Department of Veterans Affairs Loan Guaranty Cost Reduction Act of 2007

Department of Veterans Affairs Loan Guaranty Cost Reduction Act of 2007 - Increases the maximum guarantee amount regarding home purchase or construction loans to certain veterans.

Permits guaranteeing certain refinancing loans for 100% (currently, 90%) of reasonable value

Modifies requirements regarding the fees veterans pay for the loan guarantees.

Sets the maximum guarantee amount if the dwelling is determined by the Secretary of Veterans Affairs to be affordable housing and the veteran is the first owner-occupant.

Allows amounts deposited in the existing Veterans Housing Benefit Program Fund that are not used for loan guarantees to be used to reduce loan closing costs.