Congress has approved legislation, supported by the National Association of Realtors, which aims to make home ownership more affordable for veterans.

The legislation increases loan guaranty limits on mortgages backed by the U.S. Department of Veterans Affairs to 25 percent of the Fannie Mae and Freddie Mac conforming loan limits. The new guaranty amount of $83,425 will enable qualified veterans to secure VA loans on homes priced up to $333,700.

The loan guaranty will also now be indexed to allow for annual adjustments. The association estimates that an additional 90,000 veterans will be able to utilize VA financing for their home purchase because of this higher loan limit.

U.S. Reps. Ginny Brown-Waite, R-Fla., and Chris Smith, R-N.J., and Sens. Jon Corzine, D-N.J., and Lisa Murkowski, R-Alaska, introduced the legislation, H.R. 4345/S. 2522, earlier this year. President Bush is expected to sign the bill.

“The increase in the VA home loan guaranty will make it easier for more veterans, especially those living in areas with high housing costs, to own their own homes,” said Al Mansell, association president and CEO of Coldwell Banker Residential Brokerage in Salt Lake City. “Realtors around the country are proud to support legislation that will help more veterans who’ve served our country with honor achieve the American dream of home ownership.”

More than 29 million veterans and service personnel are eligible for VA financing. The VA loan home loan guaranty program, created under the GI Bill in 1944, encourages private lenders to offer favorable home loan terms to qualified veterans. Under this program, the government guarantees 25 percent of the mortgage loan amount, enabling veterans to borrow up to four times the guaranty with no down payment.

***

Send tips or a Letter to the Editor to glenn@inman.com or call (510) 658-9252, ext. 137.

Show Comments Hide Comments

Comments

Sign up for Inman’s Morning Headlines
What you need to know to start your day with all the latest industry developments
By submitting your email address, you agree to receive marketing emails from Inman.
Success!
Thank you for subscribing to Morning Headlines.
Back to top
The best event in real estate kicks off next week! Tickets are selling quickly.Register Now×
Limited time: Get 30 days of Inman Select for $5.SUBSCRIBE×
Log in
If you created your account with Google or Facebook
Don't have an account?
Forgot your password?
No Problem

Simply enter the email address you used to create your account and click "Reset Password". You will receive additional instructions via email.

Forgot your username? If so please contact customer support at (510) 658-9252

Password Reset Confirmation

Password Reset Instructions have been sent to

Subscribe to The Weekender
Get the week's leading headlines delivered straight to your inbox.
Top headlines from around the real estate industry. Breaking news as it happens.
15 stories covering tech, special reports, video and opinion.
Unique features from hacker profiles to portal watch and video interviews.
Unique features from hacker profiles to portal watch and video interviews.
It looks like you’re already a Select Member!
To subscribe to exclusive newsletters, visit your email preferences in the account settings.
Up-to-the-minute news and interviews in your inbox, ticket discounts for Inman events and more
1-Step CheckoutPay with a credit card
By continuing, you agree to Inman’s Terms of Use and Privacy Policy.

You will be charged . Your subscription will automatically renew for on . For more details on our payment terms and how to cancel, click here.

Interested in a group subscription?
Finish setting up your subscription