VALID Act of 2025

Key Points

• The bill requires lenders to give people looking for FHA loans a side-by-side comparison with VA loans. This helps veterans and service members see if they could get a better deal through the Department of Veterans Affairs before they sign up for a different type of mortgage.
• A new question about military service would be added to the standard home loan application used by most banks. This question must appear right above where the borrower signs their name to make sure it is not missed during the process.
• The goal is to prevent veterans from accidentally taking out more expensive loans when they qualify for VA benefits. VA loans often have lower interest rates and do not require a down payment, which can save families thousands of dollars over time.
• The Federal Housing Finance Agency would have six months to create the new rules and update the forms. Lenders would not be forced to prove a borrower is eligible for a VA loan, but they must provide the general information so the borrower can check for themselves.

Impact Analysis

Govbase has not yet run an impact analysis on this legislation.