What is a VA Jumbo Loan?
What is a VA Jumbo Loan?
A VA Jumbo Loan is a type of mortgage loan that is backed by the U.S. Department of Veterans Affairs (VA) and is designed to help veterans and active-duty military members purchase homes that exceed the loan limits for traditional VA loans. Jumbo loans are larger than the standard conforming loan limits set by Fannie Mae and Freddie Mac.
The VA Jumbo Loan program allows eligible veterans and military members to borrow up to a certain amount without having to make a down payment. The loan limits for VA Jumbo Loans vary by location, and they are determined by the Federal Housing Finance Agency (FHFA). In areas with higher costs of living and higher home prices, the loan limits may be higher.
To be eligible for a VA Jumbo Loan, borrowers must have a Certificate of Eligibility (COE) from the VA, which verifies their service and entitlement. They must also meet the VA’s income and credit requirements.
Some of the benefits of a VA Jumbo Loan include:
No down payment: Veterans and military members can borrow up to a certain amount without having to make a down payment.
Lower interest rates: VA Jumbo Loans typically offer lower interest rates than other types of jumbo loans.
No private mortgage insurance (PMI): VA Jumbo Loans do not require borrowers to pay for PMI, which can save borrowers thousands of dollars over the life of the loan.
More flexible credit requirements: VA Jumbo Loans may have more flexible credit requirements than traditional Jumbo loans.
Overall, a VA Jumbo Loan can be an excellent option for eligible veterans and military members who are looking to purchase a higher-priced home. It can help make homeownership more affordable and accessible by allowing borrowers to take advantage of the benefits of a VA loan while still being able to borrow a larger amount.
If you are ready to get started with a VA Home Loan, apply today! For more information, please contact our VA experts at 833-VA-Expert. (833) 823-9737
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