Rep. Susan Davis, D-San Diego, introduced a bill on Tuesday that would allow veterans in California and four other states to avoid foreclosure by refinancing their adjustable and interest-only mortgages.
Veterans who use state low-interest loan programs in California, Alaska, Oregon, Wisconsin and Texas can only purchase their primary home, but not refinance, according to Davis.
The Veterans Home Loan Refinance Opportunity Act would allow refinancing in those programs and let former military members switch to fixed-rate loans.
"Given the large number of foreclosures that have swept the nation, it makes sense to allow veterans the same opportunity to refinance into low-interest, affordable loans that so many average Americans have been able to do," said Davis.
A provision of the bill allows loan limits to rise to reflect increasing housing prices.
"Our veterans have fought and sacrificed to help keep the American dream flourishing," Davis said. "It is only right that they should be allowed to take part in that dream."
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