Under the Veterans Benefits Improvement Act of 2004, which President Bush signed
on Dec. 10, home ownership will be more affordable for many veterans. Veterans now
will be able to get no-down-payment loans of up to $359,700, up from the previous
ceiling of $240,000. VA-guaranteed home loans are made by banks and mortgage
companies to veterans, service members and reservists. With VA guaranteeing part
of the loan, veterans can receive a good interest rate without having to make a
down payment. The new law also allows for loan limits to keep pace with rising
home values. In addition it allows VA to guarantee one-year adjustable rate
mortgages (ARMs) and it extends, through 2008, VA’s “hybrid ARM program,” which
allows veterans to lock in a favorable interest rate for at least three years. For
more information, go to
target=”_blank”>www.homeloans.va.gov
