VA Home Loans are one of the many benefits received by eligible servicemembers, Veterans and their surviving spouses. The home purchase loans often do not require a down payment, private mortgage insurance and are usually offered at very competitive interest rates.
There are two different types of VA purchase home loans: 1. Va Loan; 2. VA Jumbo Loan. The difference between a VA Loan and a VA Jumbo loan has to do with the loan limits for each loan.
Loan Limits on a VA Jumbo Loan or VA Loan
It is important to understand the Veteran’s Administration does not impose a maximum amount that an eligible veteran may borrow. What is limited is the amount that the VA will guaranty to your lender. Currently, the 2016 VA Loan guaranty amount is $417,000. However, there are exceptions.
The VA has increased the VA guaranty amount should the eligible veteran be buying a home in what is called a “high-cost county.” In Colorado, these counties and increased VA loan guaranty amounts are as follows:
|STATE||COUNTY||2016 VA COUNTY LOAN LIMITS|
High-Cost County VA Loans and VA Jumbo Loans – What’s the difference?
VA Jumbo loans still exist. There has been a bit of confusion since the high-cost county loan limits have increased and go above and beyond $417,000, which previously would have been considered a VA Jumbo Loan.
Now, a VA Jumbo Loan is considered anything over $417,000 in areas that are not considered high-cost counties, and in high-cost counties a VA Jumbo Loan would be considered anything over the specific High-Cost County loan limit for the county.
Still interested in a VA Jumbo loan?
Please visit our page on VA Jumbo loans. We break down what the cost looks like for a VA Jumbo loan, and discuss other pertinent information. Or,fill out the form below and we will be in touch with you immediately.