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Show V R Explains Changes In G I Loans In response to many inquiries, the Veterans Administration has explained the three principal changes affecting GI loans for veterans, as follows: 1. The maximum allowable interest in-terest rate has been raised to 4'a percent from 4 percent. 2. Credit restrictions of GI home louns have been removed makim? ii permissable for veterans veter-ans to obtain such loans with no down payment and with a repayment re-payment term up to 30 years, at the discretion of the lenders. 3. Veterans who now plan to seek GI loans from private lenders lend-ers for homes, farms or businesses busi-nesses should apply to VA regional re-gional offices in advance for certificates cer-tificates of eligibility. VA emphasizes that the new 4li percent interest rate will apply ap-ply to loans closed on or after May 5, 1953. All loans closed prior to May 5, 1953 will be continued con-tinued at the 4 percent under which they were negotiated. VA explained that even though the law now requires no down payment on GI loans, veterans seeking loans are apt to find that many lenders will require down payments. The amount of down payment dnd the length of the repayment ;eriod are matters to be agreed upon between the veteran and ;he lending institution making the loan. Applying In advance for certificates cer-tificates of eligibility for GI loans, will reduce delays in processing pro-cessing the loan applications. These certificates of eligibility are the means by which VA certifies cer-tifies as to the eligibility of veterans vet-erans for GI loans. In the past, veterans generally have submitted their discharge or separation papers to the lending lend-ing institutions making the loan. They in turn would submit them to the VA on behalf of the veteran, vet-eran, oftentimes with the loan applications. Now, to pass on a veteran's eligibility, VA must know whether wheth-er the veteran served in World War II or since the start of the Korean conflict, or both; what prior use he has made of his loan guaranty oenefits, if any; the status of any prior GI loans, and whether the veteran still owns real property purchased with anv prior loans. VA said most World War II veterans have until July 25, 1957 in which to apply for GI loans under the original GI Bill, but veterans with service since June 27, 1950, the 'beginning of the Korean conflict, have until 10 years from the end of the current cur-rent emergency in which to apply. |