The VA home loan program has been around for over 50 years and has undergone numerous changes since its establishment. The program was started in 1944 as part of the Servicemen’s Readjustment Act, which was designed to assist troops returning from war and help them readapt to civilian life. Since then, numerous adjustments have been made as the VA has discovered ways they can better serve Veterans and military families who have selflessly devoted their time and energy to helping their country.
Now, it looks as if we’re in store for another round of changes. As the homebuying scene is evolving and technology becomes more actively involved, the VA is making adjustments to ensure that military borrowers aren’t left behind. Here are some of the changes that may be on the horizon in 2023.
How Are VA Home Loans Changing in 2023?
The past couple of years were challenging for VA borrowers for many reasons. Increased demand led to long wait times for appraisals. Furthermore, the pandemic pushed many appraisers to start performing their jobs remotely and the Federal Housing Authority gave permission for desktop appraisals. VA borrowers, however, weren’t able to obtain appraisals virtually, resulting in late reports that put transactions at risk.
Now, the VA is attempting to remedy the situation by adapting to modern times. Here are some of the changes to VA home loans that we may see in the coming year:
Virtual Appraisals for VA Home Loans
In late 2022, the U.S. House of Representatives passed the “Improving Access to the VA Home Loan Benefit Act of 2022.” The bill proposes to make changes to the VA appraisal process, including allowing appraisals to occur virtually.
If the VA was to start accepting desktop appraisals, it could significantly expedite the buying process. Furthermore, the change would help ensure that VA borrowers would not be put at an unfair disadvantage since desktop appraisals are already allowed for other types of loans.
VA Appraisal Waivers
The bill also suggests that the VA start introducing a protocol for appraisal waivers. The agency is encouraged to provide guidance as to when an appraisal is necessary and in what cases it may be waived.
When Will These Changes Take Place?
The Improving Access to the VA Home Loan Benefit Act of 2022., or H.R.7735 has been passed by the House. But it is still awaiting approval from the U.S. Senate. So for now, the future is uncertain. Changes will not take place until everyone has given their official approval.
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