Members of the National Guard and Reserve would remain eligible for the Department of Veterans Affairs [VA] Home Loan Guaranty Program under legislation introduced by U.S. Senators Daniel K. Akaka (D - Hawaii) and Jim Jeffords (R-VT).

Senator Akaka authored legislation in 1992 extending eligibility for VA-guaranteed home loans to National Guard and Reserve members who complete six years of service. In 1998, Akaka successfully proposed an amendment continuing these service members' participation in the program through fiscal year 2003. This legislation would make reservists' eligibility for the program permanent.

The VA guaranty program is an important component of a benefits package making Guard and Reserve service more attractive to qualified individuals. Permanent authorization will assist the National Guard and Reserve with their recruitment efforts by allowing veterans housing loans to be offered as an incentive.

"As the author of the law extending eligibility for the VA Home Loan Guaranty Program to National Guard and Reserve members, I am pleased with the results of the program," Akaka noted. "Thousands of dedicated reservists have been able to fulfill the dream of home ownership through this program."

To qualify, reservists must serve for at least six years, and continue to serve or have received an honorable discharge. Participation of Guard and Reserve members not only benefits these service members, but also stabilizes the financial viability of the program since this group has had a lower default rate than most other program participants. Currently, the VA Home Loan Guaranty Program cannot be used as a recruitment tool since its authorization expires in four years and reservists are required to serve at least six years before they qualify for VA-guaranteed loans.

"Since the end of the cold war, we have reassessed the role, size, and structure of our Armed Forces," Akaka observed. "We have significantly downsized our active duty military forces, and as a result, the National Guard and Reserve have a more prominent role in the Total Force. Reservists are being increasingly called upon to protect and promote our national security interests in regions throughout the world. Most recently, reservists served alongside active duty forces in the Balkans to support NATO air operations over Kosovo. We should recognize the vital service to our country by the Select Reserve and ensure that veterans housing loans will continue to be available to them beyond the near future."