Almost 65 years ago, President Franklin D. Roosevelt signed the original GI Bill, including the VA Home Loan Guaranty Program.  It provided veterans with a federally guaranteed home loan, with no down payment, making the dream of home ownership a reality for millions of returning World War II veterans. 

The Home Loan Guaranty Program not only made home ownership possible, it helped to spur economic growth at the time.  The program has continued since then, with adjustments based on economic recalculations.  Today, more than 25 million veterans and service members are eligible for VA home loan guarantees. 

The recently enacted Economic Stimulus Act of 2008, while temporarily resetting several federal home loan guarantee limits, failed to include the Veterans Home Loan Guaranty Program.  I am pleased to let you know that I am working on a bill (S.2768) to correct this omission so that the higher loan limit will be available to veterans as well.  S.2768 would also extend the temporary increase to December 31, 2011, enabling more veterans to utilize their VA benefit to purchase a home. In fact, VA predicts that there would be an increase of approximately 4,313 loans as a result of increasing the VA loan limit through December 2011.

I am pleased to cosponsor this legislation building on one of America’s best programs – one that demonstrates our appreciation of our veterans and service members. 

Sincerely,

Barbara Boxer
United States Senator