Veterans’ Benefits Improvement Act of 2008 Changes

Recently, in VA Circular 26-08-19, the Veterans Administration (VA) announced several changes regarding loan guaranty provisions.  President Bush Officially signed over the changes this month October 2008.

Major Improvements to the VA Program are below in layman terms ☺

The Veterans Benefits Act of 2008  includes four major housing provisions. 

1.)  Cash Out Refinances the bill increases the maximum LTV from 90% to 100%.

2.)  The VA ARM and hybrid ARM programs are extended until 2012. 

3.)  The maximum guaranty amount of 175% of the Freddie Mac limit is extended to 2012.  This makes the VA limit the highest in the marketplace compared to Fannie Mae, Freddie Mac and FHA.  (This change increases the prospects for extending the mortgage limits in the Stimulus Bill prior to January 1st.) 

4.)  The bill also increases the maximum guaranty for refinances from $36,000 to the same guaranty for purchase transactions in a particular area.

The official Bill Circular is found HERE

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