## SEC. 6. LOANS GUARANTEED UNDER HOME LOAN PROGRAM OF DEPARTMENT OF VETERANS AFFAIRS. 

(a) ADJUSTMENT OF LOAN LIMIT.— 

(1) IN GENERAL.—Section 3703(a)(1) of title 38, United States Code, is amended— 

‘‘(C)(i) With respect to loans described in subclause (IV) of subparagraph (A)(i) made to a veteran not covered by clause (ii), the maximum amount of guaranty entitlement available to the veteran shall be 25 percent of the loan. 

‘‘(ii) With respect to loans described in subclause (IV) of subparagraph (A)(i) made to a covered veteran, the maximum amount of guaranty entitlement available to the veteran shall be 25 percent of the Freddie Mac conforming loan limit, reduced by the amount of entitlement previously used by the veteran under this chapter and not restored as a result of the exclusion in section 3702(b) of this title. 

‘‘(iii) In this subparagraph: 

‘‘(I) The term ‘covered veteran’ means a veteran who has previously used entitlement under this chapter and for whom the full amount of entitlement so used has not been restored as a result of the exclusion in section 3702(b) of this title. 

‘‘(II) The term ‘Freddie Mac conforming loan limit’ means the limit determined under section 305(a)(2) of the Federal Home Loan Mortgage Corporation Act (12 U.S.C. 1454(a)(2)) for a single-family residence, as adjusted for the year involved.’’. 

(2) LOANS TO NATIVE AMERICAN VETERANS.—Section 3762(c) of such title is amended— 

(3) CONFORMING AMENDMENT.—Section 3710(d)(4) of such title is amended by striking ‘‘section 3703(a)(1)(B) of this title’’ and inserting ‘‘subparagraph (B) or (C) of section 3703(a)(1) of this title’’. 

(b) ADJUSTMENT OF LOAN FEES.—Section 3729(b)(2) of title 38, United States Code, is amended by striking the loan fee table and inserting the following: 

(A) in subparagraph (A)— 

(i) in clause (i)(IV), by striking ‘‘the lesser of the maximum guaranty amount (as defined in subpara- graph (C)) or’’; and 

(ii) in clause (ii), by striking ‘‘subparagraph (B) of this paragraph’’ and inserting ‘‘subparagraph (B) or (C)’’; 

(B) in subparagraph (B)— 

(i) by striking ‘‘The maximum’’ and inserting ‘‘With respect to loans described in subclauses (I), (II), or (III) of subparagraph (A)(i), the maximum’’; and 

(ii) by striking ‘‘or in the case’’ and all that follows through ‘‘subparagraph (C)),’’; and 

(C) by striking subparagraph (C) and inserting the following new subparagraph (C): 

(A) by striking paragraph (1); and 

(B) by redesignating paragraphs (2) and (3) as para- graphs (1) and (2), respectively. 

