Can you get a VA Jumbo Loans Over $417,000? YES!

Can you get a VA Jumbo loan?

Yes, the Department of Veterans Affairs has allowed Jumbo VA loans for years. The basic VA rule is their loan limit follows the Fannie Mae conforming loan limit, which is currently $417,000 in most of the country.

VA Loans also allows for higher loan limits in certain higher cost counties in states like Hawaii, California, and Florida. Conforming loan limits in some of those area can be more than $417,000. You can check VA loan limits in your area here, (select the Fannie Mae option) but generally speaking, the bulk of the country is at $417,000.

Normally a VA Home Loan requires NO DOWN PAYMENT. But if you are looking for a VA loan in Minnesota, a $417,000 limit area, can you buy a more expensive home with a VA loan? Yes, but the general rule is that if someone borrows more than the conforming limit, a down payment is required. A down payment for a Jumbo loan is based on what the VA will guaranty, or in other words -- ENTITLEMENT.

For instance, if living in a county where the loan limit is $417,000, but a consumer wants to borrow more than that, he or she would generally need to come up with a down payment equal to 25% of the amount needed over $417,000. Let's say you are buying a home for $700,000 where the loan limit is $417,000. The difference is $283,000. VA requires you put down 25% of the difference. 25% in this example is $70,750 - which would be the required down payment. Therefore the maximum actual loan amount would be $629,250. This works out to be 89.89% loan-to-value.

A second example is a home that sells for $650,000. Now subtract the maximum "zero down" VA loan amount of $417,000 to get $233,000. Twenty-five percent of $233,000 is $58,250. That's the down payment needed from the veteran. That works out to about 9 percent down payment on a $650,000 home!

When compared to down payments required for conventional loans, the VA Program is difficult to beat, especially as there is NO Mortgage Insurance, which is a HUGE advantage over other loans with less than 20% down. For VA-eligible borrows, the VA Home Loan Guaranty Program is one of the best, no money down home financing options out there. And, Jumbo VA loans, while needing a down payment, are no exception.

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