A jumbo VA loan is a popular type of mortgage loan that is offered through the Veterans Administration. Here are the basics of a jumbo VA loan and how it can help you as a home purchaser.

VA Jumbo Loans

The VA offers a great mortgage program for all veterans and active military personnel. Most of the time, you should be able to secure a loan with no down payment. However, with a VA jumbo loan, you may have to come up with some money out of pocket. With a traditional VA loan, the maximum loan amount is $417,000. Therefore, as long as you keep the value of the loan below $417,000 you will not have to come up with a down payment.

If you want to purchase a home that cost more than $417,000, you can still do so with a VA loan. However, anything over $417,000 is considered a jumbo loan and you will have to pay 25% of anything that is above that figure. For example, if you purchase a home for foreign $450,000, you will have to pay 25% of $33,000. Therefore, your down payment would be $8250. This is still a very reasonable down payment for a loan that is so large.

blog comments powered by Disqus