Positive Real Estate Professionals

In October of this year President Bush signed into law the Veterans’ Benefit Act of 2008. This law is meant to help military veterans, regardless of whether they currently have a VA loan or not. This is a tremendous boost to veterans and the surviving spouses of veterans.

This act is targeted at veterans who obtained a subprime or conventional loan. It allows veterans to refinance into a VA guaranteed loan. The VA has never guaranteed subprime mortgages in the past. Two additional major stumbling blocks that prevented many veterans from utilizing a VA loan have been temporarily removed.

Refinancing VA loans were previously capped with a Loan To Value (LTV) of 90%. This new act will allow 100% LTV. Another obstacle that has been temporarily removed is the $144,000 loan limit. Depending on where you live, the new loan limit for refinancing may be as high as $729,750.

This should be a big help to veterans. It is important that the government make these modernizations and try to help our veterans, who served so honorably, keep their homes. If the federal government can give out bailouts to huge corporations, this is the least they can do for our veterans.

Read the details of Public Law 110-389 HERE.

Read an overview in the press release HERE.