I
119THCONGRESS
1
STSESSION H. R. 2723
To amend title 38, United States Code, to increase the maximum guaranty
amount for loans made to certain veterans under the laws administered
by the Secretary of Veterans Affairs, and for other purposes.
IN THE HOUSE OF REPRESENTATIVES
APRIL8, 2025
Mr. K
ENNEDYof New York (for himself and Ms. BROWNLEY) introduced the
following bill; which was referred to the Committee on Veterans’ Affairs
A BILL
To amend title 38, United States Code, to increase the
maximum guaranty amount for loans made to certain
veterans under the laws administered by the Secretary
of Veterans Affairs, and for other purposes.
Be it enacted by the Senate and House of Representa-1
tives of the United States of America in Congress assembled, 2
SECTION 1. SHORT TITLE. 3
This Act may be cited as the ‘‘Veteran Affairs Home 4
Loan Guaranty Resiliency And Concurrency Enhancement 5
Act of 2025’’ or the ‘‘VA Home Loan GRACE Act of 6
2025’’. 7
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SEC. 2. BASIC PROVISIONS RELATING TO LOAN GUARANTY 1
AND INSURANCE. 2
(a) I
NGENERAL.—Section 3703(a)(1) of title 38, 3
United States Code, is amended— 4
(1) in subparagraph (A)— 5
(A) by striking ‘‘Any’’ and inserting ‘‘Ex-6
cept as provided in subparagraphs (C) and (D), 7
any’’; and 8
(B) by striking ‘‘the lesser of’’ and all that 9
follows through the period at the end of clause 10
(ii) and inserting ‘‘the lesser of the maximum 11
guaranty or the maximum amount of guaranty 12
entitlement available to the veteran, as specified 13
in the table in subparagraph (B).’’; 14
(2) by striking subparagraph (B) and inserting 15
the following new subparagraph (B): 16
‘‘(B) The table referred to in subparagraph (A) is 17
as follows: 18
‘‘Type of Loan
Maximum
Guaranty
Maximum Amount of
Guaranty Entitlement
(i)(I) Any loan of not more
than $45,000 to a veteran
who is not a covered veteran
50 percent
of the loan
$36,000
(i)(II) Any loan of not more
than $45,000 to a covered
veteran (closed before April
7, 2031)
50 percent
of the loan
50 percent of the Freddie Mac
conforming loan limit, re-
duced by the amount of enti-
tlement not restored
(i)(III) Any loan of not more
than $45,000 to a covered
veteran (closed on or after
April 7, 2031)
50 percent
of the loan
25 percent of the Freddie Mac
conforming loan limit, re-
duced by the amount of enti-
tlement not restored
(ii)(I) Any loan of more than
$45,000, but not more than
$56,250, to a veteran who is
not a covered veteran
$22,500 $36,000
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‘‘Type of Loan
Maximum
Guaranty
Maximum Amount of
Guaranty Entitlement
(ii)(II) Any loan of more than
$45,000, but not more than
$56,250, to a covered veteran
(closed before April 7, 2031)
$22,500 50 percent of the Freddie Mac
conforming loan limit, re-
duced by the amount of enti-
tlement not restored
(ii)(III) Any loan of more than
$45,000, but not more than
$56,250, to a covered veteran
(closed on or after April 7,
2031)
$22,500 25 percent of the Freddie Mac
conforming loan limit, re-
duced by the amount of enti-
tlement not restored
(iii)(I) Except as provided in
clause (iv)(I), in the case of
any loan of more than
$56,250, to a veteran who is
not a covered veteran
the lesser of
$36,000 or
40 percent
of the loan
$36,000
(iii)(II) Except as provided in
clause (iv)(II), in the case of
any loan of more than
$56,250, to a covered veteran
(closed before April 7, 2031)
the lesser of
$36,000 or
40 percent
of the loan
50 percent of the Freddie Mac
conforming loan limit, re-
duced by the amount of enti-
tlement not restored
(iii)(III) Except as provided in
clause (iv)(III), in the case of
any loan of more than
$56,250, to a covered veteran
(closed on or after April 7,
2031)
the lesser of
$36,000 or
40 percent
of the loan
25 percent of the Freddie Mac
conforming loan limit, re-
duced by the amount of enti-
tlement not restored
(iv)(I) Any loan of more than
$144,000 for a purpose spec-
ified in clause (1), (2), (3),
(5), (6), or (8) of section
3710(a) of this title, to a vet-
eran who is not a covered
veteran
25 percent
of the loan
25 percent of the loan
(iv)(II) Any loan of more than
$144,000 for a purpose spec-
ified in clause (1), (2), (3),
(5), (6), or (8) of section
3710(a) of this title, to a cov-
ered veteran (closed before
April 7, 2031)
25 percent
of the loan
50 percent of the Freddie Mac
conforming loan limit, re-
duced by the amount of enti-
tlement not restored
(iv)(III) Any loan of more than
$144,000 for a purpose spec-
ified in clause (1), (2), (3),
(5), (6), or (8) of section
3710(a) of this title, to a cov-
ered veteran (closed on or
after April 7, 2031)
25 percent
of the loan
25 percent of the Freddie Mac
conforming loan limit, re-
duced by the amount of enti-
tlement not restored’’;
(3) in subparagraph (C)— 1
(A) by redesignating clause (iii) as sub-2
paragraph (E); and 3
(B) by striking subparagraph (C) and in-4
serting the following: 5
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‘‘(C) Except as provided in subparagraph (D), when 1
two or more veterans use guaranty entitlement on a single 2
loan, the loan is automatically guaranteed by the United 3
States in an amount not to exceed the lesser of— 4
‘‘(i) the maximum guaranty as specified in the 5
table in subparagraph (B); or 6
‘‘(ii) the sum of the maximum amount of guar-7
anty entitlement available to each veteran, as cal-8
culated pursuant to the table in subparagraph (B).’’; 9
(4) by inserting after subparagraph (C) the fol-10
lowing new subparagraph (D): 11
‘‘(D)(i) Except as provided in clause (ii), if two or 12
more veterans use guaranty entitlement on a single loan 13
described in subparagraph (B)(iv), the loan is automati-14
cally guaranteed by the United States in an amount not 15
to exceed the lesser of the following: 16
‘‘(I) In the case of a loan for which— 17
‘‘(aa) at least one veteran is a covered vet-18
eran, 25 percent of the Freddie Mac con-19
forming loan limit; or 20
‘‘(bb) no veteran is a covered veteran, 25 21
percent of the loan. 22
‘‘(II) The sum of the maximum amount of 23
guaranty entitlement available to each veteran, as 24
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calculated pursuant to the table in subparagraph 1
(B). 2
‘‘(ii) Clause (i) shall not apply to a loan made to two 3
veterans who are married to each other if there are no 4
other obligors on the loan.’’; and 5
(5) in subparagraph (E), as redesignated by 6
paragraph (3)(A)— 7
(A) by striking ‘‘subparagraph’’ and insert-8
ing ‘‘paragraph’’; and 9
(B) by redesignating subclauses (I) and 10
(II) as clauses (i) and (ii), respectively. 11
(b) P
ENALTIES FOR FALSECERTIFICATION.—Sec-12
tion 3704(c) of such title is amended by adding at the 13
end the following new paragraph: 14
‘‘(3) Any veteran who knowingly and materially 15
makes a false certification under paragraph (1) or (2) of 16
this subsection shall be liable to the United States Govern-17
ment for a civil penalty in an amount not to exceed 18
$23,607. A penalty under this paragraph may be in addi-19
tion to any other remedy available to the Secretary. All 20
determinations necessary to carry out this paragraph shall 21
be made by the Secretary.’’. 22
(c) L
OANFEES.—The loan fee table in section 23
3729(b)(2) of such title is amended by striking ‘‘April 7, 24
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2023’’ each place it appears and inserting ‘‘April 7, 1
2031’’. 2
(d) E
FFECTIVEDATE.—The amendments made by 3
this Act shall take effect on the date that is 180 days 4
after the date of the enactment of this Act. 5
Æ
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