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Bipartisan Bill Seeks to Eliminate VA Home Loan Fees for Disabled Veterans

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  Published in House and Home on Monday, April 6th 2026 at 7:04 GMT by Orange County Register
      Locale: UNITED STATES

WASHINGTON D.C. - A groundswell of bipartisan support is building behind the "Disabled Veterans Home Loan Fee Elimination Act," a bill poised to significantly ease the financial burden on veterans with service-connected disabilities seeking to purchase homes. Introduced last week, the legislation aims to waive the often-substantial fees associated with VA home loans for those who have been wounded or injured while serving their country.

The current system requires many veterans, even those with significant disabilities directly resulting from their service, to pay a funding fee - a percentage of the loan amount - as a condition of securing a VA-backed mortgage. While designed to offset the cost of the VA loan program to taxpayers, advocates argue the fee represents an unfair hardship for veterans already grappling with the physical, emotional, and financial challenges of their disabilities. The fees can range from 0.5% to 3.3% of the loan amount, potentially adding thousands of dollars to the initial cost of homeownership.

The bill's sponsors - Representatives Mike Levin (D-CA) and Doug Lamborn (R-CO) in the House, and Senators Katie Porter (D-CA) and Dan Sullivan (R-AK) in the Senate - highlight the inherent injustice of charging fees to those who have already made significant sacrifices for the nation. "These men and women have already paid a heavy price for our freedom. To ask them to pay again just to secure a safe, stable home for themselves and their families is simply unacceptable," stated Senator Porter during a press conference yesterday. Senator Sullivan echoed this sentiment, emphasizing the bill as a matter of fulfilling a promise made to those who served. "We tell our service members we'll take care of them when they return home. This bill is about keeping that promise."

A Growing Chorus of Support The legislation isn't just gaining traction amongst lawmakers. Veterans advocacy groups are vigorously campaigning for its passage. The Veterans of Foreign Wars (VFW) and the Disabled American Veterans (DAV) have both publicly endorsed the bill, mobilizing their memberships to contact their representatives and senators.

"For far too long, disabled veterans have been unfairly penalized with these fees," said Jeremy Butler, CEO of the Iraq and Afghanistan Veterans of America (IAVA). "Waiving these fees isn't about a handout; it's about recognizing their service and removing a needless barrier to homeownership. It's a matter of basic fairness." Butler noted that the cumulative effect of the fees can be particularly damaging for veterans on fixed incomes or those struggling to re-enter the civilian workforce.

Economic Impact & Potential Benefits

Beyond the moral imperative, proponents also point to the potential economic benefits of the bill. By removing the financial hurdle, more disabled veterans will be able to access homeownership, stimulating local economies and strengthening communities. Homeownership is frequently associated with increased civic engagement, improved educational outcomes for children, and enhanced financial stability for families.

Furthermore, advocates suggest the bill could actually reduce long-term costs for the VA. By increasing homeownership rates among veterans, it could decrease reliance on other social safety net programs and reduce the number of veterans experiencing homelessness. The Department of Veterans Affairs has historically struggled with a high rate of veteran homelessness, and stable housing is widely recognized as a critical factor in addressing this crisis.

Potential Challenges & Next Steps

While the bipartisan support is encouraging, the bill's path to becoming law is not guaranteed. Concerns about the cost of waiving the fees - estimated to be approximately $100 million annually - are likely to be raised during the committee review process. Opponents may argue that the VA loan program is already financially sustainable and that eliminating the fees would place an undue burden on taxpayers. However, supporters are prepared to counter these arguments by highlighting the relatively modest cost of the bill compared to the overall VA budget and the significant benefits it would provide to disabled veterans.

The bill is currently under review by the House Veterans' Affairs Committee and the Senate Veterans' Affairs Committee. A vote in committee is expected within the next few weeks, followed by consideration by the full House and Senate. Veterans and their advocates are urged to continue contacting their elected officials to express their support for the "Disabled Veterans Home Loan Fee Elimination Act." The future looks promising for this critical legislation, potentially offering a significant step towards ensuring all those who served our nation have access to the stability and security of homeownership.