American Forces Press Service reports that the recently-passed Veterans Education and Benefits Expansion Act of 2001 has increased the guaranty on VA home loans from $50,750 to $60,000. The increase means eligible veterans can use their loan benefit to purchase a home costing as much as $240,000 without a down payment. Previously, the maximum guaranty was $50,750, which allowed no-down-payment loans of up to $203,000. The act also extends the VA's Native American veterans housing loan program to Dec. 31, 2005. The program's loan ceiling is $80,000, except in certain high-cost areas where the VA has approved up to $120,000. In addition, the act increases specialty housing grants from $43,000 to $48,000 for severely disabled veterans who need homes built to accommodate their disabilities. Another grant program for housing adaptations for less seriously disabled vets had its ceiling raised to $9,250 from $8,250. Finally, the new law also extends housing loans for National Guard and Reserve personnel from September 2007 to September 30, 2009. Reserve component personnel are authorized the same home loan guarantees as active duty personnel.
Military.com has a free online tool to help servicemembers determine if they are eligible for a VA home loan. The tool calculates eligibility for active duty, Reserve/Guard, veterans and retired members, as well as spouses interested in using the benefit. In addition, the tool also provides downloadable forms necessary for beginning the VA loan process. For more on VA home loans and how to take advantage of them, visit the Military.com Home Buying Center.
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