This bill requires Fannie Mae and Freddie Mac to include a VA home loan eligibility disclaimer on residential loan applications and mandates a study to ensure lender compliance.
Tim Sheehy
Senator
MT
The VA Home Loan Awareness Act of 2025 mandates that Fannie Mae and Freddie Mac include a disclaimer on residential loan applications to inform veterans that they may be eligible for a VA home loan. Additionally, the bill requires the Comptroller General to conduct a study to ensure lenders are effectively implementing this disclosure.
VA Home Loan Awareness Act Mandates New Application Disclaimers and Compliance Checks by 2026
The VA Home Loan Awareness Act of 2025 aims to ensure that veterans don't leave money on the table when buying a house. The bill requires the Federal Housing Finance Agency (FHFA) to update the standard paperwork most people use when applying for a mortgage—the Uniform Residential Loan Application. Within six months of the bill becoming law, Fannie Mae and Freddie Mac must add a specific disclaimer directly below the question asking about military service. This new text will explicitly tell applicants: “If yes, you may qualify for a VA Home Loan. Consult your lender regarding eligibility.”
The Fine Print on the Front Lines
For a veteran or active-duty service member, this change acts as a digital tap on the shoulder. VA loans are often the best deal in town, offering $0 down payment options and lower interest rates, yet many buyers end up in conventional loans because they simply weren't prompted to ask about their benefits during the high-stress application process. By placing this reminder right next to the service history question, the bill ensures that anyone from a construction worker using their GI Bill benefits to a software engineer transitioning out of the military is prompted to have that conversation with their loan officer before locking in a less favorable rate.
Keeping Lenders Accountable
It’s one thing to change a form; it’s another to make sure banks actually use it. Section 2 of the bill puts teeth into this requirement by mandating a study by the Comptroller General. Within 18 months, a report must be delivered to Congress verifying whether at least 80 percent of lenders are actually using the updated forms with the disclaimer. This isn't just a suggestion for the industry—it’s a compliance check designed to see if the message is actually reaching the people it’s meant to help. For the average borrower, this means more transparency and a better shot at keeping more of their paycheck instead of handing it over to mortgage interest.