Veterans have an edge in the purchase market across the country. While 100% financing has gone the way of the DoDo bird, qualified vets can still get 100% financing up to the conforming conventional limit of $417,000. In some counties, that number can go as high as $729,750. with zero down.
That's where most realtors stop when talking to veterans. Jumbo money is available to vets, though, and realtors in higher priced markets will want to re-think their focus.
Jumbo loans for Veterans? Here's how it works:
Click on your state below (courtesy of VALoans.com) to find the maximum zero down amount for the county you're interested in.
For Pima County in Arizona, for instance, that number is $417,000.
In Dukes County, Massachussets, the maximum zero down amount is $736,250.
The maximum VA guarantee amount in both cases, however, is $1,000,000. Note that the veteran must qualify as follows for loans above the zero down amount for his/her particular county.
- For a purchase price exceeding the zero down amount, the borrower must come to closing with funds equal to 25% of the amount by which the purchase price exceeds the zero down amount.
Example: In Pima County, AZ, with a contract price of $690,000. the borrower would have to come to the table with $68,250 towards the purchase price. (690,000 minus 417,000 x 25%.) - The VA funding fee cannot be financed above the maximum zero down amount, so in the example above, the veteran would have to pay that fee out of pocket. (The VA funding fee for first time users is currently 2.15% of the loan amount, and 3.3% for subsequent uses of the VA eligibility.)
- The minimum borrower FICO score for all loans above $417,000. is currently 680, and a second appraisal will be required as of January 1, 2009.
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