Do VA Jumbo Loans Require PMI?At Banner Mortgage we specialize in VA loans and VA jumbo loans. For more than 20 years we have been helping families secure funding for their piece of the American Dream. We consider it an honor and a privilege to help military families take advantage of the lending benefits available to them through the Department of Veterans Affairs

Private Mortgage Insurance (PMI)
PMI is a form of mortgage insurance intended to protect the lending institution should the borrower default on the loan. Most conventional loans require the homeowner to carry PMI unless they have made a down payment of 20% or more of the property’s value.  The homeowner must then carry PMI until they have accrued at least 20% equity in the property. PMI typically costs between 0.5% and 1% of the home’s total value annually. In other words, the cost of PMI can add up and add up quickly.

VA Jumbo Loans  
One of the most attractive benefits of the VA home loan program is that it doesn’t require PMI. That’s right, unlike traditional mortgage products, those who are eligible for VA backed loans get to skip the substantial expense of PMI. Whether you are considering a VA loan or a VA jumbo loan, you will save hundreds if not thousands of dollars a year in private mortgage insurance premiums. Yet another attractive benefit of VA backed loans is they don’t require a down payment. With VA loans you enjoy the financial freedom of skipping PMI premiums as well as avoiding the stress of making a down payment.

Are You Eligible for a VA Jumbo Loan?
If the savings associated with VA loans excites you, now is the time to determine if you are eligible. Do you meet any one of the following requirements?

  • 181 days of active duty service during peacetime
  • 90 days of active duty service during wartime
  • 6 years of service in the Reserves or National Guard
  • The spouse of a service member who was killed in the line of duty

For more details on VA loan and VA jumbo loan eligibility, see our complete post on the topic.

Apply for a Loan Today
If you are ready to apply for a VA loan or a VA jumbo loan, we encourage you to begin the process today. Allow us to put our extensive lending experience to work for you!