On October 10, 2008, the President signed the Veterans' Benefits Improvement Act of 2008. Following are the three major impacts to the VA Home Loan Guaranty Program:
1. Authority to guarantee adjustable rate mortgages (ARMs) and hybrid adjustable rate mortgages (HARMs) has been extended through September 30, 2012. Not a big deal I'm not a big fan as a VA orginator in their ARM loans. I haven't sold a single VA ARM.
2. The maximum guaranty for cash-out refinance loans has been made the same as purchase loans - they are no longer limited to $36,000. In addition, cash-out refinance loans may now be made up to 100% of the appraised value of the home. Wow this is huge news!! I've always gripped about previous the cash out limits of 90%. If you want to do a VA Refinance now is the time!
3. The temporary increase to the maximum guaranty has been extended through December 31, 2011. When combined with new locality-based Freddie Mac conforming loan limit in January 2009, VA's maximum county “loan limit” will be $1,094,625 ($1,641,937.50 in Alaska, Guam, Hawaii, and the Virgin Islands). This results in unique county "loan limits" for VA. This notice is meant to provide general information regarding the major impacts of the recently passed legislation. Awesome, this extends the VA Jumbo Loan limits in high cost areas. Click here for more information regarding VA Home Loans or VA Home Loan Purchase info.
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