Fair Housing Act & VA Loans

When applying for a VA home loan, federal fair housing protections play an important role in ensuring equal access to housing. In this article, we’ll explain how the Fair Housing Act applies to VA home loans, what types of discrimination are prohibited during the loan and housing process, how these protections affect disabled veterans, and what steps to take if you believe you’ve experienced VA loan discrimination.

We’ll start with a little background on the Fair Housing Act.

What Is the Fair Housing Act?

The Fair Housing Act is a federal law that prohibits discrimination at any stage of the housing process based on:

• race or color
• religion
• sex
• national origin
• familial status
• disability

These protections apply to all housing transactions. It is a violation of federal law to be denied a loan, home purchase, rental, lease renewal, or any other aspect of housing based on these criteria.

VA Loan Discrimination and the Fair Housing Act

As stated above, the Fair Housing Act applies to all housing transactions. That means VA home loans enjoy the same Fair Housing law protections as any other type of mortgage loan, such as FHA loans, USDA loans, and conventional loans. In short, military members looking for housing should not, under the law, be discriminated against for being “single soldier parents” or having a family with or without being legally married, etc.

What Fair Housing Laws Forbid in VA Loan Applications

The Department of Housing and Urban Development (HUD) reminds that it is considered a violation of federal law to do any of the following on the grounds of race, color, religion, sex, disability, familial status, or national origin:

• Refuse to rent housing
• Refuse to sell housing
• Refuse to negotiate for housing
• Otherwise make housing unavailable
• Set different terms, conditions or privileges for sale or rental of a dwelling
• Provide “different housing services or facilities” than offered to others
• Falsely deny that housing is available for inspection, sale or rental
• Create any notice, statement or advertisement about the sale or rental of a dwelling that indicates preference, limitation, or discrimination
• Use different qualification criteria or applications, or sale or rental standards
• Limit privileges, services or facilities of a dwelling
• Discourage the purchase or rental of a dwelling
• Assign a person to a particular building or neighborhood or section of a building or neighborhood
• For profit, persuade, or try to persuade, homeowners to sell their homes by suggesting that people of a particular protected characteristic are about to move into the neighborhood (blockbusting)

Disabled Veterans And The Fair Housing Act

Disabled veterans cannot be discriminated against because of their disability when seeking housing, whether renting, buying with a VA mortgage, or purchasing in some other way. Beyond the protections already mentioned, it is also illegal to refuse to make a reasonable accommodation for a disabled applicant, renter, or buyer.

If a seller or landlord refuses a reasonable accommodation, this may be legally actionable under Fair Housing laws. You can’t be denied housing because a reasonable accommodation is required, and no one can refuse accommodations being made to make a home more accessible.

Even seemingly minor actions, such as a statement like “You know this building isn’t ADA-compliant,” could be considered a violation of federal law as a form of prohibited discouragement. Know your rights and don’t assume even small infractions won’t be acted upon if reported.

How to Report VA Loan Discrimination

If you experience discrimination while trying to buy a home with a VA mortgage, you should report it immediately to your nearest VA office. You will need to submit VA Form 26-8827 to report the discrimination and the local VA office will be responsible for investigating your problem.

But don’t stop there, you can also file your complaint to the Department of Housing and Urban Development Office of Fair Housing and Equal Opportunity at (800) 669-9777. You can also file a complaint at the HUD official site. Access for the hearing impaired is available to file a complaint via the Federal Relay Service at (800) 877-8339.

---

---