a covered veteran (closed before April 7, 2031) 50 percent of the loan 50 percent of the Freddie Mac conforming loan limit, reduced by the amount of entitlement not restored
(i)(III) Any loan of not more than $45,000 to a covered veteran (closed on or after April 7, 2031) 50 percent of the loan 25 percent of the Freddie Mac conforming loan limit, reduced by the amount of entitlement not restored
(ii)(I) Any loan of more than $45,000, but not more than $56,250, to a veteran who is not a covered veteran $22,500 $36,000
(ii)(II) Any loan of more than $45,000, but not more than $56,250, to a covered veteran (closed before April 7, 2031) $22,500 50 percent of the Freddie Mac conforming loan limit, reduced by the amount of entitlement not restored
(ii)(III) Any loan of more than $45,000, but not more than $56,250, to a covered veteran (closed on or after April 7, 2031) $22,500 25 percent of the Freddie Mac conforming loan limit, reduced by the amount of entitlement not restored
(iii)(I) Except as provided in clause (iv)(I), in the case of any loan of more than $56,250, to a veteran who is not a covered veteran the lesser of $36,000 or 40 percent of the loan $36,000
(iii)(II) Except as provided in clause (iv)(II), in the case of any loan of more than $56,250, to a covered veteran (closed before April 7, 2031) the lesser of $36,000 or 40 percent of the loan 50 percent of the Freddie Mac conforming loan limit, reduced by the amount of entitlement not restored
(iii)(III) Except as provided in clause (iv)(III), in the case of any loan of more than $56,250, to a covered veteran (closed on or after April 7, 2031) the lesser of $36,000 or 40 percent of the loan 25 percent of the Freddie Mac conforming loan limit, reduced by the amount of entitlement not restored
(iv)(I) Any loan of more than $144,000 for a purpose specified in clause (1), (2), (3), (5), (6), or (8) of section 3710(a) of this title, to a veteran who is not a covered veteran 25 percent of the loan 25 percent of the loan
(iv)(II) Any loan of more than $144,000 for a purpose specified in clause (1), (2), (3), (5), (6), or (8) of section 3710(a) of this title, to a covered veteran (closed before April 7, 2031) 25 percent of the loan 50 percent of the Freddie Mac conforming loan limit, reduced by the amount of entitlement not restored
(iv)(III) Any loan of more than $144,000 for a purpose specified in clause (1), (2), (3), (5), (6), or (8) of section 3710(a) of this title, to a covered veteran (closed on or after April 7, 2031) 25 percent of the loan 25 percent of the Freddie Mac conforming loan limit, reduced by the amount of entitlement not restored

Type of Loan	Maximum Guaranty	Maximum Amount of Guaranty Entitlement
(i)(I) Any loan of not more than $45,000 to a veteran who is not a covered veteran	50 percent of the loan	$36,000
(i)(II) Any loan of not more than $45,000 to a covered veteran (closed before April 7, 2031)	50 percent of the loan	50 percent of the Freddie Mac conforming loan limit, reduced by the amount of entitlement not restored
(i)(III) Any loan of not more than $45,000 to a covered veteran (closed on or after April 7, 2031)	50 percent of the loan	25 percent of the Freddie Mac conforming loan limit, reduced by the amount of entitlement not restored
(ii)(I) Any loan of more than $45,000, but not more than $56,250, to a veteran who is not a covered veteran	$22,500	$36,000
(ii)(II) Any loan of more than $45,000, but not more than $56,250, to a covered veteran (closed before April 7, 2031)	$22,500	50 percent of the Freddie Mac conforming loan limit, reduced by the amount of entitlement not restored
(ii)(III) Any loan of more than $45,000, but not more than $56,250, to a covered veteran (closed on or after April 7, 2031)	$22,500	25 percent of the Freddie Mac conforming loan limit, reduced by the amount of entitlement not restored
(iii)(I) Except as provided in clause (iv)(I), in the case of any loan of more than $56,250, to a veteran who is not a covered veteran	the lesser of $36,000 or 40 percent of the loan	$36,000
(iii)(II) Except as provided in clause (iv)(II), in the case of any loan of more than $56,250, to a covered veteran (closed before April 7, 2031)	the lesser of $36,000 or 40 percent of the loan	50 percent of the Freddie Mac conforming loan limit, reduced by the amount of entitlement not restored
(iii)(III) Except as provided in clause (iv)(III), in the case of any loan of more than $56,250, to a covered veteran (closed on or after April 7, 2031)	the lesser of $36,000 or 40 percent of the loan	25 percent of the Freddie Mac conforming loan limit, reduced by the amount of entitlement not restored
(iv)(I) Any loan of more than $144,000 for a purpose specified in clause (1), (2), (3), (5), (6), or (8) of section 3710(a) of this title, to a veteran who is not a covered veteran	25 percent of the loan	25 percent of the loan
(iv)(II) Any loan of more than $144,000 for a purpose specified in clause (1), (2), (3), (5), (6), or (8) of section 3710(a) of this title, to a covered veteran (closed before April 7, 2031)	25 percent of the loan	50 percent of the Freddie Mac conforming loan limit, reduced by the amount of entitlement not restored
(iv)(III) Any loan of more than $144,000 for a purpose specified in clause (1), (2), (3), (5), (6), or (8) of section 3710(a) of this title, to a covered veteran (closed on or after April 7, 2031)	25 percent of the loan	25 percent of the Freddie Mac conforming loan limit, reduced by the amount of entitlement not restored

;

(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.