Let’s talk a little bit about maximizing your benefits with a Jumbo VA loan. This has become a much more widely used product over the years. Veterans have realized how superior this loan is to other jumbo loan products. The less restrictive loan amounts and lower down payment requirements give veterans greater spending power. Whether it be to purchase a nicer home suitable for you and your family or have access to more equity for reasons such as investing or debt consolidation, the VA jumbo loan can be an amazing tool for veterans.
However, there are some things to consider before moving forward with any jumbo VA loan. It’s not always a walk in the park for every veteran. The lender you choose can have a major impact on if and how much you can get approved for.
VA Lender Restrictions
Even though VA doesn’t have many restrictions regarding VA jumbo loans other than the VA county loan limits, the lenders do. Some lenders restrict veterans to 50% debt to income ratios while others may limit the loan amounts to the VA county loan limits. In both of these cases, the veteran would be limited to how much he or she can borrow. This could be the difference in getting the home you want or having to settle for something less.
This is why it’s extremely important to find just the right lender that won’t limit you. In addition to this, you absolutely want to find a VA lender that doesn’t charge lender or origination fees. With the loan amounts much higher, and quite a few lenders adding in a 1% origination fee, you can see how that would make a jumbo VA loan a more expensive alternative than it would normally.