TheWeekInCongress.com

Week Ending June 25 2004

HR 4345 Increase VA loan amounts.

BRIEF

   This bill would increase the maximum home purchase guaranty through the Veterans Administration from $240,000 to $333,700 and would provide for annual increases in the home loan guaranty to match rising housing prices.

   The increases would come from linking the VA loan limit with the conforming loan rate of the Federal Home Loan Mortgage Corporation.

   The VA guaranteed 419,717 home loans for veterans and 57,129 home loans for active duty service members in fiscal year 2003. Since the program's inception in 1944, the VA has guaranteed more than 17.5 million home loans.

Sponsor: Representative Ginny Brown-Waite (R-FL)

Vote: Passed House by voice vote.

Cost to the taxpayers: CBO estimates the bill would save taxpayers $39 million in 2005, $208 million over 5 years and $288 million over 10 years.