Big Changes Coming for the VA Home Loan
Both the House of Representatives and the Senate have passed Bill S 3023, and the President is expected to approve this bill in the near future. When this bill passes, the VA Loan will be directly affected for the better. Here are some of the specifics included in the bill:
- You will be able to do 100% financing up to $729,750 (depending on your county) until December 31, 2011. Without this new legislation, these temporary increased loan limits would have expired on December 31, 2008, and you would be required to put down 25% of the difference over $729,000.
- This is expected to result in 4000 more VA Loans in the next 3 years!
- You will be able to refinance up to 100% of the value of your home! Without this new legislation, you would have to have either 10% equity (if your home is worth less than $240,000) or 25% equity minus $36,000 (if your home is worth more than $240,000).
- This will allow many Veterans to refinance their homes into a loan program that is more beneficial for them so they can lower their mortgage payments or consolidate their 1st and 2nd mortgages.
