House VA Subcommittee Votes to Increase VA Home Loan Guaranty Limit Increased by 39%
|May 26, 2004|
The U.S. House of Representatives' Veterans Affairs Benefits Subcommittee voted on two bills (H.R. 4345 and H.R. 1716) to increase the U.S. Department of Veterans Affairs loan guarantee to 25 percent of the conforming loan limits, which would allow loans up to more than $330,000. The current VA loan limit is $240,000.
The Committee also approved separate legislation, H.R. 4345, that would increase the maximum loan amount for loans under the VA home loan guaranty program. Under H.R. 4345, qualified servicemembers and veterans could receive a loan guaranty up to 25% of the Freddie Mac conforming loan rate (currently $333,700) to help secure mortgage financing. This legislation, sponsored by Reps. Ginny Brown-Waite (FL) and Susan Davis (CA), would also annually index the loan guaranty limit to the Freddie Mac conforming loan rate in the future.