H.R. 8532 — VA Home Loan Affordability Act

This section modifies the Department of Veterans Affairs housing loan program under title 38, United States Code, to align with Federal Housing Administration requirements. (1) It prohibits the Secretary from requiring third-party documentation of lender fees paid by veteran borrowers in regulations. (2) It authorizes the Secretary to waive appraisals for refinancings of VA loans and reduces the minimum interest rate spread for adjustable-rate mortgages to 75 basis points (from 200 basis points). (3) It expands guaranteed loans for condominiums by removing the requirement that developments or projects receive prior Secretarial approval under prescribed criteria. (4) It caps closing costs actually paid by the veteran at 1.5 percent of the loan amount and seller fees at six percent of the outstanding loan balance. (5) It requires the Secretary to review and prescribe debt-to-income ratios at least once every two years. (6) It revises appraiser qualification standards to require a state-issued certificate or license. (7) It directs the Secretary to review and update minimum property requirements regulations within 90 days. (8) It requires the Secretary to submit a plan to modernize information technology used to administer housing loans under chapter 37 within 180 days.