VA LOAN AMOUNT LIMITS STAY UP!!!!

THIS IS GOOD NEWS!!!!


WASHINGTON—The maximum loan limit on Department of Veterans Affairs guaranteed loans will remain at $729,750 for three more years under a bill passed by Congress.
The maximum limit on Fannie Mae, Freddie Mac and Federal Housing Administration loans is scheduled to drop down from $729,750 on Dec. 31 to $625,500 on Jan.1.
However, the Veterans Benefits Improvement Act that President Bush signed on Oct. 10 will allow veterans in the highest-cost areas of the U.S. to get zero-down loans of up to $729,750 until Dec. 31, 2011.
Until then, the VA loan limit will be the greater of $417,000 or 125% of area medium house prices up to $729,750. The VA bill (S. 3023) also removes restrictions on refinancing veterans with subprime loans or other conventional loans.
Previously, lenders could only offer to refinance those veterans into a $144,000 loan with 10% down and still get the full protection of VA's 25% loan guarantee