Sec. 6. LOANS GUARANTEED UNDER HOME LOAN PROGRAM OF DEPARTMENT OF VETERANS AFFAIRS
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## SEC. 6 LOANS GUARANTEED UNDER HOME LOAN PROGRAM OF DEPARTMENT OF VETERANS AFFAIRS ###
(a)Adjustment of Loan Limit ####
(1)In general Section 3703(a)(1) of title 38, United States Code, is amended— #####
(A)in subparagraph (A)— ######
(i)in clause (i)(IV), by striking “the lesser of the maximum guaranty amount (as defined in subparagraph (C)) or”; and ######
(ii)in clause (ii), by striking “subparagraph
(B)of this paragraph” and inserting “subparagraph
(B)or (C)”; #####
(B)in subparagraph (B)— ######
(i)by striking “The maximum” and inserting “With respect to loans described in subclauses (I), (II), or
(III)of subparagraph (A)(i), the maximum”; and ######
(ii)by striking “or in the case” and all that follows through “subparagraph (C)),”; and #####
(C)by striking subparagraph
(C)and inserting the following new subparagraph (C): > > ##### “(C) > > > ######
(i)> > With respect to loans described in subclause
(IV)of subparagraph (A)(i) made to a veteran not covered by clause (ii), the maximum amount of guaranty entitlement available to the veteran shall be 25 percent of the loan. > > > ###### “(ii) > > With respect to loans described in subclause
(IV)of subparagraph (A)(i) made to a covered veteran, the maximum amount of guaranty entitlement available to the veteran shall be 25 percent of the Freddie Mac conforming loan limit, reduced by the amount of entitlement previously used by the veteran under this chapter and not restored as a result of the exclusion in section 3702(b) of this title. > > > ###### “(iii) > > In this subparagraph: > > > ###### “(I) > > The term ‘covered veteran’ means a veteran who has previously used entitlement under this chapter and for whom the full amount of entitlement so used has not been restored as a result of the exclusion in section 3702(b) of this title. > > > ###### “(II) > > The term ‘Freddie Mac conforming loan limit’ means the limit determined under section 305(a)(2) of the Federal Home Loan Mortgage Corporation Act (12 U.S.C. 1454(a)(2)) for a single-family residence, as adjusted for the year involved. ” > . ####
(2)Loans to native american veterans Section 3762(c) of such title is amended— #####
(A)by striking paragraph (1); and #####
(B)by redesignating paragraphs
(2)and
(3)as paragraphs
(1)and (2), respectively. ####
(3)Conforming amendment Section 3710(d)(4) of such title is amended by striking “section 3703(a)(1)(B) of this title” and inserting “subparagraph
(B)or
(C)of section 3703(a)(1) of this title”. ###
(b)Adjustment of Loan Fees Section 3729(b)(2) of title 38, United States Code, is amended by striking the loan fee table and inserting the following:"“Type of loanActive duty veteranReservistOther obligor(A)(i) Initial loan described in section 3710(a) to purchase or construct a dwelling with 0-down, or any other initial loan described in section 3710(a) other than with 5-down or 10-down (closed on or after October 1, 2004, and before January 1, 2020)2.152.40NA(A)(ii) Initial loan described in section 3710(a) to purchase or construct a dwelling with 0-down, or any other initial loan described in section 3710(a) other than with 5-down or 10-down (closed on or after January 1, 2020, and before January 1, 2022)2.302.30NA(A)(iii) Initial loan described in section 3710(a) to purchase or construct a dwelling with 0-down, or any other initial loan described in section 3710(a) other than with 5-down or 10-down (closed on or after January 1, 2022, and before October 1, 2029)2.152.15NA(A)(iv) Initial loan described in section 3710(a) to purchase or construct a dwelling with 0-down, or any other initial loan described in section 3710(a) other than with 5-down or 10-down (closed on or after October 1, 2029)1.401.40NA(B)(i) Subsequent loan described in section 3710(a) to purchase or construct a dwelling with 0-down, or any other subsequent loan described in section 3710(a) (closed on or after October 1, 2004, and before January 1, 2020)3.303.30NA(B)(ii) Subsequent loan described in section 3710(a) to purchase or construct a dwelling with 0-down, or any other subsequent loan described in section 3710(a) (closed on or after January 1, 2020, and before January 1, 2022)3.603.60NA(B)(iii) Subsequent loan described in section 3710(a) to purchase or construct a dwelling with 0-down, or any other subsequent loan described in section 3710(a) (closed on or after January 1, 2022, and before October 1, 2029)3.303.30NA(B)(iv) Subsequent loan described in section 3710(a) to purchase or construct a dwelling with 0-down, or any other subsequent loan described in section 3710(a) (closed on or after October 1, 2029)1.251.25NA(C)(i) Loan described in section 3710(a) to purchase or construct a dwelling with 5-down (closed before January 1, 2020)1.501.75NA(C)(ii) Loan described in section 3710(a) to purchase or construct a dwelling with 5-down (closed on or after January 1, 2020, and before January 1, 2022)1.651.65NA(C)(iii) Loan described in section 3710(a) to purchase or construct a dwelling with 5-down (closed on or after January 1, 2022, and before October 1, 2029)1.501.50NA(C)(iv) Loan described in section 3710(a) to purchase or construct a dwelling with 5-down (closed on or after October 1, 2029)0.750.75NA(D)(i) Loan described in section 3710(a) to purchase or construct a dwelling with 10-down (closed before January 1, 2020)1.251.50NA(D)(ii) Loan described in section 3710(a) to purchase or construct a dwelling with 10-down (closed on or after January 1, 2020, and before January 1, 2022)1.401.40NA(D)(iii) Loan described in section 3710(a) to purchase or construct a dwelling with 10-down (closed on or after January 1, 2022, and before October 1, 2029)1.251.25NA(D)(iv) Loan described in section 3710(a) to purchase or construct a dwelling with 10-down (closed on or after October 1, 2029)0.500.50NA(E) Interest rate reduction refinancing loan0.500.50NA(F) Direct loan under section 37111.001.00NA(G) Manufactured home loan under section 3712 (other than an interest rate reduction refinancing loan)1.001.00NA(H) Loan to Native American veteran under section 3762 (other than an interest rate reduction refinancing loan)1.251.25NA(I) Loan assumption under section 37140.500.500.50(J) Loan under section 3733(a)2.252.252.25”". ###
(c)Waiver of Fees for Purple Heart Recipients Section 3729(c)(1) of such title is amended— ####
(1)by striking “or from a surviving spouse” and inserting “, from a surviving spouse”; and ####
(2)by inserting before the period at the end the following: “, or from a member of the Armed Forces who is serving on active duty and who provides, on or before the date of loan closing, evidence of having been awarded the Purple Heart”. ###
(d)Effective Date **[**[38 U.S.C. 3703 note](/us/usc/t38/s3703)**]** The amendments made by this section shall apply with respect to a loan guaranteed under section 3710 of title 38, United States Code, on or after January 1, 2020. ###
(e)Guidance **[**[38 U.S.C. 3703 note](/us/usc/t38/s3703)**]** Notwithstanding section 501 of title 38, United States Code, the Secretary of Veterans Affairs may issue guidance to implement this section before prescribing new regulations under sections 3703, 3729, and 3762 of such title, as amended by this section.
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Sec. 6
LOANS GUARANTEED UNDER HOME LOAN PROGRAM OF DEPARTMENT OF VETERANS AFFAIRS
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