Tuesday, June 10, 2008
Are you a vet in some mortgage trouble?
If so, your friendly neighborhood VA counselor would like to talk to you.
With thousands of service members and veterans having lost homes or facing foreclosure as the mortgage crisis continues, lawmakers are pushing legislation to raise VA loan ceilings, lower VA funding fees and expand the VA's ability to help veterans to refinance loans they can't afford.
The Department of Veterans Affairs, meanwhil
Unfortunately, VA won't refinance anything greater than their now archaic refi limit of $144,000, with a 10% equity requirement. Also, acording to the article, Sen. Daniel Akaka (D-HI) has a bill that would raise the VA loan cap to $730,000 as does Rep. Bob Filner (D-CA). That would bring it into line with other federal loan prgrams. VA itself opposes the measure. (It does seem pretty high to me, and I live in an expensive market.)
Splash, out
Jason
With thousands of service members and veterans having lost homes or facing foreclosure as the mortgage crisis continues, lawmakers are pushing legislation to raise VA loan ceilings, lower VA funding fees and expand the VA's ability to help veterans to refinance loans they can't afford.
The Department of Veterans Affairs, meanwhil
e, is encouraging military members, veterans and surviving widows with at-risk loans to seek advice from VA loan counselors even if their loans are not VA-guaranteed.
VA loan experts lack authority to restructure or renegotiate loans not backed by VA. But they can advise veterans on their options and on how they might negotiate with mortgage holders to avoid default.
VA's effort to reach mortgage holders in distress now includes a toll free number (1-877-827-3702) that automatically directs callers the nearest of nine VA regional loan centers. VA loan counselors have helped 74,000 homeowners since 2000, including half of all VA loans in serious default last year, thus saving the government nearly $1.5 billion, officials contend.
The VA Loan Guaranty program avoided the subprime loan debacle. While delinquency rates have climbed over the past five years for subprime, FHA and prime mortgages, delinquencies have fallen for VA-backed loans.
Unfortunately, VA won't refinance anything greater than their now archaic refi limit of $144,000, with a 10% equity requirement. Also, acording to the article, Sen. Daniel Akaka (D-HI) has a bill that would raise the VA loan cap to $730,000 as does Rep. Bob Filner (D-CA). That would bring it into line with other federal loan prgrams. VA itself opposes the measure. (It does seem pretty high to me, and I live in an expensive market.)
Splash, out
Jason
Labels: politcs, Real Estate, soldier's issues, veterans
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