Veterans and Military - Housing Benefits

VA Home Loans Improved through Veterans Benefits Act

Good news for anyone currently serving at Fort Bragg, Pope Air Force Base, or Seymour Johnson Air Force Base, as well as Veterans living throughout the Raleigh, NC area.

On October 10, 2008, President Bush signed into law the Veterans Benefits Improvement Act of 2008.

This bill addressed about a dozen topics of importance to Veterans, but some of the most noted points affect housing.

There are three major impacts to the VA Home Loan Guaranty Program:

1.   The authority to guarantee adjustable rate mortgages (ARMs) and hybrid adjustable rate mortgages (HARMs) has now been extended to September 30, 2012.

2. The maximum guaranty for cash-out refinance loans has been made the same as purchase loans - they are no longer limited to $36,000. In addition, cash-out refinance loans may now be made up to 100% of the appraised value of the home.

3. The temporary increase to the maximum guaranty has been extended through December 31, 2011. When combined with new locality-based Freddie Mac conforming loan limit in January 2009, VA's maximum county "loan limit" will be $1,094,625 ($1,641,937.50 in Alaska, Guam, Hawaii, and the Virgin Islands). This results in unique county "loan limits" for VA.  

The higher limits with the maximum guarantee may not affect many veterans living in the Raleigh NC area, since there is plenty of housing available under $350,000, but this step will probably help in many other areas that are less affordable.

The details of this act and how it affects VA loans and housing can be found here.

If you have any questions on your current VA loan, or are looking to purchase a new home with a VA loan, contact a lender who has expertise in this field.

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