Do you know VA home loans come in jumbo size? The regular conforming VA home loan limit is $417,000. But if a veteran needs a higher-balance loan, there is a solution. The VA Jumbo Home Loan takes over above the $417,000 level and can go up to $700,000.
For a purchase, the debt-to-income ratio is generally limited to 41 percent and the credit score 680 or higher. No down payment is required, making this a true 100 percent loan to value. There is no limit on seller’s help toward the buyer’s closing costs. There isn’t any monthly mortgage insurance, and the loan can be assumed by a future buyer of your home, with some restrictions.
For a rate/term or cash out refinance, the loan amount can be 90 percent of the home’s value, including the upfront funding fee. The debt-to-income ratio is usually limited to 41 percent and a median credit score of 680 or higher. Cash out is limited to $325,000 once the liens are paid off.
With an Interest Rate Reduction Refinance, there are no qualifying debt-to-income ratios, unless the new total housing payment is more than 20 percent higher than the current payment. These loans go up to 100 percent of the home’s value.
Any veteran who receives military disability income pays no upfront funding fee.
There is no monthly mortgage insurance on VA home loans.
Examples based on a 4 percent interest rate on a 30-year fixed rate available April 30: $450,000 loan amount with no upfront funding fee, $2,148.37, principal and interest; $500,000 loan amount with no upfront funding fee, $2,387.08, principal and interest; $550,000 loan amount with no upfront funding fee, $2,625.78, principal and interest; $600,000 loan amount with no upfront funding fee, $2,864.49, principal and interest; $650,000 loan amount with no upfront funding fee, $3,103.20, principal and interest; $700,000 loan amount with no upfront funding fee, $3,341.91, principal and interest
If you are a veteran, why not use your benefit to realize your financial goals?
JoAnn Moore is owner and president of The Mortgage Market of Delaware, a Licensed Mortgage Professional and Certified Military Housing Specialist, Georgetown. Call the office at 302-855-1306, cell 302-236-1229 or email MMODJoAnn@aol.com.