For Your Benefit
For and about Hawaii's military

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See also: In The Military

New law allows eligible
veterans to buy a home
with no down payment

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Question: I heard that Congress recently passed legislation that would raise the Veterans Affairs home-loan ceiling. I was considering applying for a VA home loan. How will this affect me?

Answer: Congress did in fact pass legislation in December, and it was signed by the president. It increases the guaranty on Veterans Affairs home loans to $60,000 from $50,750. What this means to you is that eligible veterans can use their VA loan benefit to purchase a home costing as much as $240,000 without a down payment. Many lenders will make VA no-down-payment loans for four times the maximum guaranty amount.

The act also changed the native American veterans housing loan program. VA's direct loan program for native Americans assists those vets buying on trust land. VA issues the loan, not a private lender, which makes the program a little different from regular guaranteed home loans. While it has been difficult for veterans on trust lands to meet income requirements for loans on the mainland, the program has experienced most of its success in the Hawaiian and American Samoan home lands.

The act also increases specialty-housing grants to $48,000 from $43,000 for severely disabled veterans who need homes built to accommodate wheelchairs. The grant pays for such things as wider hallways, lowered kitchen appliances and counter tops and bigger bathrooms. Veterans can use both a grant and a regular VA-guaranteed loan to cover the total cost of their home purchase. The new law also extends housing loans for National Guard and Reserve personnel from September 2007 to Sept. 30, 2009. Reserve component personnel are authorized the same home-loan guarantees as active-duty personnel. For more information on home loans, call 433-1000; press 2 for general benefits and then 3 for loan guarantee information.

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If you have questions about your benefits as a veteran,
call Fred Ballard at the Veterans Affairs at 433-0049
or the Star-Bulletin at 529-4747.

Gregg K. Kakesako, who covers military affairs for the Star-Bulletin,
can be reached by phone at 294-4075
or by e-mail at gkakesako@starbulletin.com.