I 

118TH CONGRESS 

2D SESSION H. R. 7388 

To amend title 38, United States Code, to increase the maximum guaranty 

amount for loans made to certain veterans under the laws administered 

by the Secretary of Veterans Affairs, and for other purposes. 

IN THE HOUSE OF REPRESENTATIVES 

FEBRUARY 15, 2024 

Ms. PORTER (for herself, Mr. KELLY of Mississippi, Mr. FITZPATRICK, and 

Ms. BROWNLEY) introduced the following bill; which was referred to the 

Committee on Veterans’ Affairs 

A BILL 

To amend title 38, United States Code, to increase the 

maximum guaranty amount for loans made to certain 

veterans under the laws administered by the Secretary 

of Veterans Affairs, and for other purposes. 

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled, 

3 SECTION 1. SHORT TITLE. 

4 This Act may be cited as the ‘‘Veteran Affairs Home 

5 Loan Guaranty Resiliency And Concurrency Enhancement 

6 Act of 2024’’ or the ‘‘VA Home Loan GRACE Act of 

7 2024’’. 


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1 SEC. 2. BASIC PROVISIONS RELATING TO LOAN GUARANTY 

2 AND INSURANCE. 

3 (a) IN GENERAL.—Section 3703(a)(1) of title 38, 

4 United States Code, is amended— 

5 (1) in subparagraph (A)— 

6 (A) by striking ‘‘Any’’ and inserting ‘‘Ex7 cept as provided in subparagraphs (C) and (D), 

8 any’’; and 

9 (B) by striking ‘‘the lesser of’’ and all that 

10 follows through the period at the end of clause 

11 (ii) and inserting ‘‘the lesser of the maximum 

12 guaranty or the maximum amount of guaranty 

13 entitlement available to the veteran, as specified 

14 in the table in subparagraph (B).’’; 

15 (2) by striking subparagraph (B) and inserting 

16 the following new subparagraph (B): 

17 ‘‘(B) The table referred to in subparagraph (A) is 

18 as follows: 

‘‘Type of Loan Maximum 

Guaranty 

Maximum Amount of 

Guaranty Entitlement 

(i)(I) Any loan of not more 

than $45,000 to a veteran 

who is not a covered veteran 

50 percent 

of the loan 

$36,000 

(i)(II) Any loan of not more 

than $45,000 to a covered 

veteran (closed before April 

7, 2030) 

50 percent 

of the loan 

50 percent of the Freddie Mac 

conforming loan limit, reduced by the amount of entitlement not restored 

(i)(III) Any loan of not more 

than $45,000 to a covered 

veteran (closed on or after 

April 7, 2030) 

50 percent 

of the loan 

25 percent of the Freddie Mac 

conforming loan limit, reduced by the amount of entitlement not restored 

(ii)(I) Any loan of more than 

$45,000, but not more than 

$56,250, to a veteran who is 

not a covered veteran 

$22,500 $36,000 


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•HR 7388 IH

‘‘Type of Loan Maximum 

Guaranty 

Maximum Amount of 

Guaranty Entitlement 

(ii)(II) Any loan of more than 

$45,000, but not more than 

$56,250, to a covered veteran 

(closed before April 7, 2030) 

$22,500 50 percent of the Freddie Mac 

conforming loan limit, reduced by the amount of entitlement not restored 

(ii)(III) Any loan of more than 

$45,000, but not more than 

$56,250, to a covered veteran 

(closed on or after April 7, 

2030) 

$22,500 25 percent of the Freddie Mac 

conforming loan limit, reduced by the amount of entitlement not restored 

(iii)(I) Except as provided in 

clause (iv)(I), in the case of 

any loan of more than 

$56,250, to a veteran who is 

not a covered veteran 

the lesser of 

$36,000 or 

40 percent 

of the loan 

$36,000 

(iii)(II) Except as provided in 

clause (iv)(II), in the case of 

any loan of more than 

$56,250, to a covered veteran 

(closed before April 7, 2030) 

the lesser of 

$36,000 or 

40 percent 

of the loan 

50 percent of the Freddie Mac 

conforming loan limit, reduced by the amount of entitlement not restored 

(iii)(III) Except as provided in 

clause (iv)(III), in the case of 

any loan of more than 

$56,250, to a covered veteran 

(closed on or after April 7, 

2030) 

the lesser of 

$36,000 or 

40 percent 

of the loan 

25 percent of the Freddie Mac 

conforming loan limit, reduced by the amount of entitlement not restored 

(iv)(I) Any loan of more than 

$144,000 for a purpose specified in clause (1), (2), (3), 

(5), (6), or (8) of section 

3710(a) of this title, to a veteran who is not a covered 

veteran 

25 percent 

of the loan 

25 percent of the loan 

(iv)(II) Any loan of more than 

$144,000 for a purpose specified in clause (1), (2), (3), 

(5), (6), or (8) of section 

3710(a) of this title, to a covered veteran (closed before 

April 7, 2030) 

25 percent 

of the loan 

50 percent of the Freddie Mac 

conforming loan limit, reduced by the amount of entitlement not restored 

(iv)(III) Any loan of more than 

$144,000 for a purpose specified in clause (1), (2), (3), 

(5), (6), or (8) of section 

3710(a) of this title, to a covered veteran (closed on or 

after April 7, 2030) 

25 percent 

of the loan 

25 percent of the Freddie Mac 

conforming loan limit, reduced by the amount of entitlement not restored’’; 

1 (3) in subparagraph (C)— 

2 (A) by redesignating clause (iii) as sub3 paragraph (E); and 

4 (B) by striking subparagraph (C) and in5 serting the following: 


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•HR 7388 IH

1 ‘‘(C) Except as provided in subparagraph (D), when 

2 two or more veterans use guaranty entitlement on a single 

3 loan, the loan is automatically guaranteed by the United 

4 States in an amount not to exceed the lesser of— 

5 ‘‘(i) the maximum guaranty as specified in the 

6 table in subparagraph (B); or 

7 ‘‘(ii) the sum of the maximum amount of guar8 anty entitlement available to each veteran, as cal9 culated pursuant to the table in subparagraph (B).’’; 

10 (4) by inserting after subparagraph (C) the fol11 lowing new subparagraph (D): 

12 ‘‘(D)(i) Except as provided in clause (ii), if two or 

13 more veterans use guaranty entitlement on a single loan 

14 described in subparagraph (B)(iv), the loan is automati15 cally guaranteed by the United States in an amount not 

16 to exceed the lesser of the following: 

17 ‘‘(I) In the case of a loan for which— 

18 ‘‘(aa) at least one veteran is a covered vet19 eran, 25 percent of the Freddie Mac con20 forming loan limit; or 

21 ‘‘(bb) no veteran is a covered veteran, 25 

22 percent of the loan. 

23 ‘‘(II) The sum of the maximum amount of 

24 guaranty entitlement available to each veteran, as 


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•HR 7388 IH

1 calculated pursuant to the table in subparagraph 

2 (B). 

3 ‘‘(ii) Clause (i) shall not apply to a loan made to two 

4 veterans who are married to each other if there are no 

5 other obligors on the loan.’’; and 

6 (5) in subparagraph (E), as redesignated by 

7 paragraph (3)(A)— 

8 (A) by striking ‘‘subparagraph’’ and insert9 ing ‘‘paragraph’’; and 

10 (B) by redesignating subclauses (I) and 

11 (II) as clauses (i) and (ii), respectively. 

12 (b) PENALTIES FOR FALSE CERTIFICATION.—Sec13 tion 3704(c) of such title is amended by adding at the 

14 end the following new paragraph: 

15 ‘‘(3) Any veteran who knowingly and materially 

16 makes a false certification under paragraph (1) or (2) of 

17 this subsection shall be liable to the United States Govern18 ment for a civil penalty in an amount not to exceed 

19 $23,607. A penalty under this paragraph may be in addi20 tion to any other remedy available to the Secretary. All 

21 determinations necessary to carry out this paragraph shall 

22 be made by the Secretary.’’. 

23 (c) LOAN FEES.—The loan fee table in section 

24 3729(b)(2) of such title is amended by striking ‘‘April 7, 


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1 2023’’ each place it appears and inserting ‘‘April 7, 

2 2030’’. 

3 (d) EFFECTIVE DATE.—The amendments made by 

4 this Act shall take effect on the date that is 180 days 

5 after the date of the enactment of this Act. 

Æ 


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