Thursday, April 17, 2008

VA loans For Veterans Left Out Of Economic Stimulus Bill

It's been described as a big "goof up" on Capitol Hill. When Congress passed the bi-partisan $150 billion stimulus package to raise the the loan limits for homeowners in high cost areas across the country, it left out VA loans. Fannie Mae, Freddie Mac and FHA all got their limits raised to $729,750 from $417,000 as part of the stimulus package. By completely leaving out the VA loan limits, it affects about 11,000 VA loans processed each month. It puts the VA borrower at a big disadvantage to other borrowers. For veterans looking to purchase homes in high priced areas like San Diego, the loan increase would greatly impact their buying power. It could mean a difference between a condo or a detached home. This is clearly an embarrassment for Congress.

To fix the problem, several Congressional representatives are rushing to pass bills including a "stimulus fix" bill. Stay tuned for updates.

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