Attention Veterans!

(VA Lending Limits are up to $417,000)

Attention Veterans: The GI Bill is there for you! One of the easiest, fastest, and least costly ways for U. S. veterans to purchase a home is offered through the Montgomery GI Bill, and by serving in the United States Armed Forces, you have earned it.

A veteran who meets eligibility qualifications can purchase a home with "0" down payment, reduced closing costs, and interest rates that are usually comparable to, or lower than, conventional rates. There is no prepayment penalty, no mortgage insurance, and qualification standards, credit and income, are less stringent than with other options. This substantially increases the chances of a veteran who wants to purchase a home.

You are eligible for VA loan benefits if you served on active duty in the Army, Navy, Air Force, Marine Corps, or Coast Guard for:

• 24 continuous months or more, or the full term ordered to serve.
• At least 181 days of continuous service during peacetime.
• Not less 90 days during wartime.

VA real estate loan benefits also apply if a veteran:

• was discharged under conditions other than dishonorable.
• was discharged for a service-connected disability.
• was discharged for the convenience of the government after completing at least 20 months of a 2-year enlistment.
• was discharged because of a hardship.
• was determined to have a service-connected compensable disability.
• was discharged or released from active duty for a medical condition which pre-existed service and has not been determined to be service-connected.
• received an involuntary discharge or release from active duty for the convenience of the Government as a result of a reduction in force.
• was discharged or released from active duty for a physical or mental condition not characterized as a disability and not the result of misconduct but which did interfere with your performance of duty.
• are an unremarried spouse of a veteran who died while in service or from a service connected disability.
• are a spouse of a serviceperson missing in action or a prisoner of war.

As of January 1, 2006, the guaranteed maximum VA loan amount, with no down payment, increased to $417,000. This amount can increase to at least $625,500 in certain high cost areas.

VA also allows the seller to pay all of the veteran's closing cost as long as the cost do not exceed 4% of the sales price of the home.

Other changes to the VA Home Loan Guaranty Program includes:

• Expands the eligibility for Specially Adapted Housing Grants.
• Re-instates the Adjustable Rate Mortgage (ARM) Program.
• Expands the eligibility for waiving the VA Funding Fees.

Wartime and Peacetime, as used in the General Rule for Eligibility, refer to the following periods of time:

If you are now on active duty, you are eligible after having served on continuous active status for at least 90 days. When an ending date is established for Persian Gulf War service, a minimum of 181 days of continuous active duty will be required for persons who did not have wartime service.

"Selected Reserve" means the Selected Reserve of the Ready Reserve of any of the Reserve components which consists of units and individuals who participate actively in paid training periods and serve on paid active duty for training each year.

A veteran, who is not otherwise eligible, who completes a total of 6 years as a member of the Selected Reserve (need not be ordered to active duty) is eligible if he or she either:

• received an honorable discharge
• was placed on the retired list
• was transferred to the Standby Reserve or an element of the Ready Reserve other than the Selected Reserve after service in the Selected Reserve characterized as honorable
• continues to serve in the Selected Reserve

VA LOAN LENDING LIMITS: $417,000.00

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