Numerous factors help keep VA loans powerful even in a recession: fresh improvements in veterans’ benefits, the VA outreach program, and the abilities of personal mortgage lenders to implement the VA Home Loans benefits in an economic slump.
In October 2008 the Veterans’ Benefits Improvement Act of 2008 was passed into law. The new law made the guidelines under which VA-eligible borrowers can obtain Mortgages Refinancing more attractive than ever. Primary, the greatest guaranty for cash-out refinance loans was made the same as that for purchase loans. Also, just like purchase loans, VA-eligible borrowers can now refinance up to 100% of the appraised property value. And, the ceiling has been raised for VA’s refinance loans; unique county loan limits have been established for 2009 that maximize the VA guaranty for loans over $417,000. Finally, the VA’s authority to guaranty ARMs and Hybrid ARMs has been extended to September 30, 2012. The Federal Government’s guaranty is secured by VA counselors who help veterans keep their homes even in the toughest financial period.
