Are you a veteran or a member of the U.S. military who needs a very large loan amount for your home? Good news! Quicken Loans is proud to offer the VA jumbo loan for amounts over $453,100 (or $484,350 under new loan limits that start January 1) – up to $1.5 million.
VA jumbo loans are a top benefit for veterans and military personnel because they have more flexible requirements and higher loan amounts than conventional loans. Contrary to popular belief, the Department of Veterans Affairs (VA) actually doesn’t write the mortgages. Instead, the VA insures the loans that are written by banks and mortgage companies. Financing (or refinancing) with VA loans is only available for veterans and active members of the U.S. military and their spouses (even widows, as long as they haven’t remarried).
Does the VA Offer Jumbo Loans?
Many people know about the VA loan, but the VA jumbo loan is a lesser-known offering intended to help people who are looking at houses with prices higher than conforming loan limits. We’ll get into a bit more detail on those loan limits below, but in general, the conforming loan limit is $453,100 ($484,350 January 1).
They also offer all of the benefits of a standard VA loan. We’ll dig into those a bit later on.
Why Is the Loan Limit Different in My Area?
In most areas of the country, the general conforming loan limits apply. If you live in a county that’s considered a high-cost area, there may be higher loan limits before you have to go with a jumbo loan.
VA loans follow conventional loan limits. You can find the conventional loan limit in your area here.
The Benefits of VA Jumbo Loans
The VA jumbo loan offers higher refinancing amounts than many typical conventional loans. These flexible guidelines often allow more homeowners to refinance in difficult housing and financial markets. Here are some of the benefits of refinancing with a VA jumbo loan:
- If you’re purchasing a home, you have the option of doing so without a down payment. If you’re looking to lower your rate or change your term, you can refinance up to your full loan amount.
- VA loans allow up to a 90% loan-to-value ratio on cash-out refinances. This means you only have to leave 10% equity in your home and can convert more of your home’s existing value into the cash you need.
- There’s no mortgage insurance with a VA loan.
- There are no prepayment penalties on VA loans.
- VA assistance is available for veteran borrowers in default due to temporary financial difficulty.
- You have the ability to roll the VA funding fee into the refinance amount, and there’s no funding fee for disabled veterans or surviving spouses.
Jumbo VA Loan Requirements
VA jumbo loans require a higher credit score than the usual VA loans due to the high loan amounts. The minimum credit score is 620 for regular VA loans, but for jumbo loans, the minimum score is 640.
Regardless of whether you’re purchasing a new home or refinancing, now is a great time to take advantage of the benefits you earned. Give us a call today at (800) 785-4788 to find out more about which loan option best suits you and your family.
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