VA Home Loan GRACE Act of 2025

This bill raises the maximum VA home loan guaranty and updates how the guaranty works when two or more veterans share one loan. It replaces old limits with a new table for the maximum guaranty and each veteran’s entitlement. For joint loans, the VA guarantee can be up to the lower of the table’s maximum or the total of the veterans’ entitlements. In some shared loans, the guaranty is capped at 25% of the Freddie Mac conforming loan limit if at least one borrower is a covered veteran, or 25% of the loan if none is a covered veteran. There is an exception for a loan made only to two married veterans.

It also creates a civil penalty, up to $23,607, for knowingly making a false certification about the loan, and updates VA loan fee dates to April 7, 2031. These changes start 180 days after the bill becomes law.

• Who is affected: Veterans using VA-backed home loans, especially co-borrowers.
• What changes: Higher guaranty limits; clearer rules for shared loans (including 25% caps in some cases); a new false-certification penalty; updated loan fee dates.
• When: 180 days after enactment.