Veterans' Housing and Memorial Affairs Amendments of 1985

Veterans' Housing and Memorial Affairs Amendments of 1985 - Directs the Administrator of Veterans Affairs to report to the Congress a plan to expand the national cemetery system in at least ten areas with the greatest need. Directs the Administrator to consider acquiring existing State cemeteries to meet such need. Gives contingent dates for the submission of the first such report.

Amends provisions concerning national cemeteries and memorials to require that each grave marker in a national cemetery be upright. Provides an exception for individuals requesting flat markers. Requires the Administrator, no later than January 1, 1986, to designate for each cemetery in the National Cemetery System a section for graves with upright markers and a section for graves with flat markers.

Directs the Administrator to establish a national cemetery in Merced County, California, on land which is donated by the Romero Ranch Company.

Authorizes the Administrator to assist certain disabled veterans in acquiring a residence already adapted with special features deemed necessary due to the veteran's disability.

Expresses the sense of the Congress that the one-percent loan origination fee charged by the Veterans Administration (VA) to veterans obtaining a home loan guaranteed by the VA should not be increased. Directs the President to request additional appropriations if he finds that additional funding for the VA home loan guarantee program is required.