VA Jumbo Mortgage Home Loans
Is it time for a jumbo mortgage loan? Let’s say you’ve been eyeing that perfect three-story house on the edge of town for a while now, but the regular conforming loans just aren’t going to cut it for financing your dream house. Don’t give up just yet. For this and other high-priced and luxury homes, the VA jumbo loan will give you the room you need to purchase your dream home. The VA jumbo mortgage is a nice benefit for veterans and military servicemembers that are needing a larger loan amount to purchase a new home. Many veterans are unaware that there is a VA jumbo mortgage option. VA jumbo loans are another great benefit offered to qualified veterans and military personnel. In most areas of the country, the limit for conforming loans is $484,350 while in higher-priced parts of the country, such as in Hawaii and Alaska, the limit is much higher ($726,525). Because of this, some homes may not be affordable under a conforming loan. Jumbo loans exceed these limits, allowing you to easily finance the high-priced and luxury homes. If your home price falls in this area and you need a larger loan, you should consider getting a jumbo loan. Interest rates are usually higher with these than with conforming loans, but because GSE fees have recently been increasing, interest rates have actually been significantly lower. Depending on different factors, jumbo loans may or may not be beneficial for you and the requirements for qualification are stringent. That’s why it’s important to know all the bits and pieces that make a jumbo loan what it is.
Jumbo Mortgage Interest Rates?
Conforming rates for jumbo loans have typically been higher due to the high risk they pose for lenders. Because of this and the recent fluctuation, you should make sure you are getting the best rates possible for your jumbo loan. Also be aware that stricter underwriting for jumbo loans means the down payment will be much higher than conforming loans depending on the lender. You will likely be paying at least 20 percent. This makes sense since houses qualifying for jumbo loans are much more expensive, but don’t be overwhelmed by an extravagant down payment. As you might already be aware, you will actually have lower APR by paying more at the start. In addition to the high down payments, jumbo loans also have high closing costs which can make it more expensive to refinance. Since jumbo loans are not backed by the government, lenders may also require a second appraisal, which will tack on additional fees. Taking these rates and fees into consideration, jumbo loans still give you a wider range of housing options than are available otherwise.
Do You Qualify for a Jumbo Mortgage?
If you are hoping to purchase a high-priced home and think a jumbo loan will be beneficial, the next step is qualification. To know if you qualify, you need to look at specific lender requirements, which will vary slightly from lender to lender. Many lenders have the following criteria: credit score of 720 or higher debt-to-income ratio of 43 percent or less and ability to pay housing costs. These requirements have become stricter recently than they ever were in the past because of fluctuations in the housing market. And consider that some lenders will have more specific requirements about the type of property being purchased, such as primary home vs. secondary home and condominium vs. house.
Can you get a VA jumbo loan?
Yes. The main difference between a regular jumbo loan and a VA jumbo loan is that, for closing costs, the VA requires no more than 25 percent of the sale price above $484,350 (the conforming limit in most counties), while regular jumbo loans require at least 20 percent. Beyond this, you get all the other added benefits from a VA loan: no money down on the first $484,350, easier qualifications, and more flexibility. Low VA Rates, LLC is proud to offer VA Jumbo Mortgage loans and we are here to help with any questions that you might have regarding Jumbo loan limits and guidelines. Call us today to speak with a Low VA Rates VA Jumbo mortgage expert at 855-223-0705.