VA Loan Guaranty Increase Signed Into Law

Posted at 1:32 PM, Dec. 23, 2004

(NJAR Week in Review December 20, 2004 to December 23, 2004)
VA Loan Guaranty Increase Signed Into Law: President Bush signed the Veterans Benefits Improvement Act of 2004 (S. 2486) last week, a measure that increases the loan limit under the U.S. Department of Veterans Affairs Home Loan Guaranty Program to 25 percent of the Freddie Mac/Fannie Mae conforming loan limits. Effective immediately, the maximum VA guaranty will increase to $83,425 from the current $60,000, allowing borrowers to purchase homes valued up to $333,700. The previous limit was $240,000. On January 1, the Freddie/Fannie conforming loan limit will increase to $359,650. The VA guaranty also will increase to $89,913 and the maximum loan amount will go up to $359,650.