In 2021, Congressman Mike Levin (D-CA) introduced the “Veterans Home Energy Savings Act”. RESNET® assisted Congressman Levin in drafting the legislation. The bill grants “lenders flexibility when calculating the sufficiency of a Veteran’s residual income used to qualify for a VA home loan based on the subject property’s RESNET’s Home Energy Rating System (HERS®) score, or other report approved by the Secretary of Veterans Affairs”. The legislation was endorsed by the Veterans of Foreign Wars (VFW) and passed unanimously out of the House Veterans Affairs Committee. The Levin bill was incorporated as part of the 2023 Consolidated Appropriations Act that was passed by Congress and signed into law by the President that year. After the enactment of the law, RESNET worked closely with Veterans Administration staff in developing the guidance for implementing the legislation. In developing the guidelines, the agency convened an advisory panel that was composed of 21 members consisting of mortgage lenders, appraisers, energy raters, energy efficient organizations, real estate agents, homebuilders, and consumer advocates. The agency allowed RESNET the opportunity to present to the panel on the HERS report, how it is compiled, and its contents. It solicited input from advisory panel members on the best implementation strategy and other energy efficiency reports the Secretary should review/consider. On September 22, 2025, the Veterans Administration issued Circular 26-25-7 “The Effect of Certain Home Energy Efficiency Ratings on VA Underwriting Decisions,” implementing the law. The circular stated, “If an energy efficiency report of a subject property indicates potential utility expense savings to the borrower, the lender may consider the cost savings as a compensating factor for loan approval. … Lenders may use a RESNET HERS report, or any other home energy efficiency report that contains an estimate of the expected energy cost savings for the Veteran, based on detailed information about the home.” The new program is now in effect, and veterans can take advantage of its benefits. The Veterans Administration circular can be downloaded at The Effect of Certain Home Energy Efficiency Ratings on VA Underwriting Decisions The Veterans Administration’s action is an important step. It will allow more veterans to afford more comfortable and energy-efficient homes and save on energy costs. The VA Home Program can also serve as a model for other federally sponsored mortgage programs to take energy savings into account in the qualification of a mortgage loan.
