Those looking to take out a VA home loan may want to act soon. According to The American Legion, unless Congress intervenes, the limits for home loans issued by the Department of Veterans Affairs may soon be reduced in high-cost counties.
The American League is calling on lawmakers to prevent VA loan limits, that are currently set at $729,750, from being reduced to $625,000 per applicant at the beginning of 2012.
“We worked long and hard, then saw a wave of support just before Veterans Day to pass a jobs bill for veterans and other related initiatives,” said American Legion national commander Fang A. Wong. “It’s a genuine disappointment to see that momentum fail, now that Veterans Day has passed.”
So far, Congress has pulled proposals to extended VA loan limits twice this year – most recently from the Hire America’s Heroes Act – recently signed into law by President Barack Obama.
However, the recently passed legislation to raise caps for Federal Housing Authority loans in high-cost counties will do little to assist VA borrowers. This is because the average VA borrower has less that $7,000 in assets, while 90 percent receive a loan without any down payment, says American League legislative division director Tim Tetz.
Latest posts by ChuckM (see all)
- A Millennial Guide to Buying Your First Home - January 4, 2017
- Getting to the Truth: Top Mortgage Misconceptions and Facts - December 28, 2016
- What Are the Most Common Reasons Why People Get Turned Down for Loans? - December 14, 2016