VA Benefit Improvements

On August 5, 1997, the President signed Public Law 105-33, “The Balanced Budget Act of 1997”.  This bill extended the funding fee surcharge of 0.75 percent, the 3 percent fee for second time use, and the no-bid formula through October 1, 2002.  It increased from 1 percent to 2.25 percent the fee paid by purchasers of VA acquired properties who obtain vendee loans.  It extends through December 31, 2002, VA’s authority to guarantee REMIC securities.  It also permits VA to collect debts established against veterans as a result of default on a VA home loan by offsetting, for example, federal salary payments or tax refunds.  VA must provide the veteran with notice of the right to request a waiver and to appeal denial of a waiver or release of liability.  Previously, these offsets could only be taken with the veteran’s written consent, or if there was a judicial determination of the debt.

On November 21, 1997, President Clinton signed Public Law 105-114, which extended the Native American Veteran Housing Loan Pilot Program until December 31, 2001. 

On November 21, 1998, extended the home loan eligibility of individuals who are not otherwise eligible and who have completed a total of at least 6 years of honorable service in the Selected Reserves to September 30, 2003.

The Veterans Millennium Health Care and Benefits Act of 1999, Public Law 106-117 authorized VA to restore the home loan eligibility of surviving spouses who lost such eligibility as a result of remarriage if the remarriage has been terminated by death or divorce.  The home loan eligibility of individuals who are not otherwise eligible and who have completed a total of at least 6 years of honorable service in the Selected Reserves was extended to September 30, 2007.  VA’s authority to sell or lease acquired properties to organizations to provide housing for homeless veterans was extended to December 31, 2003.

Currently, eligible veterans and service personnel may obtain loans for the following purposes:

o        To buy or build a home.

o        To buy a residential unit in a condominium project.

o        To repair, alter or improve a home.

o        To refinance an existing home loan.

o        To buy a new or used manufactured home and/or lot.

o        To buy and improve a manufactured home lot on which to place

          a unit owned and occupied by the veteran.

o        To improve a home through installation of a solar heating

          and/or cooling system or other energy efficient improvements.

o        To refinance a loan currently guaranteed, insured or made by

          the VA for the purpose of lowering the interest rate.

o        To refinance a manufactured home in order to purchase the

          lot on which the home is or will be placed.