Enhanced VA Mortgage Options Now Available for Veterans

[Rocky C]

FOR IMMEDIATE RELEASE





Enhanced VA Mortgage Options Now Available for Veterans


Of Potential Benefit to Those in Financial Distress


WASHINGTON (Oct.24) -- Veterans with conventional home loans now have
new options for refinancing to a Department of Veterans Affairs (VA)
guaranteed home loan. These new options are available as a result of
the Veterans' Benefits Improvement Act of 2008, which the President
signed into law on October 10, 2008.



"These changes will allow VA to assist a substantial number of veterans
with subprime mortgages refinance into a safer, more affordable, VA
guaranteed loan," said Secretary of Veterans Affairs Dr. James B. Peake.
"Veterans in financial distress due to high rate subprime mortgages are
potentially the greatest beneficiaries."



VA has never guaranteed subprime loans. However, as a result of the new
law VA can now help many more veterans who currently have subprime
loans.



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.



Originally set to expire at the end of this month, VA's authority to
guaranty Adjustable Rate Mortgages (ARMs) and Hybrid ARMs was also
extended under this new law through September 30, 2012. Unlike
conventional ARMs and hybrid ARMs, VA limits interest rate increases on
these loans from year to year, as well as over the life of the loans.

Since 1944, when home loan guaranties were offered with the original GI
Bill, VA has guaranteed more than 18 million home loans worth over $911
billion. This year, about 180,000 veterans, active duty servicemembers,
and survivors received loans valued at about $36 billion.



For more information, or to obtain help from a VA Loan Specialist,
veterans may call VA at 1-877-827-3702

[Alisium]

This is the best thread I could find for this, I dare not make a new one.

Could someone explain to me, like I am an idiot (because I really am) what the VA home loan really is and why it's beneficial for me? I just don't understand it.

The only benefit I see, right now, is not having to put any money down and pay mortgage insurance.

[thewookie]

Not paying mortgage insurance can save you a lot of money per month, depending on the loan amount. That is a big benefit, and the no-money down deal is good to go, especially since you get a rate...

[DocGreek]

MIKE....I will NEVER, NEVER, pay ANY closing costs! This is a buyer's market, and the home owner, or the foreclosing bank, WILL pay the closing costs. The V.A. process is there to HELP THE BUYER...in EVERY WAY!!! Banks have SO MANY short sales, they CAN NOT keep up. The V.A. appraises the house, checks ALL the county records, and gives the buyer a very fair chance. Do the V.A. mortgage, through your bank, and start a savings account, to show stability. AND...it's a lot easier to SELL a house with a V.A. mortgage on it!! ASK LOT'S OF QUESTIONS!!!.....DOC