I am always looking for ways to help my fellow veterans and those serving our Country (Phone cards, care packages, benefits, etc). This new REFINANCE aspect of the Department of Veterans Affairs guaranteed home loan program, given the United States mortgage situation with sub-prime loans and the like, has simply not gotten the distribution and attention warranted. This one little option for veterans could easily be THE LIFESAVER they are looking for concerning getting out of a horrible home loan. The official press release from the VA is below. Link to further details at the end of the message. NOTE THIS IS THE VA, NOT A BUSINESS THAT IS TRYING TO GET YOUR BUSINESS.

WASHINGTON (Oct.24) -- Veterans with conventional home loans

now have new options for refinancing to a Department of

Veterans Affairs 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.

“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.”

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.

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.

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.

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.

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.

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.

For more information, or to obtain help from a VA Loan

Specialist, veterans may call VA at 1-877-827-3702 or visit

www.homeloans.va.gov.

It would be great if the CALIFORNIA STATE LEGISLATURE saw fit to make certain the CALVET loan program had the same option for Veterans living in California. Perhaps something they can make happen during the current economic/budget session, as this would help the California economy and taxes paid, even in the short term. Hmmmmm!