How the VA Protects Veterans From Predatory Lending
Posted in Uncategorized on September 4, 2018
A new policy implementing the May 2018 "Economic Growth, Regulatory Relief and Consumer Protection Act" protects veterans from predatory lending practices when applying for a VA-guaranteed refinance loan. Learn more.
How the VA Protects Veterans From Issues Surrounding Refinancing Home Loans
The VA Home Loan Program is designed to help active duty service members and veterans obtain, retain and adapt homes. It also helps severely disabled veterans make their homes more accessible by providing up to $81,080 for home modifications.
VA-backed home loans consistently outperform other types of loans, generally not requiring a down payment, having low closing costs and low rates.
Over the past three years, the VA has guaranteed more than 2 million home loans totaling over $500 billion.
The new policy helps and protects veterans from the dangers associated with refinancing home loans which can often require a recoupment period for closing costs and fees. The act will provide a specific interest rate decrease and protection of loan-to-value ratios. Refinancing loans must meet the requirements laid out in the act or the VA will deny the loan.
Acting VA Secretary Peter O’ Rourke says, “We want to ensure [that] veterans have the informed ability to take advantage of economic opportunities and make sound decisions that enable them to prosper when using their benefits. This is yet another tool that will help veterans meet their personal goal.”