Leaving vets out in the cold

“I don't think the plan drafters understood the situation”

Oops! When Congress and the White House put together the $150 billion economic stimulus package, they raised the maximum mortgage limits in high-cost areas for Fannie Mae, Freddie Mac and the Federal Housing Administration.

But lawmakers neglected a similar increase for veterans' VA-backed loans. While the limits of the other three programs now go as high as $729,500 -- at least through Dec. 31 -- VA loans remain capped at $417,000.

For home buyers such as Greg Rasnake, a lawyer and disabled veteran who works for the federal government, the $417,000 VA limit is a deal-killer. He, his wife and children moved to the Washington area a year ago from Oklahoma. They've been searching since for a house in the close-in Virginia suburbs, but have been unable to use the VA program because of the $417,000 ceiling. Read more