WASHINGTON – Legislation recently signed by President Bush makes home ownership more affordable for many veterans.
Changes under the law mean veterans will be able to get no-downpayment loans of up to $359,700. The previous ceiling was $240,000.
“Now, more than ever, veterans will be able to make their dreams of home ownership a reality,” said Secretary of Veterans Affairs Anthony J. Principi.
VA-guaranteed home loans are made by banks and mortgage companies to veterans, service members and reservists. With VA guaranteeing part of the loan, veterans can receive a good interest rate without having to make a downpayment.
The changes took effect Dec. 10 when President Bush signed into law the Veterans Benefits Improvement Act of 2004. The law also allows for loan limits to keep pace with rising home values.
The new law allows VA to guarantee one-year adjustable rate mortgages (ARMs) and it extends, through 2008, VA’s "hybrid ARM program," which allows veterans to lock in a favorable interest rate for at least three years.
