VA Home Loan GRACE Act of 2025

The Veteran Affairs Home Loan Guaranty Resiliency And Concurrency Enhancement Act of 2025 aims to amend title 38, United States Code, to enhance the Department of Veterans Affairs (VA) home loan program. Its primary purpose is to increase the maximum guaranty amount available for loans made to eligible veterans, particularly for those designated as 'covered veterans.' The bill introduces a revised table for calculating guaranty entitlement, which now often references a percentage of the Freddie Mac conforming loan limit for covered veterans, depending on the loan amount and closure date. The legislation also modifies provisions for loans involving two or more veterans , detailing how guaranty entitlement is calculated in such cases, with a specific exception for married couples. Furthermore, it establishes a new civil penalty of up to $23,607 for any veteran who knowingly makes a false certification under the loan guaranty provisions. Finally, the bill extends the applicability of current VA loan fee rates by striking 'April 7, 2023' and inserting 'April 7, 2031,' ensuring these rates remain in effect for a longer period. The amendments made by this Act are set to take effect 180 days after its enactment.