H.R. 7009 — Home Affordability for Guard and Reserve Act

This section expands the definition of “active duty” for VA housing loan guaranty eligibility (38 U.S.C. §3701(b)) to include, for reserve components, service on active duty, inactive-duty training, or annual training duty (as defined in 10 U.S.C. §101(d)), or active duty under specified mobilization authorities (10 U.S.C. §§688, 12301(a), 12301(d), 12301(g), 12301(h), 12302, 12304, 12304a, 12304b; 14 U.S.C. §713) excluding inactive-duty training or annual training; and, for Army National Guard or Air National Guard members, additional full-time service for organizing, administering, recruiting, instructing, or training the National Guard, full-time National Guard duty, or active duty (as defined in 32 U.S.C. §101). (VA housing loan guarantees support home purchases and refinancing for eligible servicemembers, veterans, and spouses.) The amendments apply retroactively to service performed on or after September 11, 2001.

This section expands eligibility for VA home loan guarantees under chapter 37 of title 38, U.S. Code, to individuals not otherwise eligible who have completed at least 14 days of active duty service under specified reserve component or National Guard authorities (38 U.S.C. 3701(b)(9)(B) or (C)) and entry level and skill training. It (1) provides such individuals basic entitlement to the program, (2) imposes an additional 1 percentage point loan fee on their loans (added to the standard fee table percentages), and (3) requires the Secretary of Veterans Affairs to notify applicable reserve component and National Guard members of this eligibility upon completing such training after enactment. (The VA home loan guaranty program enables eligible veterans and servicemembers to obtain mortgages with no down payment and favorable terms.)