|
|
|
| |
Lawmakers seek to boost home-buying
benefit |
|
|
| |
By Rick Maze - Staff writer - Friday Dec 14,
2007
The House Veterans’ Affairs Committee is
focusing on how to use the veterans’ home loan
program to help service members and veterans who
risk losing their homes.
Reps. Steve Buyer, R-Ind., and Mike Michaud,
D-Maine, introduced a bill Thursday that would
greatly increase the maximum loan amount that
the Department of Veterans Affairs guarantees.
The bill, HR 4539, would raise the current
$417,000 limit to a new maximum of $521,250.
Buyer, the former committee chairman, said the
chief reason for the increase is that the
$417,000 cap is so low that it precludes service
members and veterans from using the program in
some high-cost areas of the country.
“Rising housing costs are keeping many veterans
out of the market,” Buyer said. “And those who
are able to purchase the American Dream are
paying significantly higher closing costs.”
Buyer said the bill also would make it easier
for people with non-VA loans to refinance under
the government guaranty program by capping
refinancing fees — which currently are larger
for refinancing than for new loans — and could
relax rules on who must pay closing costs, both
actions that would make the VA loan program more
attractive.
“With affordable housing so scarce in many areas
of the nation, the increased guaranty and
closing cost assistance should be very
advantageous to both our nation’s veterans and
home builders,” said Michaud.
Buyer and Michaud may be the first out of the
gate, but the committee’s chairman, Rep. Bob
Filner, D-Calif., said Friday that he is working
on his own home loan plan that would provide
maximum loans of $620,000, waive or relax fees,
and cut some red tape that makes it especially
difficult to use the VA program to purchase
certain types of housing, such as condominiums.
Filner said he is even thinking about including
a provision that would prevent a lender from
foreclosing on the home of anyone on active
duty.
Filner called the current VA loan program
“irrelevant” because of the loan caps, high fees
and strict underwriting and appraisal
requirements that discourage homebuyers, real
estate and mortgage brokers and sellers from
using the program.
Filner said it is not clear that any veterans’
loan-related legislation could pass Congress
this year, “but at least we can get started. |
|
|
|
