> http://www.homeloans.va.gov/
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> FOR IMMEDIATE RELEASE
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> Enhanced VA Mortgage Options Now Available for Veterans
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> Of Potential Benefit to Those in Financial Distress
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> WASHINGTON (Oct.24) -- Veterans with conventional home loans now have new
> options for refinancing to a Department of Veterans Affairs (VA) guaranteed
> home loan. These new options are available as a result of the Veterans'
> Benefits Improvement Act of 2008, which the President signed into law on
> October 10, 2008.
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> "These changes will allow VA to assist a substantial number of veterans with
> subprime mortgages refinance into a safer, more affordable, VA guaranteed
> loan," said Secretary of Veterans Affairs Dr. James B. Peake. "Veterans in
> financial distress due to high rate subprime mortgages are potentially the
> greatest beneficiaries."
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> VA has never guaranteed subprime loans. However, as a result of the new law
> VA can now help many more veterans who currently have subprime loans.
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> The new law makes changes to VA's home loan refinancing program. Veterans
> who wish to refinance their subprime or conventional mortgage may now do so
> for up to 100 percent of the value of the property. These types of loans
> were previously limited to 90 percent of the value.
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> Additionally, Congress raised VA's maximum loan amount for these types of
> refinancing loans. Previously, these refinancing loans were capped at
> $144,000. With the new legislation, such loans may be made up to $729,750
> depending on where the property is located.
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> Increasing the loan-to-value ratio and raising the maximum loan amount will
> allow more qualified veterans to refinance through VA, allowing for savings
> on interest costs or even potentially avoiding foreclosure.
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> Originally set to expire at the end of this month, VA's authority to
> guaranty Adjustable Rate Mortgages (ARMs) and Hybrid ARMs was also extended
> under this new law through September 30, 2012. Unlike conventional ARMs and
> hybrid ARMs, VA limits interest rate increases on these loans from year to
> year, as well as over the life of the loans.
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> Since 1944, when home loan guaranties were offered with the original GI
> Bill, VA has guaranteed more than 18 million home loans worth over $911
> billion. This year, about 180,000 veterans, active duty servicemembers, and
> survivors received loans valued at about $36 billion.
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> For more information, or to obtain help from a VA Loan Specialist, veterans
> may call VA at 1-877-827-3702 or visit <http://www.homeloans.va.gov/>
> www.homeloans.va.gov.
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