If you are considering a VA jumbo loan, chances are you have questions about funding fees. One of the most attractive loan programs on the market today, the VA jumbo loan comes with plenty of perks. it’s no wonder so many active and retired military personnel are eager to take advantage of this program. However, before you decide to shop for homes within the ‘jumbo’ price range, it’s important to first do your homework.
What Classifies as a VA Jumbo Loan?
As the name suggests, a VA jumbo loan is a mortgage backed by the US Department of Veterans Affairs for loans that exceed a predetermined threshold. In most areas of the country, a VA loan in excess of $417,000 is considered a jumbo loan. There are however exceptions for higher cost counties. VA loans that are not classified as jumbo loans do not require a down payment. Jumbo loans require a down payment on the loan amount in excess of $417,000, or higher depending on the county.
What are VA Jumbo Loan Funding Fees?
VA jumbo loan funding fees are applied to mortgages and refinanced loans granted under the VA loan program. These one-time fees can be paid in full, or partially, upfront or wrapped into the loan. The fee is based upon a percentage of the loan amount. Proceeds of these fees are given to the Department of Veterans Affairs to help cover the cost of the rare VA loan default. VA Jumbo loan funding fees vary depending on a number of factors including: past VA loans, down payment, veteran’s service, loan type and loan amount. You can expect to pay between 0.5% to 3.3% of the total loan amount. Because these fees are subject to change, we encourage you to contact us for an up-to-date schedule of VA jumbo loan funding fees.
In some cases, borrowers with service-connected disabilities, can apply for an exemption from the VA funding fee. This determination is ultimately made by the VA, ask your VA jumbo loan officer for more details.
Apply for a VA Jumbo Loan Today
If you are ready to secure your piece of the American Dream, through the VA loan program, we encourage you to begin the process today! As experts in conventional VA loans and VA jumbo loans, we are here to help you through every step of the loan process. From application to closing, we have the knowledge and expertise to help you navigate the process. Apply today and allow us to help make your dream a reality!