Many people, particularly veterans, wonder nowadays about a VA JUMBO loan. Let me tell you that this loan type is more than the conforming limit of Fannie Mae loan, which is $453,100. However, like every other loan, this loan type too comes with limits, which are set as per the county. In some counties, such as the Orange County, CA, the maximum value of the VA loan can even go up till $1,094,625.
There are many types of VA loans, among which one is VA jumbo loans. The main attractive point of VA home loans is that they do not necessitate a down payment. Nonetheless, in case a borrower wants to put down some money, they have the option to do so as well. However, the guidelines pertaining to VA jumbo loans are quite complicated and detailed as opposed to the regular Fannie Mae VA loan, which is below $453,100.
VA jumbo loan requirements
When it comes to a VA jumbo loan, there are some requirements that applicants need to follow. These include:
- You must have liquid asset reserves or cash reserves
- You must have an attuned credit vetting procedure
Fees on VA jumbo loans
Just like other VA loans, VA jumbo loans have funding fees of 2.15% (for the first time) of the purchase price or loan amount, which you can finance in the loan itself. For instance, if you require a loan worth $600,000, then the funding fees would equate $12,900. This means that the total loan would be of $612,900. However, you must note that the funding fees on VA loans can differ as per the disability status and the number of times you make use of the VA loan.
Calculating your VA jumbo loan payments
You can make use of a VA jumbo loan in order to purchase a huge property. However, you still have to do some calculation before you go for it so that you can know about your VA jumbo loan down payment and interest rates. Here, you must remember that the VA guarantees a maximum of 25% of the total limit of $453,100.
So, let us explain to you how you can calculate your VA jumbo loan down payment and interest rates with an example. If you want to buy a home worth $500,000, you need to bring in 25% of the amount on top of $453,100. This means you need to get 25% of 46,900 ($500,000 minus $453,100), which is $11,725.
This gives you a down payment of 2.30% from the borrower, which is very much less than a traditional loan. In a conventional jumbo loan, you need to pay a minimum of 10% down payment, in addition to private mortgage insurance, which substantially increases the monthly payment and cash from the veteran.
Get the right VA jumbo loan
There are a lot of VA loan lenders in the market, which is why you need to search for the one that fits you the best according to your needs and preferences. Different VA loan lenders put different prices on their VA jumbo loans. Moreover, interest rates can be somewhat higher than others.
Nevertheless, even if the interest rates on VA home loans are high, they’re very much lesser than a traditional jumbo mortgage, which requires a down payment of 10%. Therefore, it’s advised that you do your homework and get the best VA jumbo loan for yourself from a reputed VA mortgage firm.
If you’re the one who is shopping for high-end houses and want to benefit from a VA home loan, then this undiscovered loan program is actually matchless for veterans with higher income who want to put a lesser amount of down payment on their h