# Plain Language Summary: VALID Act of 2025

This bill makes two main changes to help military veterans and active-duty service members get better information when applying for home loans. The first change requires that when someone applies for an FHA loan (a government-backed mortgage), they must be told about VA loans as an alternative option. VA loans are special mortgages available to veterans and active-duty military members that often come with better terms, like no down payment required and no mortgage insurance fees. Right now, people applying for FHA loans might not know they have this better option available to them, so the bill ensures lenders include information about VA loans in the disclosure documents they give to borrowers.

The second change requires mortgage companies to add a question about military service to the standard loan application form that most lenders use. This question would appear near the top of the application, right above where you sign. The purpose is to make it easier for lenders to identify which applicants might qualify for VA loans, so they can point people toward that option if it would save them money. The bill gives the Federal Housing Finance Agency six months to write the rules for how this should work.

Overall, this bill is designed to make sure that veterans and military members don't accidentally take out more expensive FHA loans when they might qualify for VA loans with better terms. It's essentially about giving people better information upfront so they can make smarter choices about their mortgages. The bill doesn't create any new requirements for borrowers themselves—it just changes what information lenders must provide and what questions they must ask.