Here's a great blog! There are many veterans who did not know they can refinance their conventional loans. Plus, if they currently are in a sub-prime loan, this could potentially save them thousands, or even their house. By the way, the best thing the DVA did was raise the refinance limit!!!
If you'd like to comment please click through to Bruce's original post as I have disabled comments on this reblog.
In October of 2008, the President signed the Veterans’ Benefits Improvement Act into law. The act provided a variety of changes in benefits for military veterans, including the ability to apply for VA refinancing from conventional home loans into VA mortgages.
According to a VA press release, the program is designed for both conventional and subprime loans. According to the VA, “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.”
There are other changes–the maximum loan amount has been raised for these 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” according to a VA press release.
The higher loan-to-value ratio combined with a higher maximum loan amount gives qualified borrowers a better chance at VA refinancing. The Secretary of Veterans Affairs was quoted in the press release saying, “These changes will allow VA to assist a substantial number of veterans with subprime mortgages refinance into a safer, more affordable, VA guaranteed loan…Veterans in financial distress due to high rate subprime mortgages are potentially the greatest beneficiaries.”
While those with subprime loans are given more attention in this particular press release, conventional borrowers should not hesitate to apply for VA refinancing–any veteran interested in VA refinancing from conventional loans should call 1-877-827-3702 or visit www.homeloans.va.gov to get more information on the program, who is eligible and how to apply.