Right now, loans backed by the U.S. Department of Veterans Affairs (VA loans) are capped based on market area.
WASHINGTON – March 3, 2016 – An effort is gaining ground to let veterans who use the federally backed, zero-down financing program to avoid worrying about loan caps. Right now, loans backed by the U.S. Department of Veterans Affairs (VA loans) are capped based on market area.
Currently, the caps make it difficult for veterans to buy a home that costs more than $417,000. That amount goes far in many markets, but in some markets, it doesn't even reach the median home price.
The House recently passed a bill that would eliminate loan caps for VA loans. Now it's the Senate's turn to act.
The National Association of Realtors® (NAR) played a role in getting the House to pass the bill, called the "Veterans Employment, Education, and Healthcare Improvement Act," H.R. 3016. Sherri Meadows – 2014 president of Florida Realtors and current NAR vice president – recommended changes to the loan caps in testimony before a House VA subcommittee.
Source: Robert Freedman, Realtor® Magazine
© 2016 Florida Realtors®. All rights reserved. Reprinted with permission.