A common myth with VA Loans is that they don't work for your area, the loan amounts are too low for your area, or that Sellers aren't accepting VA Offers. In the past this was true, but with VanDyk Mortgage, this is no longer true. Please see our VA Loan Limits page for details on your county limits.
VA Loan Amounts above $417,000 are called VA Jumbo Loans or VA High Balance Loans. While many counties in the country are limited to the $417,000 amount, that isn't the highest VA loan available for that county.
VanDyk Mortgage offers VA loans up to $1,500,000 in all the states we serve to qualified Veterans. What changes is the amount of required home equity or down payment. Each case is unique.
In counties where the loan limit is lower than your purchase price or refinance loan amount, you may have to have equity (for a VA Jumbo refinance) or put a down payment (for a VA Jumbo Purchase).
So what is the benefit of using a VA loan in this scenario? - Lower down payments than conventional alternatives, fixed rates, no Mortgage Insurance, lower equity requirements for Refinances. Let's say you live in a county where the VA loan limit is $417,000 (such as Riverside, Fresno, or San Bernardino counties in California). You want to purchase a home that is $450,000 with a little of down payment possible. Assume that you have full VA eligibility & fully restored Entitlement. VanDyk Mortgage will allow a VA loan in this scenario up to $441,750, requiring just $8,250 down payment, or 1.83%. This calculation does not include the VA Funding Fee, your down payment could be as much as .825% more if the max VA Funding Fee applies to your scenario.
The goal of the VA calculation is the reach a guarantee figure of 25% of the loan amount. This can be a combination of the Entitlement and a down payment.
Here is the math to figure this out:
1. Take your county loan limit (in this case $417,000) and multiply times 25% to reach your maximum entitlement and guaranty available ($417,000 x .25 = $104,250)
2. Take your purchase price and multiply times the minimum guaranty required. ($450,000 X .25 = $112,500) ** since this figure is higher than your maximum guaranty and entitlement from #1, we must now figure out how to handle the shortage.
3. Take #2, the Minimum required guaranty ($112,500) and subtract the available guaranty and entitlement for you ($104,250) and it yields us $8,250.
$8,250 represents the required down payment for purchasing a $450,000 property in a county with a VA loan limit of $417,000 for a Veteran or Active Duty Service Member with full Entitlement available. $8,250 is a 1.83% down payment. Now that is a huge benefit for our Veterans.
This is far superior to the conventional loan alternatives or even FHA loans. So if your bank tells you that you need to put more money down for a conventional loan, Call VanDyk Mortgage and go with a VA loan instead. You will be glad you called.
Many VA Lenders cap their VA Loans at $417K, $650K, 729K, or $1m. We offer (and close) VA Jumbo Loans over $417,000, VA Jumbo Loans over $729,750, and VA Jumbo Loans over $1m (yes, VA High Balance Loans over $1,000,000).
VanDyk Mortgage is a VA Direct Lender (since 1987) offering VA Loans such as VA purchase loans, VA Streamline Refinance, VA IRRRL, VA Refinance Loans, VA Jumbo purchase loans, VA Jumbo Refinance Loans, VA Jumbo Streamline Refinance loans, VA Jumbo IRRRL , VA Mortgages of all types. As a Government Direct Lender, VanDyk Mortgage is also a HUD Full Eagle FHA Direct Endorsement Underwriter, ie FHA Direct Lender offering FHA Loans such as FHA Purchase loans, FHA Refinance, FHA Streamline Refinance, FHA 203K Streamline Rehab loans, FHA Jumbo, FHA Jumbo Purchase, FHA Jumbo Refinance, FHA Jumbo Streamline Refinance, FHA mortgages of all types. We offer FHA & VA loans in California, Washington, & More. Visit us at www.vandykfunding.com to get started or just find out more.