Rep. William Timmons (R-SC) and Rep. Mike Levin (D-CA) recently introduced the Building Credit Access for Veterans Act to help expand credit options for veterans and members of the Armed Forces who are eligible for Department of Veterans Affairs (VA) housing or small business loans and have an insufficient credit history. This bill requires the VA to implement a pilot program to assess the feasibility and advisability of using alternative credit scoring information or models to improve the determination of creditworthiness of certain individuals and to increase the number of such individuals who are able to obtain VA housing and small business loans.

“Serving our nation comes with many sacrifices, but homeownership should not be one of them,” said Rep. William Timmons. “I am proud to reintroduce this bipartisan legislation to help our servicemembers and veterans utilize alternative credit sources to access VA loans. Our legislation will help put the dream of owning a home within reach for more of America’s heroes, and I look forward to its consideration in the U.S. House.”

“Increasing the number of veteran homeowners by reducing barriers will allow veterans to build wealth and provide affordable, safe housing for their families.,” said Rep. Levin. “One way to do this is to make VA home loans more accessible. Our bill would allow veterans to use alternative credit scoring information for VA home loan applications. This is one tool we can provide to help veterans buy a home. I thank Rep. Timmons for his partnership on this bill and look forward to it moving quickly through the legislative process.”

This Building Credit Access for Veterans Act directs VA to carry out a pilot program to assess the feasibility and advisability of:

- Using alternative credit scoring information or models for covered veterans and servicemembers in order to improve the determination of creditworthiness and increase the number of such individuals who are able to obtain a VA home loan; and
- Establishing criteria for acceptable commercially available credit scoring models to be used by VA lenders.

Additionally, this legislation requires a report to Congress that contains data regarding the feasibility of use for alternative credit scoring information or credit scoring models, the rate of participation in the pilot program, and an assessment of whether participants benefited from their involvement, among other information.

Covered veterans and servicemembers are those who are eligible for a VA home loan but do not have a credit record with one of the national credit reporting agencies or their credit record contains insufficient information to assess worthiness. Alternative credit scoring information may include proof of rent, utility, and insurance payment histories, and other information VA considers appropriate.