Aug

30

Ginnie Mae Eliminates Cap on VA loans

August 30, 2007 |

I just read some really great news the feds have eliminated the cap on VA Jumbo loans. The Daily Real Estate News reported on August 30, 2007; Beginning Sept. 1, the Government National Mortgage Association, known as Ginnie Mae, will eliminate its $417,000 cap on the VA loans it will guarantee. Michael J. Frenz, Executive Vice President of Ginnie Mae is quoted “We expect this change will expand the availability of low-cost financing and increase homeownership opportunities for America’s veterans, particularly in high cost areas, by encouraging lenders to make more VA loans,”. Ginnie Mae continues to require that the down payment, plus the amount of the VA guaranty, equal at least 25 percent of the value of the home. Source: The Associated Press (08/29/2007)


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