| The Fair Credit Reporting Act and Your Legal Rights Sherry Frewerd 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 or visit www.homeloans.va.gov. —————— MilitaryConnection.com thanks you for your patronage. This web site is a portal of all things military, and we are quickly becoming the “go to” web site for all things military. We are constantly adding resources, content and features to benefit our audience. Our web site and all of the resources are free to users, and there is something for everyone. Additionally, we feature finance articles like this to keep you informed. If you belong to a group or organization, we will post your press releases, special events, newsletters, professional conferences and seminars, reunions, job fairs, and videos to help spread the word. One of the areas of our focus is connecting candidates from the military community with outstanding government and civilian employers. We know that candidates from the military community across the board have a work ethic second to none. They make highly valued employees. MilitaryConnection.com has a multitude of employment resources including a Directory of over 30,000 employers, Job Tips, Columns, our new and improved Job Board, Virtual Job Fair and much more. We understand the importance of education. Please check out our new Education section, featuring the most up to date information on the new GI Bill, Education Articles, Education Benefits, and the Scholarship Directory featuring thousands of scholarships. When the next tour is back home, it’s on MilitaryConnection.com. |