VA Jumbo Loans

[peterinsj]

I haven't seen this topic posted here before so I kjust wanted to throw it out there for anyone shopping for a home. I have talked with many vets over the past several years and so far none of the have known about VA Jumbo loans and they all assumed (wrongfully) that in Santa Clara County they could not use a VA loan due to the high property prices. You can get VA loan - above the max for your area - with all the protection the VA terms provide! You will have to put up some down payment, but not the typical 20% to avoid PMI. My wife and I bought our current home this way, both the sellers & buyers agents had never heard of VA Jumbo loans before and they each had 20+ years in the realty sales.


The following info was copied from one of the many websites offering info on the VA Jumbo Loan program:

"Is it possible to go over the VA County Loan Limit?

YES, it is possible to go over the county limit, BUT there will be a down payment requirement.

You will be required to put down 25 cents for every dollar over the VA Loan Limit.

Say you want to buy a home for $650,000 but your VA Loan limit for your county is $425,000. That is $225,000 over your county limit. Your down payment would only be 25% of the difference between the two or $225000*.25= $56,250. In this example, that is only 8.6% down. Way less than you will find with any other loan products out there. "

So if your looking at buying a home and qualify for a VA loan check out the Jumbo program, I did and am glad it wass available

[RussG1]

I'm mortgage broker in San Jose-- It is a good way to go in this high valued market.. better then a conventional jumbo

[Snoopy47]

I recommend those including the VA as a source for home financing compare it to other options you might have as well. They may not be the best option if you shop around hard enough.

Having worked in Bank/Credit Union corporate finance it's clear to me everything from everywhere is closely tied to market forces competitors fight in. The VA isn't losing money making these loans which puts them on par with banks that compete with them.

[peterinsj]

No PMI

I think that not having to pay PMI without having to come up with the typical 20% down represents a significant money savings, not to mention the challenge of saving up that 20%.

I recommend those including the VA as a source for home financing compare it to other options you might have as well. They may not be the best option if you shop around hard enough.

Having worked in Bank/Credit Union corporate finance it's clear to me everything from everywhere is closely tied to market forces competitors fight in. The VA isn't losing money making these loans which puts them on par with banks that compete with them.