This bill expands Department of Veterans Affairs (VA) home loan eligibility for certain members of the National Guard and military reserves by broadening the definition of "active duty" and creating a pathway for those with 14 days of service to qualify, potentially with an increased loan fee.
Tom Barrett
Representative
MI-7
The Home Affordability for Guard and Reserve Act expands eligibility for VA-guaranteed home loans to more members of the National Guard and Reserves by broadening the definition of "active duty." This change retroactively covers qualifying service performed on or after September 11, 2001. Additionally, the bill creates a path to eligibility for certain Guard and Reserve members who complete at least 14 days of active duty, subject to an increased loan fee.
VA Home Loan Eligibility Expands for Guard and Reserve, Retroactive to 9/11
Alright, let's talk about something that could seriously change the game for our National Guard and Reserve members looking to buy a home. This new piece of legislation, dubbed the 'Home Affordability for Guard and Reserve Act,' is essentially widening the gate for who qualifies for those sweet VA-backed home loans. Think of it as the VA finally catching up to the diverse ways our service members contribute, not just traditional 'active duty.'
Opening Doors for Service
So, what's the big deal? Well, this bill is specifically tweaking the definition of 'active duty' when it comes to VA home loan eligibility. Previously, if you were in the Guard or Reserves, your service had to fit a pretty narrow box to count towards a VA loan. This new bill expands that significantly. For example, it now includes various types of active duty, inactive-duty training, and annual training duties for reservists. For the Army and Air National Guard, it goes even further, counting full-time service for things like organizing, administering, recruiting, instructing, or even just performing full-time National Guard duty. This means more of the time these folks spend serving our country will actually count towards getting a home loan.
A Look Back, A Step Forward
One of the coolest parts? This isn't just for future service. The expanded definition applies retroactively to any qualifying service performed on or after September 11, 2001. So, if you've been serving since then and thought you didn't quite hit the mark for a VA loan, it's definitely worth checking again. This retroactive clause (Section 2) acknowledges years of service that might have been overlooked for this specific benefit.
The New Pathway to Homeownership
But wait, there's more! The bill also carves out a new eligibility path for certain Guard and Reserve members who might not qualify under the broader 'active duty' definition. If you've completed at least 14 days of active-duty service and finished your required entry-level and skill training, you could now be eligible for a VA home loan (Section 3). This is a big win for those who serve shorter stints but still commit significant time and effort.
Now, for a quick reality check on that new pathway: if you qualify solely through this new route, there's a catch. You'll be looking at an additional 1.00% added to the standard VA loan fee (Section 3). While it's an extra cost, it's still a pathway to a valuable benefit that wasn't there before. The VA is also mandated to notify every eligible member who completes their training after this law passes about their newfound eligibility, which is a smart move to cut through the noise and get the word out directly.