Yes, VA Allows Jumbo Loans
If you are a military veteran in the market for a new home or looking to refinance a current mortgage, you may be wondering if you can get a jumbo loan through the VA. The answer is yes.
What is a Jumbo Loan?
A jumbo loan, also known as a non-conforming loan, is a mortgage that exceeds the conforming loan limits set by the Federal Housing Finance Agency (FHFA). In most counties in the United States, the conforming loan limit is $510,400. However, in areas with high home values, such as San Francisco or New York City, the conforming loan limit can be as high as $765,600.
What is a VA loan?
VA loans are home loans guaranteed by the Department of Veterans Affairs. These loans are provided by private lenders such as banks and mortgage companies. VA loans are available to active-duty service members, veterans, and surviving spouses.
VA Jumbo Loan Limits
While there is no official limit on the amount of a VA jumbo loan, the VA sets limits on the amount it will guarantee. The VA will guarantee a maximum of 25% of the loan amount up to the conforming loan limit in the county where the property is located.
However, the VA will guarantee up to 50% of the loan amount on properties with a purchase price of $1 million or more. For example, if you are buying a $1.5 million home with a VA jumbo loan, the VA will guarantee up to $750,000 of the loan amount.
Benefits of VA Jumbo Loans
There are many benefits to getting a VA jumbo loan, including:
Are There Any Disadvantages to VA Jumbo Loans?
Like any type of mortgage, there are some disadvantages to getting a VA jumbo loan:
How to Qualify for a VA Jumbo Loan
To qualify for a VA jumbo loan, you must meet the VA's eligibility requirements. This includes serving a certain length of service depending on the era in which you served. Additionally, you must have a credit score of at least 620 and a debt-to-income ratio of no more than 41%.
Working with a Mortgage Professional
If you are considering a VA jumbo loan, it is important to work with a mortgage professional who has experience helping veterans navigate the VA loan process. FHA loans Pro has helped many veterans secure VA jumbo loans and can guide you through the process from start to finish.
Conclusion
In summary, if you are a veteran or active-duty service member looking to buy a home that exceeds the conforming loan limit, you can still get a VA jumbo loan. VA jumbo loans have many benefits, including no down payment required and competitive interest rates. Working with a mortgage professional who specializes in VA loans, such as FHA loans Pro , can help make the process easier and ensure that you get the best deal on your loan.