SS Memo 06-05

SELLING GUIDE REVISIONS: CONTACT UNDERWRITING

Date: May 25, 2006

Veterans Mortgage Program

(Section 5003)

AHFC is pleased to announce the following changes to the Veterans Mortgage Program made possible with the passage of the tax reconciliation act, which was signed into law by President Bush on Wednesday, May 17, 2006. The requirement that eligible veterans entered active duty service prior to January 1, 1977 has been eliminated. Additionally, eligible veterans may not have been discharged from active duty service more than twenty-five (25) years (previously 30 years) prior to the date of application to AHFC. The Act also includes a sunset date of December 31, 2010 for the Program.

All other program guidelines remain unchanged. Veterans must have been retired, discharged, or released from duty under conditions other than dishonorable. Active duty military borrowers must have completed his or her initial period of duty under conditions other than dishonorable. The changes are effective for loans submitted for commitment on or after Tuesday, May 30, 2006.