NAR Seeks Removal of VA Home Loan Fee Increases in House-Passed Veterans Bill

On Veterans’ Day, the House has passed H.R. 9237, the Take Care of America's Veterans Act, a broad package of veterans benefits legislation that would raise two fees in the VA home loan program to help pay for new benefits. NAR is working with House and Senate lawmakers to remove the fee increases as the bill moves to the Senate.

The bill would nearly triple the fee on Interest Rate Reduction Refinance Loans (IRRRLs), the VA's streamlined refinance option, from 0.50 percent to 1.42 percent. It would also double the fee on VA loan assumptions, from 0.50 percent to 1.00 percent.

NAR sent a letter to House leadership urging lawmakers to remove the fee increases. NAR made clear that it supports the veterans’ benefits in the bill but objects to how they are paid for, writing that “Congress should fund these benefits directly rather than shifting the cost onto veterans seeking to buy or refinance a home.” The letter also pointed out that assumptions and IRRRLs can help veterans lower their housing costs. An assumption can let a buyer take over an existing VA loan with a below-market interest rate, while an IRRRL lets a current VA borrower refinance when rates drop.