VA No Down Payment Loan Limits Increased

The Department of Veterans Affairs (VA) is raising ceilings on its no down payment home loans from the current $417,000 to as much as $729,000. The increases are effective immediately under legislation recently enacted by President Bush's signing of the Housing and Economic Recovery Act of 2008.

The new law also improved the VA’s Specially Adapted Housing Program. It raises primary grants from $50,000 to $60,000 toward constructing a new home or modifying an existing home to meet the needs of veterans or active duty service personnel with certain service-connected disabilities. Additional new features to this program are a provision that allows veterans with certain service disabilities arising from severe burns to receive the adaptive housing grants and another that makes future increases to ceilings on the Specially Adapted Housing Program automatic.

The increased limits in the general home loan program for all veterans’ home purchases or construction will be based on local county housing costs, tied to the similar locality adjustments of HUD, Fannie Mae and Freddie Mac.

VA home loans are available for veterans to purchase or construct single-family homes, and to purchase condominiums or cooperative apartments. There are currently about 2.3 million existing VA home loans and more than 90 percent were made with no down payment.

Metro Mortgage Company is a federally regulated Mortgage Banker specializing in residential Florida home loans including Conventional, Jumbo and FHA/VA mortgages. Call us today at 888-617-3674.

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