New HOME Act Boosts Veteran Home Loans: Mandates Financial Counseling and Adapted Housing Database

The Heroes Owning and Materializing Equity Act of 2025, or the HOME Act, is all about making the VA home loan benefit work better and smarter for veterans. It introduces key updates aimed at improving financial stability, making accessible housing easier to find, and ensuring veterans in U.S. Territories don’t get overlooked.

This bill starts by tightening up the rules for lenders who issue VA-backed home loans. When calculating a veteran’s “residual income”—that crucial amount of cash left over after housing costs—the VA must now specifically update its guidance to lenders to include nonprofit financial service organizations in the consideration set (SEC. 2). This might sound like bureaucratic fluff, but it matters: it means lenders should be getting a more accurate, holistic view of a veteran's actual disposable income, potentially helping more veterans qualify fairly.

The Financial Safety Net: Voluntary Counseling

Section 2 also introduces a significant new safeguard: the VA Secretary must now coordinate with veteran advocacy nonprofits to make voluntary financial counseling available to veterans getting a VA-guaranteed loan. Think of this as the VA offering a free financial check-up before you take on a massive 30-year commitment. It’s not mandatory, but for a veteran transitioning to civilian life or navigating the complex housing market, having access to expert, unbiased advice could be the difference between financial success and struggling to make payments. This provision recognizes that a successful home loan isn't just about qualifying; it’s about long-term financial health.

Cutting the Search Time for Accessible Homes

For disabled veterans, the search for a truly accessible home can be a nightmare. Section 3 aims to fix this by requiring the VA to create a new, centralized database of adapted housing for sale. This isn't just a list of random accessible homes; it specifically lists properties that have already been modified under existing VA programs and whose sellers opt to list them (SEC. 3). For a veteran requiring specific modifications, this database cuts out months of searching and potentially expensive post-sale renovations. Instead of wading through general listings, they get a targeted list of move-in ready, accessible homes. The success of this feature, however, relies entirely on sellers voluntarily participating in the listing process.

No Veteran Left Behind in the Territories

Finally, the HOME Act addresses a long-standing issue of access for veterans living outside the mainland U.S. The bill mandates that the VA actively conduct outreach to veterans residing in U.S. Territories—places like Puerto Rico, Guam, and the U.S. Virgin Islands (SEC. 4). The VA can no longer just wait for these veterans to call; they must proactively inform them about their eligibility for specific housing benefits, ensuring that distance and lack of local information don't prevent them from accessing the aid they earned. This is a crucial step toward equitable service delivery, ensuring that benefits follow the veteran, regardless of geography.