Re-Finance Program for Vets

Re-Finance Program for Vets

For the past year or so, the economic condition of our nation has been splashed all over the Paper News Media, TV, Radio, the WEB and heck... I even think I saw a courier pigeon delivering some bad economic news the other day.  Not really... but it has been nuts, not only on Wall Street but on Main Street as well.

We are always on the hunt for new finance platforms for our members and clients. And... to that end, we have some really cool information to share with our Vets, active duty and retired in all branches who qualify for a VA Guaranteed Home Loan. This is a national finance tool that could help thousands, perhaps hundreds of thousands of Vets, who are stuck in adjustable rate sub-prime mortgages.

For our Vets!
There has been much ballyhoo over all of the economic stimulus packages that have been pushed through Congress over the past few months. But... there was very little fanfare given to one of the most useful VA Loan tools our nation has ever seen. Finally, Congress did something to help Vets... before they go down in flames.

Sponsored by Senator Daniel K. Akaka of Hawaii - House Armed Services Committee, in December 2007, the bill was originally simply a resolution supporting the goals and ideals of a National Medal of Honor and to celebrate and honor the recipients of the Medal of Honor on the anniversary of the first award of that medal in 1863. The original bill did not contain any provisions for VA Loan Modifications. However around May of 2008 Senator Akaka introduced S. 2961 a bill to amend title 38, United States Code, to enhance the refinancing of home loans by veterans. Finally in June of 2008 the bill was passed unanimously by the Senate and subsequently signed into law by President Bush on October 10th 2008.

So what is the new law? Simply put the new law states;

*** SOURCE "...The new law makes changes to VA's home loan refinancing program. Veterans who wish to refinance their subprime or conventional mortgage may now do so for up to 100 percent of the value of the property. These types of loans were previously limited to 90 percent of the value.

Additionally, Congress raised VA's maximum loan amount for these types of refinancing loans. Previously, these refinancing loans were capped at $144,000. With the new legislation, such loans may be made up to $729,750 depending on where the property is located.

Increasing the loan-to-value ratio and raising the maximum loan amount will allow more qualified veterans to refinance through VA, allowing for savings on interest costs or even potentially avoiding foreclosure..."

Click here for a complete copy of the new VA Instruction Letter. (PDF format)

What a GREAT tool for our Vets to have at their disposal. Now... the next thing in my cross hairs is to see if Vets with mortgages that encumber the home for more than current market value, will be successful in getting the banks who hold those notes to release and discharge their debt and allow the Vet to secure a VA loan at the current market value. If this can happen, tens of thousands of Vets could finally find relief in this collapsing economy.

We'll report on more GREAT finance options for non-military buyers in our next post.

Lori & G-II are licensed REALTORS® with Coldwell Banker Residential Brokerage. They can be reached by cell phone at either 602.574.5674 for Lori or 602.796.5674 for G-II or via eMail at Lori.and.G-II@GoAirForceHomes.info.  If you would like to CHAT with us LIVE, simply click the Goggle Talk icon.