The Senate VA Committee approved a bill July 20 that increases the mortgage amount veterans can qualify for through the VA home loan program. S. 2486, the Veterans Benefits Improvement Act of 2004, raises the maximum mortgage to $333,700. The House approved a similar measure June 23 (August 2004 Washington Wire).
The Senate bill also extends through 2011 VA's ability to back adjustable-rate mortgages in addition to fixed-rate mortgages. It also would waive the 1% fee active-duty GIs are required to pay on the value of a loan. Currently, the fee is only waived for service-connected disabled vets.
In addition, the bill makes it easier for Guardsmen and Reservists to qualify for Montgomery GI Bill benefits. Instead of serving 24 consecutive months, they could become eligible after 24 months of cumulative service after Sept. 11, 2001. They would still be required to pay the $1,200 contribution.
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