I 
119TH CONGRESS 
1ST SESSION H. R. 2723 
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 
APRIL 8, 2025 
Mr. KENNEDY of New York (for himself 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. 
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
SECTION 1. SHORT TITLE. 
This Act may be cited as the ‘‘Veteran Affairs Home 
Loan Guaranty Resiliency And Concurrency Enhancement 
Act of 2025’’ or the ‘‘VA Home Loan GRACE Act of 
2025’’. 
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SEC. 2. BASIC PROVISIONS RELATING TO LOAN GUARANTY 
AND INSURANCE. 
(a) IN GENERAL.—Section 3703(a)(1) of title 38, 
United States Code, is amended— 
(1) in subparagraph (A)— 
(A) by striking ‘‘Any’’ and inserting ‘‘Ex-
cept as provided in subparagraphs (C) and (D), 
any’’; and 
(B) by striking ‘‘the lesser of’’ and all that 
follows through the period at the end of clause 
(ii) and inserting ‘‘the lesser of the maximum 
guaranty or the maximum amount of guaranty 
entitlement available to the veteran, as specified 
in the table in subparagraph (B).’’; 
(2) by striking subparagraph (B) and inserting 
the following new subparagraph (B): 
‘‘(B) The table referred to in subparagraph (A) is 
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, 2031) 
50 percent 
of the loan 
50 percent of the Freddie Mac 
conforming loan limit, re-
duced by the amount of enti-
tlement not restored 
(i)(III) Any loan of not more 
than $45,000 to a covered 
veteran (closed on or after 
April 7, 2031) 
50 percent 
of the loan 
25 percent of the Freddie Mac 
conforming loan limit, re-
duced by the amount of enti-
tlement 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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‘‘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, 2031) 
$22,500 50 percent of the Freddie Mac 
conforming loan limit, re-
duced by the amount of enti-
tlement 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, 
2031) 
$22,500 25 percent of the Freddie Mac 
conforming loan limit, re-
duced by the amount of enti-
tlement 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, 2031) 
the lesser of 
$36,000 or 
40 percent 
of the loan 
50 percent of the Freddie Mac 
conforming loan limit, re-
duced by the amount of enti-
tlement 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, 
2031) 
the lesser of 
$36,000 or 
40 percent 
of the loan 
25 percent of the Freddie Mac 
conforming loan limit, re-
duced by the amount of enti-
tlement not restored 
(iv)(I) Any loan of more than 
$144,000 for a purpose spec-
ified in clause (1), (2), (3), 
(5), (6), or (8) of section 
3710(a) of this title, to a vet-
eran 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 spec-
ified in clause (1), (2), (3), 
(5), (6), or (8) of section 
3710(a) of this title, to a cov-
ered veteran (closed before 
April 7, 2031) 
25 percent 
of the loan 
50 percent of the Freddie Mac 
conforming loan limit, re-
duced by the amount of enti-
tlement not restored 
(iv)(III) Any loan of more than 
$144,000 for a purpose spec-
ified in clause (1), (2), (3), 
(5), (6), or (8) of section 
3710(a) of this title, to a cov-
ered veteran (closed on or 
after April 7, 2031) 
25 percent 
of the loan 
25 percent of the Freddie Mac 
conforming loan limit, re-
duced by the amount of enti-
tlement not restored’’; 
(3) in subparagraph (C)— 
(A) by redesignating clause (iii) as sub-
paragraph (E); and 
(B) by striking subparagraph (C) and in-
serting the following: 
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‘‘(C) Except as provided in subparagraph (D), when 
two or more veterans use guaranty entitlement on a single 
loan, the loan is automatically guaranteed by the United 
States in an amount not to exceed the lesser of— 
‘‘(i) the maximum guaranty as specified in the 
table in subparagraph (B); or 
‘‘(ii) the sum of the maximum amount of guar-
anty entitlement available to each veteran, as cal-
culated pursuant to the table in subparagraph (B).’’; 
(4) by inserting after subparagraph (C) the fol-
lowing new subparagraph (D): 
‘‘(D)(i) Except as provided in clause (ii), if two or 
more veterans use guaranty entitlement on a single loan 
described in subparagraph (B)(iv), the loan is automati-
cally guaranteed by the United States in an amount not 
to exceed the lesser of the following: 
‘‘(I) In the case of a loan for which— 
‘‘(aa) at least one veteran is a covered vet-
eran, 25 percent of the Freddie Mac con-
forming loan limit; or 
‘‘(bb) no veteran is a covered veteran, 25 
percent of the loan. 
‘‘(II) The sum of the maximum amount of 
guaranty entitlement available to each veteran, as 
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calculated pursuant to the table in subparagraph 
(B). 
‘‘(ii) Clause (i) shall not apply to a loan made to two 
veterans who are married to each other if there are no 
other obligors on the loan.’’; and 
(5) in subparagraph (E), as redesignated by 
paragraph (3)(A)— 
(A) by striking ‘‘subparagraph’’ and insert-
ing ‘‘paragraph’’; and 
(B) by redesignating subclauses (I) and 
(II) as clauses (i) and (ii), respectively. 
(b) PENALTIES FOR FALSE CERTIFICATION.—Sec-
tion 3704(c) of such title is amended by adding at the 
end the following new paragraph: 
‘‘(3) Any veteran who knowingly and materially 
makes a false certification under paragraph (1) or (2) of 
this subsection shall be liable to the United States Govern-
ment for a civil penalty in an amount not to exceed 
$23,607. A penalty under this paragraph may be in addi-
tion to any other remedy available to the Secretary. All 
determinations necessary to carry out this paragraph shall 
be made by the Secretary.’’. 
(c) LOAN FEES.—The loan fee table in section 
3729(b)(2) of such title is amended by striking ‘‘April 7, 
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2023’’ each place it appears and inserting ‘‘April 7, 
2031’’. 
(d) EFFECTIVE DATE.—The amendments made by 
this Act shall take effect on the date that is 180 days 
after the date of the enactment of this Act. 
Æ 
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