On January 1, 2014 the VA conforming loan amount maximums decreased from $750K to $625,500.
What does this mean for YOU as an Oahu, Hawaii military servicemember, veteran or retiree?
VA eligible home buyers on Oahu can still get loans of up to $625,500 for zero down. In addition, VA-eligible servicemembers and veterans can still get loan amounts up to $1,000,000, however, a downpayment equal to 25% of the amount above the conforming loan limit will be required for these Jumbo VA Loans.
How does this work?
Example: On Oahu, a VA Loan (Jumbo) may be used to purchase a property costing $825,500. In this case the conforming loan limit is $625,500 and the difference is $200K. A servicemember will be required to put $50,000 down on the purchase. With a conventional loan, requiring 20%, you would be required to put down $93,625. Using a VA Loan is still has a significant benefit, as to downpayment, over a conventional loan.
Example: A servicemember may wish to purchase a home costing $1,100,000. In this scenario, the servicemember can get a VA Jumbo Loan will have to have a downpayment of 25% of $374,500 (the difference between $1M and $625,500), or $93,625 .... PLUS $100,000 because the purchase price tops the maximum jumbo loan amount of $1M for Oahu VA Loans. This totals $193,625 out of pocket. With a conventional loan of this size, a borrower would have to have at least $220,000 down.
If you have more detailed questions about purchasing a home on Oahu with a VA Loan, please call Yvonne Jaramillo Ahearn at Home Shoppe Hawaii 808-721-8088. We can also help you find a good VA Loan Officer. Just give us a call!