Section 1 Short title
This Act may be cited as the “Veterans Home Loan Fairness Act of 2024”.
Veterans Home Loan Fairness Act of 2024
A BILL
To amend title 38, United States Code, to prohibit the consideration of childcare expenses in the calculation of debt-to-income ratios for Department of Veterans Affairs housing loans, and for other purposes.
Sec. 2 Findings and purpose
Findings— Congress finds the following:
Veterans and their families often face unique financial challenges, including the cost of childcare.
The consideration of childcare expenses in the calculation of debt-to-income ratios can disproportionately affect the ability of veterans to qualify for home loans.
Ensuring equitable access to home loans is critical to supporting veterans and their families.
Purpose— The purpose of this Act is to prohibit the consideration of childcare expenses in the calculation of debt-to-income ratios for Department of Veterans Affairs housing loans to promote fair access to home ownership for veterans.
Sec. 3 Prohibition on consideration of childcare expenses in debt-to-income ratio calculations
In general— Chapter 37 of title 38, United States Code, is amended by inserting after section 3720 the following new section:
“3720B. Prohibition on consideration of childcare expenses in debt-to-income ratio calculations
“(a) In general—In determining the eligibility of a veteran for a housing loan guaranteed, insured, or made under this chapter, the Secretary shall ensure that childcare expenses are not considered in the calculation of the veteran’s debt-to-income ratio.
“(b) Definitions—In this section:
“(1) Childcare expenses—The term childcare expenses means costs incurred for the care of a child or minor dependent of the veteran concerned.
“(2) Debt-to-income ratio—The term debt-to-income ratio means the ratio of a veteran’s total monthly debt payments to such veteran’s gross monthly income.
“(c) Regulations—The Secretary shall prescribe such regulations as are necessary to implement the requirements of this section.”
Clerical amendment— The table of sections at the beginning of chapter 37 of such title is amended by inserting after the item relating to section 3720 the following new item:
Sec. 4 Effective date
This Act and the amendments made by this Act shall take effect 90 days after the date of the enactment of this Act.