| Lawmakers seek to boost home-buying benefit
The House Veterans' Affairs Committee is focusing on how to use the veterans' home loan program to help service members and veterans who risk losing their homes. Reps. Steve Buyer, R-Ind., and Mike Michaud, D-Maine, introduced a bill Thursday that would greatly increase the maximum loan amount that the Department of Veterans Affairs guarantees. The bill, HR 4539, would raise the current $417,000 limit to a new maximum of $521,250. Buyer, the former committee chairman, said the chief reason for the increase is that the $417,000 cap is so low that it precludes service members and veterans from using the program in some high-cost areas of the country. "Rising housing costs are keeping many veterans out of the market," Buyer said. "And those who are able to purchase the American Dream are paying significantly higher closing costs." Buyer said the bill also would make it easier for people with non-VA loans to refinance under the government guaranty program by capping refinancing fees — which currently are larger for refinancing than for new loans — and could relax rules on who must pay closing costs, both actions that would make the VA loan program more attractive.
Falling mortgate rates viewed as a plus-side to buyers, refinancers
Mortgage rates fell to the lowest rates in nearly four years this week, which could trigger an increase in mortgage refinancing and home buying. "We have actually seen an increase in applications," Jodi Melton, vice president and South Reg ional retail manager for Fifth Third Bank here. .
Government, lenders helping people with mortgage woes
The mortgage crisis is leading lenders to be more open to helping people who get into trouble with their payments. “Lenders are going to work with every customer to understand what their situation is and try to come to a resolution," said Joseph Culver, treasurer of the Mortgage Bankers Association of Northeastern New York. “You have some consumers out there that just cannot make the payments because of the type of product they were originally put into; payments are increasing drastically," Culver said. Culver said in some cases, banks will adjust the terms of the mortgage. “Instead of increasing from 6 to 8 [percent], they'll maybe hold it at 6 [percent] for another year," Culver said. “There's multiple options, but again there is not just kind of a blanket statement that every lender can offer this.
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