The Military Home Programs' Blog

The VA Loan Gets an Overdue Presidential Boost

On July 30, 2008, nearly four months after the March stimulus bill to boost the housing market, the Housing and Economic Recovery Act of 2008 passed, allowing the VA to guaranty loans to an increased loan limit. What does this mean for San Diego County military members? It means that the VA Loan is now available for purchase prices up to $697,500 with a zero down payment! Wow!

The new legislation is exciting because there is a greater chance for veterans to purchase an appropriate first home, whether they are new to military service or retiring. Of course, there are obstacles to be aware of. For one, as the bill is written, the new loan limits will cease to exist on December 31, 2008. Although there is an expectation that the bill will be extended, there is no written guarantee. So now may be the optimal time to buy with higher loan limits and historically low interest rates. To make matters worse, many lenders may not offer the higher VA loan limits with 100% financing. The government has passed the legislation but it is still up to investors and lenders to implement the changes.

As always, it is better to find a lender specializing in VA loans when purchasing or refinancing a home. A VA lending expert will ensure you are getting the most up to date information allowing the greatest use of your VA loan. You and your family deserve the best!