Veterans Benefits Improvement Act of 2008 (S. 3023)
10/28/2008
On October 10th 2008 President Bush signed into law S. 3023, the Veterans Benefits Improvement Act of 2008. In light of the current housing crisis and the overall rough economic times headed our way, this new law will accomplish many amazing things for our Nation's veterans and active military and thus help our overall economy. This article will focus on the benefits and effects to the VA home loan programs only, and if you want a full explanation of all the other areas of benefit, please click here.
Veterans Benfits Improvement Act of 2008 (S. 3023)
Increased Loan Limits
Some of the states that have been hit the hardest by this recent housing slump are CA, FL, NV, and AZ. These states also are home to many of our veterans and military home owners. The problem facing these homeowners is that the maximum loan amount that you can get on a VA home loan, has been $417,000 until the passing of this new bill. Average home prices in these states are much higher than the $417,000 maximum limit and this has caused many deserving veterans to have to get alternative loans like the sub prime loans that have caused so much of our current problems. One of the things that this new veteran bill does is increases loan limits on VA loans nationwide to $729,750 and even higher in Hawaii and Alaska.
Refinancing back into a VA loan is more accessible
Another problem that VA loan holders have faced nationwide is the difficulty in refinancing out of a conventional or non VA loan and getting back into a VA loan. Until the passing of this bill, veterans must have had at least 90% LTV or had at least 10% equity in their home or sometimes even more equity. It is common knowledge at this point, that very few people have any equity left in their homes and those that do, do not have much. Many military or VA loan holders were convinced and sometimes tricked into refinancing out of their VA loans and were put into not so friendly conventional or sub prime loans. These VA home owners have tried effortlessly to refinance back into a VA loan and have found it nearly impossible due to current VA loan guidelines. Under the new bill S.3023, it is now possible for veterans to refinance up to 100% of their home's value. This will open the door for many military home owners and will make it much easier for many of them to stay in their homes in these tough times.
Continuance of VA Hybrid Arms or adjustable rate loans
Due to the unique nature of veterans and especially active duty military, it is common for VA home owners to move frequently. By allowing veterans access to lower than normal interest rates via an ARM loan, veterans are better suited in cases where they know they will be ordered to relocate in the future.
Veteran home owners nationwide will immediately be able to enjoy the benefits they have long deserved, thanks to the Veterans Benefits Improvement Act of 2008!
