I 
110TH CONGRESS 
1ST SESSION H. R. 4539 
To amend title 38, United States Code, to make certain improvements to 
the housing loan benefit program of the Department of Veterans Affairs. 
IN THE HOUSE OF REPRESENTATIVES 
DECEMBER 13, 2007 
Mr. BUYER (for himself and Mr. MICHAUD) introduced the following bill; 
which was referred to the Committee on Veterans’ Affairs 
A BILL 
To amend title 38, United States Code, to make certain 
improvements to the housing loan benefit program of 
the Department of Veterans Affairs. 
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 ‘‘Department of Vet-
erans Affairs Loan Guaranty Cost Reduction Act of 
2007’’. 
SEC. 2. IMPROVEMENTS TO HOUSING LOAN PROGRAM OF 
DEPARTMENT OF VETERANS AFFAIRS. 
(a) INCREASE IN MAXIMUM GUARANTY AMOUNT.— 
Section 3703(a)(1)(C) of title 38, United States Code, is 
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amended by inserting ‘‘125 percent of’’ after ‘‘25 percent 
of’’. 
(b) EXTENSION OF CERTAIN LOAN FEE DETER-
MINATION PERIODS.—Section 3729(b)(2) of title 38, 
United States Code, is amended— 
(1) in subparagraphs (A)(iii) and (iv), (B)(ii), 
(C)(i) and (iii), and (D)(i) and (ii), by striking ‘‘Oc-
tober 1, 2011’’ each place it appears and inserting 
‘‘October 1, 2017’’; and 
(2) in subparagraph (B)(iii) and (iv), by strik-
ing ‘‘October 1, 2013’’ both places it appears and 
inserting ‘‘October 1, 2017’’. 
(c) INCREASE IN MAXIMUM GUARANTY AMOUNT FOR 
CERTAIN
REFINANCED
LOANS.—Section 
3703 
(a)(1)(A)(IV) of title 38, United States Code, is amended 
by inserting ‘‘(5),’’ after ‘‘(3),’’. 
(d) DECREASE IN EQUITY REQUIREMENT FOR CER-
TAIN LOANS.—Section 3710(b)(8) is amended by striking 
‘‘90 percent’’ and inserting ‘‘100 percent’’. 
(e) LIMITATION
ON AMOUNT
OF FEES.—Section 
3729 of title 38, United States Code, is amended by add-
ing at the end the following new subsection: 
‘‘(d) LIMITATION ON AMOUNT OF FEE.—For any 
loan guaranteed, insured, or made in an amount that ex-
ceeds the Freddie Mac conforming loan limit limitation de-
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termined under section 305(a)(2) of the Federal Home 
Loan Mortgage Corporation Act (12 U.S.C. 1454(a)(2)) 
for a single-family residence, as in effect on the date of 
the enactment of the Department of Veterans Affairs 
Loan Guaranty Cost Reduction Act of 2007, the amount 
of the fee collected under this section may not exceed the 
amount of such a fee collected for a loan guaranteed, in-
sured, or made in an amount equal to such limitation.’’. 
(f) INCREASE
IN
GUARANTY
FOR
AFFORDABLE 
HOMES.—Section 3703(a)(1) of title 38, United States 
Code, is amended— 
(1) By redesignating subparagraph (C) as sub-
paragraph (D); and 
(2) by inserting after subparagraph (B) the fol-
lowing new subparagraph (C): 
‘‘(C)(i) The maximum amount of guaranty entitle-
ment available to an eligible veteran for a loan in any 
amount to purchase a dwelling to be owned and occupied 
by the veteran as a home, if the dwelling is affordable 
housing (as determined by the Secretary, in consultation 
with the Secretary of Housing and Urban Development 
and the heads of other appropriate agencies) and the vet-
eran is the first owner-occupant of the dwelling, shall be 
the greater of— 
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‘‘(I) the amount of guaranty entitlement avail-
able to the veteran under subparagraph (A); or 
‘‘(II) 30 percent of the loan. 
‘‘(ii) For the purposes of this subparagraph, the term 
‘eligible veteran’ means a veteran whose annual income is 
below a maximum income amount, which shall be deter-
mined by the Secretary.’’. 
(g) USE OF CERTAIN FUNDS TO REDUCE CLOSING 
COSTS
FOR LOANS GUARANTEED
FOR AFFORDABLE 
HOMES.—Section 3722 of title 38, United States Code, 
is amended— 
(1) by redesignating subsection (e) as sub-
section (f); 
(2) by inserting after subsection (d) the fol-
lowing new subsection (e): 
‘‘(e)(1) Amounts deposited into the fund under sub-
section (c)(2) that are not expended for the purpose of 
guaranteeing loans under this chapter may be used to re-
duce the closing costs of a loan referred to in section 
3703(a)(1)(C) or 3762 of this title made to a veteran who 
is not indebted to the Federal Government. 
‘‘(2) During the fiscal years 2008 through 2017, the 
total amount available for payments under paragraph (1) 
may not exceed $14,000,000. 
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‘‘(3) For each fiscal year, the Secretary shall deter-
mine the amount of each payment under paragraph (1) 
by estimating the number of veterans likely to apply to 
receive such a payment. The Secretary shall make such 
payments in the order in which the Secretary receives ap-
plications for such payments.’’. 
Æ 
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