Many veterans have already taken advantage of the VA loan. With easier qualifications and more flexibility, it has been the right choice for many to purchase and refinance their homes through this program. However, in most counties, the conforming loan limit with no money down is $417,000. What happens when your home costs more than this? Don’t fret, there is a solution! The VA Jumbo loan.
A VA jumbo loan simply put, is any VA loan greater than $417,000. Qualifying veterans can apply to purchase or refinance their home for up to a value of $1,000,000 through this type of loan. The VA Jumbo mortgage just asks the veteran to make a down payment of 25% on any amount over the limit of $417,000. Basically, the home is purchased for this down payment and the closing costs, which can be rolled into the loan and do not have to be paid out of pocket. Plus you get all the benefits of a VA loan!
For example, imagine you are a veteran and the home you intend to purchase is $650,000. In order to find out the down payment that you would need, simply start by subtracting the conforming loan limit ($417,000) from the purchase price, which equals $233,000. Multiply this amount by 25%, which equals $58,250. This would be your down payment. This works out to about a 9% down payment. That’s less than the standard down payment on most homes. The VA program is hard to compare to a conventional loan when you look at it from this point of view.
VA Jumbo loans are only available to those that qualify for VA loans and their eligibility requirements. It will allow you to choose a home that suits you and your family the best. Jumbo loans have all of the benefits of a VA loan, plus it allows you to obtain a larger loan amount if that is what you need. Definitely make sure you check out this amazing offer! We have a team just waiting to hear from YOU! Call us now at 866-569-8272. We can not wait to help you get the loan that you want to suit your needs.