Contrary to popular belief, any qualified veteran and active military personnel can get a zero down VA jumbo loan above the conforming loan limit of $510,400. In fact, as of January 1, 2020, VA has eliminated its restrictions on Jumbo VA loans. No longer are there limitations requiring down payments on VA loans exceeding the county loan limits. Some lenders may have their own loan limit restrictions but when you inquire about VA jumbo loans through VAloanlending.com, you will always have the opportunity to get a jumbo VA loan without loan limitations.. You can be sure, the larger the loan, the more you will save as well with ZERO closing cost.
Why Choose a Jumbo VA loan?
There are many reasons to choose a Jumbo VA loan. If summed up in one word though, it would be savings. There is no other loan product available that can save a person such an incredible amount of money than a VA loan with the right lender. When a veteran can find a lender that charges ZERO fees vs a lender that charges 1% origination fee, you can see how that would benefit you tremendously. That’s comparing VA loan to VA loan. However, when compared to other products on the market, nothing compares.
Let’s get into the details…
This is generally a common fact but one that shouldn’t be overlooked. VA loans have lower rates than any other mortgage product available…bar none. The savings you get grows exponentially as the loan amount increases. A $250,000 loan at 3.25% versus a conventional at say, 3.875% saves you approximately $93/month. That’s over $33K in savings for the term of a 30 year loan. That same rate comparison on a million dollar loan is approximately $126K in term savings!
No MI Equals Even Lower Payments
As you can see, with lower rates come lower payments. What wasn’t mentioned is the fact that there is ZERO mortgage insurance on VA loans. Now to be fair, in most cases, there aren’t a lot of options available to compare since conventional and FHA are restricted by loan limits. However, there are some jumbo loan products that will exceed county loan limits. These products have ridiculous mortgage insurance prices. These extra monthly charges can easily run in the mid to high hundreds per month depending on the loan amount. This of course makes the decision to go VA a no brainer.
Zero Down Payment
As mentioned, county loan limits are no longer being implemented by VA. This now means that veterans and service members can purchase homes above the county loan limits with zero down payment requirements. This saves veterans hundreds of thousands of dollars that can be used for other purposes.
What are downsides
The main downside to a jumbo VA loan, or really any VA loan for that matter, is the funding fee. The VA funding fee can add thousands to a standard VA loan. In fact, on a $300K loan, that number jumps into 5 figures. Triple that on a $900K loan. There are ways to reduce this. Closing cost assistance for VA loans can come in many forms and come from several different sources.
VA County Loan Limits
Don’t be mislead to think that county loan limits don’t come into play. They still are a factor in VA loan lending. A veteran that has eligibility available will still be able to get a 2nd VA loan even though the first VA loan hasn’t been paid off. County loan limits will be required to determine the maximum the veteran can borrow. Check out VA county loan limits in your area should you find yourself in this situation. It may save you time, money and headaches.