Homes for Heroes Act

H.R. 2791 would modify the Department of Veterans Affairs home loan guarantee program, which helps eligible veterans obtain better loan terms when purchasing or refinancing homes. The bill has two main provisions. First, it would increase the maximum amount of loan guarantee available to veterans who already have an outstanding VA-guaranteed loan and want to purchase a second home, raising the guarantee from 25 percent to 37.5 percent of the conforming loan limit. This would allow approximately 2,100 veterans per year to access larger guaranteed amounts when obtaining subsequent home loans. Second, the bill would temporarily reduce the refinancing fee for VA interest rate reduction refinancing loans from 0.5 percent to 0.25 percent between December 31, 2025, and December 31, 2027, making it less expensive for veterans to refinance during that period. The bill would offset this reduced fee by increasing the refinancing fee to 0.75 percent from October 1, 2031, through December 31, 2035. According to the Congressional Budget Office, enacting the bill would decrease net federal spending by $85 million over the 2025-2035 period. The bill has been approved by the House Committee on Veterans' Affairs and is eligible for a floor vote.