VA Jumbo: The Mother of All Loans
The headline news about dropping some really big ordnance got me thinking about something else that can go really big in a veteran's favor --- VA jumbo mortgages.
Veteran's Administration (VA) loans are common and the VA jumbo loan product could go a long way towards helping those buyer s who have served our country find the best home loan for their ideal home in any locale. So perhaps a "True or False" boot camp of sorts is in order and below are several common points of confusion, concern and curiosity about VA jumbo loans.
VA loans are all zero down. This is FALSE. While in some cases a veteran can obtain 100% financing, they do not need to. And in cases where the loan amount would exceed the county loan limit, there is a formula we use to determine the minimum required down payment.
VA loan limits are the same as FHA. This is TRUE, but a bit of a trick question. The loan limits for one- to four-unit homes in any metropolitan statistical area (MSA) do mirror the conventional and FHA limits, however, a veteran can exceed these amounts if making a down payment (where he or she might otherwise have looked to obtain 100% financing).
VA loans require a pest inspection. TRUE story, in Florida. Many buyers in our market are forced to waive the inspection contingency already. And many sellers preemptively order inspections. If the termite report is clean, what are you worried about?
VA loans have PMI (mortgage insurance). TRUE and FALSE. VA loans may have an upfront funding fee (FF), but this is sometimes waived if the veteran has a service related disability. But more importantly, no VA loans have monthly mortgage insurance. This is a big departure from an FHA loan, for example, and much to the benefit of the vet.
VA loans have great rates. VERY TRUE. When we're talking 30-year fixed, jumbo rates, it's tough to beat a VA loan.
So if you're a veteran, thank you! And know that a VA jumbo mortgage is an option you should explore.