VALOR Act

Key Points

• This bill, introduced by Mr. Levin, helps veterans who are waiting for the government to process their disability claims while they are buying a home. Usually, veterans with service-connected disabilities do not have to pay the standard funding fees for VA home loans, which can cost thousands of dollars.
• Under current rules, if a veteran's disability claim is still pending when they get a mortgage, they often have to pay the fee upfront. This policy would require the Department of Veterans Affairs to refund that money if the veteran's disability claim is eventually approved.
• The government would be required to either send a refund check directly to the veteran or apply the amount as a credit to reduce their home loan balance. This ensures that veterans are not financially penalized just because the government took a long time to finish their paperwork.
• The bill clarifies that any fees collected from veterans who should have been exempt must be treated as overpayments. This change aims to fix a gap in the law where veterans lose out on benefits simply because of the timing of their disability rating.

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