| Veterans
News Flash 
VA
Raising Home Loan Ceilings in
Many Areas
Improved Benefits Aid Disabled Veterans in Adapting
Homes
WASHINGTON – The
Department of Veterans Affairs (VA) will use
a locality-based approach in raising ceilings
on its no-downpayment home loans from the current
$417,000 to as much as $729,000.
The increases are effective immediately under
legislation recently enacted with President Bush
signing the Housing and Economic Recovery Act of
2008.
That law also improved 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 adaptive
needs of Veterans or active duty servicemembers
with certain service-connected disabilities.
One new feature is a provision in the law that
will assist burn victims. It will allow Veterans
with certain service-connected disabilities resulting
from severe burns to receive the adaptive housing
grants. The new law also makes future increases
in 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 housing costs, tied to the
similar locality adjustments of the Federal Home
Loan Mortgage Corp., 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
about 2.3 million existing VA home loans, more
than 90 percent made with no down payment.
More information about VA
home loans and adaptive grants is available from
VA at 877-827-3702 or www.homeloans.va.gov.
SOURCE:
US Department of Veterans Affairs
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