Many Americans, including our veterans, may be feeling the effects of current economic tough times. And, many homeowners fear that if they don?t get some relief fast, foreclosures may be in their future. Mortgage relief program qualifications may be in sight now that the Veterans? Benefits Improvement Act of 2008 has established new and better VA loan conditions. The bill sponsored by Senator Daniel Akaka (D- HI) and signed by the president into law October 10, 2008, includes major impacts to the VA Home Loan Guaranty Program. Understanding these impacts can help VA-eligible borrowers who qualify refinance under the new VA loan benefits and possibly stave off financial dire straits.
There are about forty (40) million dollars worth of grant that the government allocated this year alone meant for people in all walks of life. There are grants for education, mortgage payments, debt and special grants for American families with an annual income of 30,000 dollars or less.
VA loans closed during the period of January 1, 2009 through December 31, 2011 are subject to an increase in the maximum loan guaranty amount. As a result of the new law, the VA guaranty, previously capped at $417,000, now will be available on loans of up to $729,750 depending on the location of the home for which the VA loan is obtained. The loan limit increase will allow Department of Veterans Affairs to help a higher number of military personnel who currently have subprime mortgages (obtained with less-than-ideal qualifications) to refinance into safer, more affordable loans under VA guaranty. Though VA has never guaranteed subprime mortgages, VA-eligible borrowers feeling financially squeezed due to high rate subprime mortgages are potentially the greatest beneficiaries of this Act.
Improvements made to the VA home loan guaranty program under the new law are designed to help qualified veterans maintain adequate or suitable housing and protect veterans who may feel they may lose their homes to foreclosure. Increasing the loan-to-value ratio and raising the maximum loan amount available under the VA Home Loan Guaranty Program can save many homeowners from this doom.
Short Sale ? Here, the borrower is permitted to sell the property for a reduced price so that they can make the mortgage payment and be free from the debt. The deficit, if any, is usually borne by the lender. Though the lender may not recover the full market price, it still is a profitable proposition to them because a foreclosure involves a lot of costs.
Learn more about Obama Mortgage Relief Plan Qualifications.
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