VA Jumbo Loans
So many veterans have worked hard and paid their dues and are now thinking, perhaps its time to upgrade to something bigger and better. With a VA Jumbo loan, dreams can become a reality. Whether you are looking for a bigger home or a home in a more expensive part of the United States the VA jumbo mortgage loan may be the perfect home loan option for you and your family.
What is a VA Jumbo Loan?
So what is a VA jumbo loan? Great question! A jumbo loan is where the loan amount is higher than the conforming loan amount. For example, in most parts of the United States, the 2019 VA loan conforming amount is $484,350. So anything above this amount would be considered a Jumbo loan.
As part of your veteran benefits, the VA says that qualified veterans do not need a down payment for any loan with a sales price below the 484,350. Now that being said there are some counties with a higher VA loan limit. In these counties, the housing costs are higher and they have been adjusted accordingly. Below is a list of the higher VA loan limit counties. If you do not live in one of these higher loan limit counties and the sale price of the home is above the $484,350 your loan is considered a jumbo loan. Unfortunately, in this case, you will be required to pay a down payment.
Jumbo VA Loan Down Payment?
So how does the jumbo VA loan down payment work? let’s say that you wanted to purchase a new home that was $100,000 over the conforming limit. You would need to come up with a down payment of 25% for anything over the conforming limit. So in this example, the home you want to purchase is $584,350 exactly $100,000 over the conforming limit. So you would need to come up with $25,000 as the down payment. This would be 25% of the $100,000 and just shy of 5% of the actual $584,350 loan. So this still a great deal when you consider that VA loans do not require monthly mortgage insurance premiums and most conventional loans require a 20% down payment on the entire sale price. In this case, that amount would be $116,870.
It is important to remember that this is just an example if you would like a more detailed quote on a specific situation call 855-956-4040 to speak with a VA loan specialist.
Loan Limits by State and County
VA jumbo loan limits vary state by state. In most counties in the United States, the VA loan conforming limits are 484,350 for 2019. However in some states like Alaska, California, Colorado, Connecticut, Florida, Georgia, Hawaii, Idaho, Maryland, Massachusetts, New Hampshire, New Jersey, New York, North Carolina, Pennsylvania, Tennessee, Utah, Virginia, Washington, West Virginia, Wyoming, and District Of Columbia the VA conforming loan limits may be higher. The states mentioned may have one or more counties that have higher conforming loan limits. In these states and counties the VA conforming loan limits would be higher. Click here to see what your counties VA loan limits are.
Jumbo Loan Rates
Since the Veterans administration backs the VA loans across the board VA jumbo loan rates are typically lower than conventional jumbo loans. When The banks have the backing of the VA they feel safe and more confident in lending the money generally with a lower rate. In addition the down payments on the VA jumbo are much lower as discussed in the earlier paragraph.
VA Mortgage Lenders
If you are thinking about upgrading your current home and looking for VA jumbo loan lenders call 855-956-4040 to speak with a VA loan specialist.