VA Jumbo Loans
VA loans and VA Jumbo loans are loan products available only to those veterans who served our country and earned an honorable discharge from any of the United States military branches. The difference between a VA loan and a VA Jumbo loan is in the loan limits.
A VA Jumbo loan is for borrowers wishing to borrower above the standard loan limit of $417,000.
You may find general information that tells you that the VA guarantees up to 25% of a loan limit of $417,000 or more. However, this information is an extreme generalization. There are other factors to consider. For example, the county in which you’re purchasing has its own loan limits, which may exceed $417,000. Also, at Banner Mortgage we have investors who allow Veterans to bring in only 20% of the difference in the loan amount (see example below to help clarify).
Sale Price: $500,000
Difference of: $75,750
X 20%: $15,150
$15,150 is all the Veteran borrower would be responsible for bringing to closing.
This is significantly cheaper than a conventional loan where the borrower would also be responsible for 10% down and also require private mortgage insurance to be factored into the loan, which increases the monthly payment and also would require more cash to be brought to closing from the Veteran.
If you are a Veteran earning a higher income the VA Jumbo loan program is a great way to cash in on the benefits of serving our country. For more information and loan limits for the county in which you’re looking to purchase, please contact us!