Senator Thom Tillis of North Carolina led a bipartisan effort in Congress to raise awareness of the home purchase benefits available to the nation's veterans. Along with colleagues on both sides of the aisle, Tillis introduced the VA Home Loan Awareness Act of 2023, a bill that seeks to close a longstanding information gap that keeps many veterans from using one of the most valuable benefits earned through their service.

The Problem the Bill Tries to Solve

The VA Home Loan Program allows eligible veterans and service members to purchase a primary residence with no down payment, no private mortgage insurance, and often at interest rates below what conventional or FHA loans offer. These terms can save a veteran tens of thousands of dollars over the life of a mortgage, and in many markets they make the difference between renting and owning.

Despite those advantages, lawmakers say only a small share of eligible veterans ever use the benefit. Industry groups have cited usage rates around 13 percent. Many veterans simply do not know the program exists, and others are steered toward conventional or FHA products by loan officers who are more familiar with those options.

What the VA Home Loan Awareness Act Does

The bill adds a simple notification to the Uniform Residential Loan Application, the standard form borrowers fill out when applying for a mortgage. Under the legislation, a lender would ask whether the applicant is a veteran, active-duty service member, or surviving spouse, and if so, whether that applicant is aware of the VA Home Loan Program.

By placing the question on the standard application, sponsors hope to prompt earlier conversations between borrowers and lenders about VA loans before a veteran commits to a different, more expensive product. The approach does not force anyone to use a VA loan. It simply makes sure veterans know the option exists before they finalize a financing decision.

Bipartisan Support

Tillis co-sponsored the measure with lawmakers from both parties. He has long focused on housing issues affecting veterans, dating back to his 2018 work with Senator Elizabeth Warren on the Protecting Veterans from Predatory Lending Act, which became law as part of a broader banking package. That earlier bill required lenders offering VA streamline refinances to show a concrete benefit to the veteran, ending a wave of churning that eroded borrower equity and raised costs for the VA loan pool.

Tillis has also joined Senators Jon Tester and Jerry Moran on legislation to expand VA home loan eligibility to National Guard and Reserve members by crediting federal Title 32 service toward qualifying time. Taken together, these measures reflect a broader congressional push to modernize VA housing benefits so they match today's military reality.

Why Awareness Matters So Much

A VA loan's zero-down feature is the headline, but the product's structure helps in other ways too. VA loans have no monthly mortgage insurance, which can cut monthly payments by one hundred dollars or more compared with low-down-payment conventional or FHA loans. The VA also sets limits on allowable closing costs and requires appraisers to ensure the home meets minimum property condition standards.

Veterans who pair a VA loan with down payment assistance from state housing finance agencies, or with seller credits toward closing costs, can sometimes buy a home with little or no cash out of pocket. Lenders who handle VA loans regularly can walk borrowers through Certificate of Eligibility requirements, funding fee exemptions for disabled veterans, and the VA's occupancy rules.

Complementary Federal Efforts

The Home Loan Awareness Act sits alongside other VA initiatives to help veteran homeowners. The VA Servicing Purchase Program, launched in 2024, gave borrowers who fell behind on their mortgages a pathway to modify their loans at a lower interest rate. The VA also maintains a network of regional loan centers and partners with housing counseling agencies to help veterans prepare for homeownership.

For veterans already shopping for a home, the steps are straightforward. Request a Certificate of Eligibility from the VA, find a lender who handles VA loans, and compare quotes just as a conventional borrower would. Many state housing finance agencies layer down payment grants on top of a VA first mortgage, and some cities offer additional closing cost help for service members.

Looking Ahead

Supporters of the VA Home Loan Awareness Act argue that a small change to a standard form could unlock billions of dollars in savings for veteran homebuyers over the long run. By putting the benefit directly in front of every qualifying borrower at the moment they start shopping for a mortgage, Congress hopes to tilt the market toward the products veterans have already earned.

Veterans who want to learn more can visit the VA's home loans website or contact a VA-approved lender in their area. Many nonprofit housing counseling agencies also provide free education on VA loans and on how to pair them with state and local first-time homebuyer programs.

Tillis Leads Bipartisan Push to Expand VA Home Loan Awareness