Veteran Affairs (VA) Jumbo Loans
Low Down Payment Veteran Affairs (VA) Jumbo Loans
We specialize in Veteran Affairs (VA) jumbo and non-conforming loans to help you purchase a new home or refinance an existing home loan. We have competitive jumbo rate programs for veterans and their families. We also offer a wide range of Jumbo loans for self-employed borrowers, physicians, and borrowers with multiple income sources.
If you need to borrow more than $484,350 (except for in some high priced counties) then you will need a “jumbo loan” as opposed to a normal conventional loan. If you are a veteran, you can use your Veteran Affairs (VA) benefits to purchase or refinance a home above this figure.
Benefits of using a Veteran Affairs (VA) Loan:
- Ability to Finance up to $1.5 Million for a Purchase or Refinance
- Low VA Rates
- Lower Down Payments than Tradition Jumbo Loans
- No Mortgage Insurance
In addition to very low rates, the other main benefit of a Veteran Affairs (VA) Jumbo loan is that you can, in many cases, put down less money. As you might know if you have shopped for a non-conforming jumbo mortgage, most lenders require 20% or more for a down payment. By using a Veteran Affairs (VA) Jumbo loan you can put down much less than a traditional Jumbo loan (and in some cases, your down payment may be zero). The amount of down payment you need to make for a Veteran Affairs (VA) jumbo loan depends on the county loan limit and how much VA loan entitlement you have.
How to Calculate a Veteran Affairs (VA) Loan Down Payment
Below are a few examples showing down payment calculations that were provided by the Department of Veteran Affairs (VA). Due to variations in the amount of entitlement available to an individual veteran, loan limits for individual counties, and purchase prices for homes, situations may arise which are not covered here.
VA Loan Down Payment Example 1: Veteran has full entitlement available and is purchasing a home for $480,000 where the county loan limit is $417,000. $417,000 X 25% = $104,250 Maximum Guaranty and Entitlement Available $104,250 / $480,000 = 21.72% Guaranty Since VA’s Guaranty will be less than 25%, a down payment will likely be required to meet investor requirements. $480,000 X 25% = $120,000 $120,000 – $104,250 = $15,750 Down Payment
VA Loan Down Payment Example 2: Veteran has full entitlement available and is purchasing a home for $800,000 where the county loan limit is $729,750. $729,750 X 25% = $182,437.50 Maximum Guaranty and Entitlement Available $182,437.50 / $800,000 = 22.81% Guaranty $800,000 X 25% = $200,000 Guaranty and Down Payment Combination Required $200,000 – $182,437.50 = $17,562.50 Down Payment
We understand that these calculations are a bit confusing so we encourage you to reach out to us and one of our VA Jumbo loan experts can determine the amount of down payment and VA Jumbo rate that is available to you. If you currently own a home and would like to take cash out of your property in order to buy a secondary or investment property, we offer Jumbo Cash Out VA loans. If you are ready to build your American dream home and would like to finance the construction process, we offer VA Construction loans with attractive rates and unique benefits. We will take the mystery of out the process and do our best to help you save money on a VA Jumbo loan.