Can I Get A VA Jumbo Loan

Can I Get A VA Jumbo Loan

 

VA Jumbo LoanA VA jumbo Loan is a loan guaranteed by the VA but is a loan amount that is greater than the Fannie Mae or Freddie Mac conforming loan limits. The conforming loan limit standard nationwide for a VA jumbo loan is $417,000 but can be considerably higher in many high cost counties.

 

Typically Two Types Of  VA Jumbo Loans:

Most VA Jumbo Loans will fall inside of the first type and that is it is greater than the standard conforming limit of $417,000. This type of loan will require a down payment. The second type of VA jumbo loan is below the high cost conforming limit for the particular county you will be purchasing your new home and doesn’t require a down payment.

How To Calculate My Down Payment For A VA Jumbo Loan:

VA Jumbo LoanFirst lets explain the VA guarantee or your entitlement. The VA doesn’t actually loan you money on a VA Jumbo Loan, your loan will come from a conventional lender just like anyone else and will follow the Fannie Mae and Freddie Mac guidelines. VA guarantees a 25 percent portion of that loan.

If we take a look at the standard conforming limit of $417,000 as an example VA is guaranteeing twenty five percent of the loan amount or $104,250 which is your entitlement. If you were purchasing a home of say $550,000 that is a difference of $133,000 above the conforming limit. Your down payment would be twenty five percent of that difference or $33,250.

On the other hand if you were purchasing the same value of home in Orange county California where there is a conforming loan limit of $625,500 then VA would guarantee the loan without a down payment as long as you meet the VA loan qualification standards.

What Are The Requirements For A VA Jumbo Loan:

The VA jumbo Loan my vary from lender to lender but a large majority will have a higher standard for the minimum credit score than the usual VA loan due to such high loan amounts. For loans under $650,000, borrowers may be required to have a minimum FICO score of 720. If you are borrowing over $650,000, the minimum credit requirement could be increased to 740.

If your presently thinking of applying for a VA jumbo Loan the best thing to do is contact a loan officer who specializes in VA loans. Most people when purchasing a home will usually head down to their local bank where they do their checking and savings. Even though they have a sign up in the lobby that says mortgages it’s the equivalent of going to a family practitioner with a lump in your throat when you should be going to a throat specialist.

What Documents Should I Have When Applying For A VA Jumbo Loan:

The documentation you will need to have available once you’ve got your pre-approval and have signed a purchase agreement will be the basic documents just like any other mortgage. Additional documents may be required for your particular situation and your VA loan specialist will ask for these once you have applied and determined what will be necessary.

  • Two Months Current Bank Statements
  • Current Statements From Investments Or Retirement Funds Or Face Values Of Life Insurance Policies
  • Last Two Years Tax Returns
  • Last 30 Days pay Stubs
  • If Self Employed An Up To date P&L Statement
  • Any Award Letters If Any From VA or Social Security For Benefits
  • Divorce Documents Could Be Necessary
  • If Your Presently Renting From A Private Landlord You Will need To Have 12 Months Cancelled Rent Checks

How Can I Get A VA Jumbo Loan?

I hope you have found the information in this article helpful in your search for financing your future dream home. My name is Chris Hatley and I specialize in VA loans and I too am a veteran. With that being said I want to thank you for your service and offer to help you with applying for a VA Jumbo Loan.

You can leave your contact information by visiting my home page and downloading my Quick Guide of VA Home Loan Requirements or you can email me at vamilitaryhomeloans@gmail.com, I also can be reached at my office number at (931) 651-1378.

Some of the great benefits I want to leave you with concerning a VA Jumbo Loan is:

  • VA loans allow up to a 90% refinance limit and some specialty lenders may go even higher – Most conventional loan limits are restricted to 80%.
  • VA lenders offer great rates.
  • No PMI which means a much lower monthly payment than other programs.
  • No prepayment penalties should you pay off your home early.
  • VA assistance to veteran borrowers in default due to temporary financial difficulty.
  • Ability to roll the VA funding fee into the loan amount and if your a disabled veteran this fee is completely waived.

OK, good look with the purchase of your new home and if I can be of assistance please feel free to contact me.

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