The House has passed a bill that would increase the VA loan guarantee limit so that veterans and military personnel could get no-downpayment loans of up to $333,700 -- which is the Fannie Mae/Freddie Mac conforming loan limit.The bill (H.R. 4345) would set the Department of Veterans Affairs guarantee limit at 25% of the conforming loan limit, effectively raising the government guarantee from $60,000 to $83,435. Currently, the VA guarantee goes up to $60,000, and lenders can sell no-downpayment VA loans into the secondary market with a principal balance of up to $240,000. The bill, sponsored by Rep. Ginny Brown-Waite, R-Fla., also indexes the VA loan guarantee limit to the conforming loan limit, which is adjusted annually. Sen. Jon Corzine, D-N.J., has introduced a similar bill in the Senate.

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