Homes for Heroes Act

The Homes for Heroes Act would raise how much of a mortgage the VA can back for eligible veterans. It increases the VA guarantee from 25% to 37.5% of the Freddie Mac conforming loan limit, which could help some veterans qualify for larger loans or reduce what they need to put down. It also updates the fees the VA charges when a borrower refinances to a lower interest rate through the VA’s interest rate reduction program.

Key points:

• Who is affected: Veterans who use VA home loans and veterans refinancing to a lower rate through the VA.
• What changes: The VA guarantee rises to 37.5% of the Freddie Mac conforming loan limit; fees for interest rate reduction refinancing loans are adjusted.
• When: The text provided does not specify an effective date.