VA FAQ #5 - What is a VA Jumbo Loan?
A VA Jumbo Loan is any VA Loan that exceeds $726,200 for the Loan Amount. Many counties have a VA Loan Limit of $726K, which is the base VA Loan Limit Nationwide. VA Jumbo Loans come into play in a couple of different instances.
VA Jumbo scenario 1. Exceeding VA Loan Limits in Counties with a $726,200 VA Loan Limit. If you are a Veteran with Full VA Entitlement, you have no Loan Limit, just what you can afford. We offer 100% VA loans up to $2m for Veterans with full VA Entitlement available. If you have partial VA Entitlement available (perhaps another VA Loan that will not be paid off prior to purchasing new home, or a prior foreclosure or short sale), we still offer VA Jumbo loans up to $2m with a down payment. The down payment is a factor of the VA county loan limit where you are purchasing, your remaining VA Entitlement, and the purchase price of the home.
If you live in a county with a $726,200 VA Loan Limit, and you have partial VA Entitlement, we you can actually get a higher VA Loan amount than $726K with Vandyk Mortgage. The loan will require some additional down payment or equity to ensure that we are able to reach the mandatory VA Guarantee requirements. Give us a call and we can help you calculate your options.
VA Jumbo scenario 2: High Cost VA Loan Limit Counties with zero down VA Jumbo Loans. The VA has identified certain Higher Cost Counties in areas such as California, Washington State, Virginia, and a few others that allow for higher VA Loan Limits. 2023 VA Loan limits allow zero down VA Jumbo purchase loans up to $1,089,300 in San Francisco, Alameda, San Mateo, Marin and Contra Costa counties. Los Angeles and Orange County Vets can purchase a home with a VA Jumbo Loan up to $1,089,300 with zero down payment required. **update - Qualified Veterans with full VA Entitlement can now purchase up to $2M with no down payment required.
VA Jumbo scenario 3: VA Jumbo Purchase - exceeding the Loan Limit in High Cost counties. VanDyk Mortgage allows you to qualify for a higher VA Loan amount over and above your County VA Loan Limit for Veterans with partial VA Entitlement available. (reminder - Veterans with full VA Entitlement have no VA Loan limit) The loan will require some additional down payment to ensure that we are able to reach the mandatory VA Guarantee requirements. This amount is typically 25% of the following formula: purchase price minus (VA Loan Limit minus VA Entitlement charged). For instance, a Veteran with a $50K charge against Entitlement (Original VA loan $200K) purchasing a $1,000,000 home purchase utilizing a VA Jumbo Loan in Los Angeles would require $27,675 down, (2.76%). Give us a call to help calculate your options for VA Loans and down payment requirements.
VA Jumbo scenario 4: VA Jumbo Refinance - exceeding the Loan Limit. VanDyk Mortgage allows you to qualify for a higher VA Loan amount over and above your County VA Loan Limit. This VA Jumbo Loan will require some equity to ensure that we are able to reach the mandatory Guarantee requirements. This amount is typically 25% of the amount over the VA County Loan Limit for a VA Jumbo refinance. For instance, If your home is worth $1.4M, and you live in Los Angeles or Orange County, CA, you could refinance a $1,260,000 non-VA Loan into a VA Jumbo Loan, as you would have enough equity to cover the VA Guarantee Requirements for a VA Jumbo Refinance in Los Angeles.
As you can see, there are many ways to utilize your VA Home Loan Benefit, you earned it with your service. Please give us a call to see if it's the right solution for you.
VA Jumbo Loans are also known as VA High Balance Loans or VA Super Conforming Loans. It is important to note that VanDyk offers VA Jumbo, VA High Balance and VA Super Conforming Loans up to $2M Loan amounts, we are not limited to the Max VA Loan Amounts that many other VA Lenders have, many limit their VA Loans to $417K, $424,100, $453,100, $484,350, $647,200, $650K, $726,200, $729,750, $1,000,000, or $1,094,625. There are many reasons that they are limited to these figures, but what is important is that we offer and fund VA Loans that exceed each of these thresholds - $417K, $424,100, $453,100, $484,350, $647,200, $650K, $726,200, $729,750, $1,000,000, and $1,094,625.
This is part 5 of our VA Home Loan FAQ series for Frequently asked VA Loan Questions. FAQ = Frequently Asked Questions, and when it comes to VA Loans, we get plenty of questions and we have the answers and solutions you need. We have been making VA Loans since 1987. We are a Direct Lender offering both VA Loans and VA Jumbo Loans for the Purchase or Refinance of your Primary Home. Please give us a call to get help with your VA Loan or VA Jumbo Loan questions, and see if you qualify for a VA Home Mortgage - 866-900-2342 toll free direct, or contact us online at VanDykFunding.com .
Comments(0)