Aside from financial considerations, one of the most important aspects of a VA home loan is adherence to Department of Veterans Affairs regulations on fair housing. The VA publishes extensive rules and guidelines to prevent any Veteran from facing discrimination when it comes time to find and purchase a home.
The VA requires borrowers to certify that they were not discriminated against during the VA loan process based on race, color, religion, sex, handicap, familial status or national origin.
Federal law requires VA lenders to follow the Fair Housing Act laws. All aspects of the housing process, including lending and selling, are subject to these restrictions. If a Veteran decides to sell a VA-financed property or rent it out, they are still obligated to comply with VA regulations and fair housing laws throughout that process.
Homeowners with a VA loan obligate themselves under contract to comply to anti-discrimination regulations and have steep consequences if broken.
VA-approved lenders may not discriminate against any borrower. This includes situations where the loan applicant is temporarily disabled, pregnant or falls into another category that affects the borrower’s income temporarily but does not affect the overall employment status or viability of the borrower as a good credit risk.
No seller can refuse to offer a property on a discriminatory basis – the seller is required to comply with Fair Housing Act laws. The VA strives to ensure all Veterans are given an equal opportunity to buy homes, regardless of race, color, religion, sex, handicap, familial status or national origin. The VA investigates all claims of housing discrimination and takes them very seriously.
If a borrower experiences discrimination throughout the VA loan process, it is important to report this to the nearest VA office. In addition, the borrower should fill out and submit VA Form 26-8827 to have documentation of the incident. The VA will then investigate the claim.
VA borrowers can also submit a complaint to the Department of Housing and Urban Development Office of Fair Housing and Equal Opportunity since VA lenders must adhere to the Fair Housing Act.