I was perusing through the legislation President Bush signed onto law on July 30th that allow folks struggling with their mortgages to refinance though the FHA (Federal Housing Administration). What caught my attention was the portion that applies to the military.
This should be a benefit to military families that are having mortgage problems. Essentially the new law offers nine months of protection (formerly 90 days) from mortgage foreclosures for returning service members, after they separate from active duty. And a new loan cap has been established. The maximum loan cap for VA home loans has been temporarily extended to the end of the year. The cap can be as high as $720,750 and as low as $417,000 - depending on the median housing prices for the area.
In order to qualify for this assistance you must have taken out your loan on your primary residence on or before Jan.1, 2008. And, as of March 1, 2008, the amount you pay for your monthly housing payment must be 31 percent of your monthly income.
If you are in the military and need more information go to http://www.military.com/Finance there are a lot of helpful links here. Good luck, God speed and thank you for your service.