Congress and the VA need to act NOW!
8/13/2008
Will Congress and the Department of Veterans Affairs do what is right and extend the benefits of the Veteran's Benefit Act of 2003? In 2003 the VA decided to "test" or "pilot" a new loan for veteran home owners. This loan was the adjustable rate mortgage loans that had become so popular among conventional borrowers. In the prior recent years, the VA had adhered to strict 30 and 15 yr loan terms and the array of loan products available to veterans was considered pretty limited. As part of the benefits act, the VA decided to allow Lenders to originate adjustable rate loans (ARMS) to veteran home owners. Unlike conventional ARMS, the VA took extra precaution and made special limitation and rules that these loans would have to follow. For Example, the VA loan would carry some characteristics of fixed rate loans. In layman's terms, it was the best of both worlds and was given the name HYBRID ARM.
Veteran home owners jumped all over this product and immediately started enjoying its benefits. Many military home owners, because of their career choices, are required to move from home to home over the years, and this is where the ARM loan is so beneficial. As a veteran, if you know you are not going to be in your home very long, it may be a better decision to take advantage of an initially lower rate and go with an ARM. For more information on how the ARM loan works, feel free to visit http://www.LowVARates.com. The purpose of this article is not so much to explain the ARM benefits but to bring to everyone's attention that the "test" or "pilot" period for the VA Hybrid Arm is over as of the end of September 2008. There is a very strong opinion currently that this is a huge detriment to our military community and needs to be addressed immediately!
The action of all veteran home owners and all real estate professionals is needed immediately. LowVARates.com is urging all veterans and anyone else that supports the benefits granted to our heroic men and women, to email, write, or call their LOCAL VA OFFICE and urge them to act quickly to permanently extend the veteran's right to take advantage of ARM loans just like the rest of the conventional borrowers in the marketplace. For details on who to contact or email, please follow these instructions below.
Contacting your VA representative:
Click this link for websites and phone numbers (http://www.homeloans.va.gov/rlcweb.htm)
If you would prefer to email them click here (http://www.homeloans.va.gov/rlcmap.htm) CLICK ON THE STATE MAP and it will bring up the email address to send to.
Please explain to whomever you contact that you feel it is a big disservice to veteran home owners everywhere and those that would like to purchase a home in the future, to limit the loan products available to our nation's finest.
Remember that the benefits are many in regards to the VA HYBRID LOAN:
- Substantially lower interest rates for 3 to 5 yr periods
- In a tightening mortgage market with high commodity prices, the ARM loan allows for easier payment schedules your first few years as a new home owner.
- When refinancing, a borrower is given the choice of lower payments over a given time. This allows a borrower the ability to plan and budget around changes in income and expenses of living.
LowVARates.com is a website dedicated to education potential and current veteran home owners and also putting them in contact with VA Approved Lenders.
