New options available to finance and refinance with a VA Loan

On October 10th President Bush signed The Veterans Benefits Improvement Act which adds some ground breaking improvements for home owners and home buyers who are eligible for a VA loan.   Most notably....
 

• During the housing boom many veteran's purchased homes using conventional financing to make their offers more favorable to sellers or to purchase in a price range that was higher than the current VA loan amount.  Those loans sometimes came with terms that were not as good as they could have received with a VA loan.   Previous to this act refinancing from a conventional loan (or any other type of loan) to a VA loan required that the veteran have at least 10% equity in their home.  So, for example.  If you owned a $400,000 home, VA would only allow you to financing a maximum of $360,000 on it.  You can now finance up to 100% of your homes value with a VA loan or refinancine (up to the maxumium allowable in your area) 
  
  
• VA had also said no to adjustable rate mortgages earlier this year.  Adjustable rate mortgages are now available with a VA loan but should be carefully considered as we are in a declining value market here in the Fort Meade area.   You don't want to end up owing more that your home is worth without putting a dent in your equity each month.
   
• And finally, the temporary increase in the amount that you can borrow using a VA loan has now been given some permanency as the higher loan limits (up to $729,750) are now in place through December 31st  2011.

This new act will be a breath of fresh air to home owners who are working with adjustable rate mortgages that may be ready to increase.   It is intended to provide relief to military families who already face moves every 2 -3 years.

The Fort Meade  Homes Team specializes in real estate near Fort Meade Maryland including the cities of Severn, Odenton, Crofton, Piney Orchard and Gambrills.  If you need information on home financing, purchasing or selling you can count on our military family for the very best in market knowledge and customer service.

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