House Passes VA Bill

The House has passed a bill that will allow veterans and military personnel to get no-downpayment loans of up to $333,700, which is the Fannie Mae/Freddie Mac conforming loan limit."This is a big boost for the VA program," said Keith Pedigo, director of the Department of Veterans Affairs' Loan Guaranty Service, and it will significantly stimulate volume in some high-cost areas. The current VA loan limit is $240,000. Mr. Pedigo noted that the VA has received many complaints from veterans who can't use their home loan benefits because of the cost of housing in their area. The Senate already passed the VA bill (S. 2486), which also gives the VA more flexibility in setting interest rate caps on its hybrid adjustable-rate mortgage program. The House vote clears the measure so it can be sent to the White House for the president's signature.