FOR IMMEDIATE RELEASE
July 27, 2023
CONTACTS:
Sue Walitsky/Sarita Williams (Cardin)
Matt Wester (Boozman)
Cardin, Boozman Join Forces to Ensure Veterans and Servicemembers Are informed About Home Loan Benefits That Could Save Them Tens of Thousands of Dollars
As the Federal Reserve raises interest rates, the cost savings for Veterans’ Affairs home loans could make a substantial difference in affordability.
WASHINGTON – U.S. Senators Ben Cardin (D-Md.) and John Boozman (R-Ark.) have introduced legislation, the VA Loan Informed Disclosure Act of 2023 (VALID Act/S. S.2496), that will require a side-by-side comparison between conventional, Federal Housing Administration (FHA), and Veterans’ Affairs (VA) home loans to be included in the U.S. Department of Housing’s “Informed Consumer Choice Disclosure Notice.” VA home loans can offer veterans, active duty, reservists, and national guard members lower down payments, interest rates, and closing costs, saving them tens of thousands of dollars over the life of the loan. Despite these benefits, overall usage of VA home loans is surprisingly low, with only 10 to 15 percent of veterans reported as using the benefit.
“Buying a home often is the most expensive purchase an individual makes in their lifetime. For our veterans and servicemembers who have earned these benefits through service to our nation, we need to make it easier for them to learn about and access the savings they deserve. Far too many are missing out on tens of thousands of dollars of savings; we aim to change that by making the disclosures and comparisons clear and upfront,” said Senator Cardin.
“We can help fulfill the dream of homeownership by informing veterans about the benefits they have earned. VA’s home loans are underutilized, but this bipartisan legislation will provide the men and women who served in uniform another opportunity to learn about resources available to them to save money and meet the needs of their families,” Senator Boozman said.
The VALID Act (S.2496), will provide potential homebuyers a comprehensive picture of veterans’ financing options through a side-by-side comparison of conventional, FHA, and VA home loans. This legislation will help veterans make more informed choices about their financing options and potentially increase the utilization of VA home loans.
“As part of its ongoing commitment to veterans, VAREP applauds Senators Ben Cardin and John Boozman for support of expansion of legislation to include VA loans in the Informed Consumer Choice Disclosure, addressing a key informational gap. This change will empower veterans and servicemembers to make fully informed home loan decisions as they set their sights on the American dream of homeownership,” said G2 Varrato, National Legislative Committee Director of the Veterans Association of Real Estate Professionals (VAREP).
The bill text may be downloaded here.
Below is a sample of a current Informed Consumer Choice Disclosure Notice. The VALID Act would add an additional column for VA home loans.
