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VA JUMBO Loans
HUGE SAVINGS with VA Jumbo loans under $1,000,000. Compared to conventional
jumbo loans you can save Hundreds of Dollars each
and every month. Plus, you could save Thousands of Dollars
with smaller down payments and lower closing costs.
VA Jumbo loans are loans from $417,000 to $1,500,000 and require a down payment equal to
25% of the amount over $417,000. If you don't have full entitlement, the amount of entitlement
you have already used must be added to the 25%. The standard VA Funding Fee is required. Loan
amounts from $1,000,000 to $1,500,000 require a large price adjustment to the rate.
The example below will show you how you could be saving $746.35 each and
every month on your $650,000 home. Plus, you could save an additional $7522.87
on your down payment and closing costs.
| |
Conventional
Jumbo |
VA Jumbo |
Other
Savings |
| Sales Price |
$650,000 |
$650,000 |
- |
| Min. Down Payment |
10% - $65,000 |
8.962% - $58,250 |
$6750 |
| Loan Amount |
$585,000 |
$591,750 |
- |
| VA Funding Fee |
N/A |
$8876.25 |
- |
| Final Loan Amount |
$585,000 |
$600,626 |
- |
| Interest Rate |
7.75% |
6.25% |
- |
| Origination Fee |
0.858% |
0.707% |
$727.87 |
| APR |
8.250% |
6.487% |
- |
| Payment |
$4444.51 |
$3698.16 |
- |
| Monthly Savings -------------------------------------------> |
$772.87 |
- |
| Total Cash Saved on Origination Fee
and Down Payment ----------------> |
$7522.87 |
| Descriptions |
CV Jumbo |
VA Jumbo |
| Eligibility |
Any qualified borrower with sufficient down payment |
Veterans in good standing with sufficient VA entitlement & down payment to insure
the loan |
| Down Payment |
15% to $650,000
20% to $1,000,000
25% to $1,500,000 |
Varies - 2% @ $500,000
9% @ $650,000
15% @ $1,000,000
20% @ $1,500,000 |
| Maximum Loan Amount |
$650,000 up to 90% LTV
$1,000,000 to 80% LTV
$1,500,000 to 75% LTV |
$1,500,00, including financed VA Funding Fee |
| Private Mortgage Insurance |
PMI is required on loans over 80% LTV |
No PMI, but VA Funding Fee is required |
| Rates |
< $1M - About 1% higher |
<$1M - About 1% lower
Click Rates Tab above |
| Loan Term |
30 or 15 year |
30 year only |
Guidelines
| Purpose |
Occupy |
Units |
Max. LTV (1) |
Max. Loan
Amount (1) |
| Purchase |
Primary |
1-4 |
varies (2) |
$1,500,000 (3)(5) |
| IRRRL (4) |
Primary |
1-4 |
varies (2) |
$1,500,000 (3)(5) |
| Refinance Other |
Primary |
1-4 |
varies (6)
Max = 90% |
$1,500,000 (3)(5) |
- Assumable - Yes, but the new borrower must qualify for the
loan to assume it.
- Appraisals - Two appraisals may be required on loans over
$1,000,000.
- Buy-downs - Not allowed.
- Closing costs - VA limits what closing costs can be paid
by the veteran. Your good faith estimate will itemize all your fees.
- Credit Scores - VA does not set credit score limits, but
all of our lenders do. Generally, scores below 620 will require a more thorough review of
your credit. Scores below 600 will be difficult and scores below 580 will require credit
repair before the loan is approvable. Credit scores below 661 now require a price adjustment.
The following adjustments are to the points. As a rule of thumb, 0.50% in points equals
about 0.125% in the rate. So if you have to add 0.75% pt. your rate will go up about 0.25%,
i.e., 7.0% to 7.25%..
- 620 - 660 = add 0.25 pt.
- 600 - 619 = add 0.625 pt.
- 580 - 599 = add 1.25 pt.
- 580 Minimum.
- Down Payment - VA Jumbo loans require
a down payment equal to 25% of the excess over $417,000, based on full VA entitlement. Less
than full entitlement will require additional down payment.
Use the calculator below to compute the minimum down payment for
any sales price.
You can also
view a set of tables
 showing the minimum
down payment, VA funding fee, loan amount, etc. for various sales prices from $450,000 to
$1,800,000.
- Loans greater than $700,000 also require:
- No foreclosure or bankruptcy in past seven years
- No housing payment 30 days or more past due in the last 12 months
- 620 middle credit scores for purchase or rate/term refinances and 660 for Other
Refinances. Loans greater than $1,000,000 require 700 credit scores.
- Loans greater than $700,000 are underwritten on a case by case basis. Additional
restrictions may apply.
- DTI - Debt to income ratios up to 41%+ using manual underwriting
(VA guidelines). Using automated underwriting will allow higher DTI ratio.
- Eligible Property Types - 1-4 unit homes, townhouse, approved
Condos and PUDs.
- Energy Efficiency Improvements - May be added to your loan
amount up to $3000 if costs are documented.
Amounts over $3000, up to $6000 may be added, but require the costs to be documented and
must show the resulting increase in the monthly P&I payment does not exceed the likely reduction
in the monthly utility costs resulting from the energy efficiency improvements. (This must
be documented).
- Interest Rates - VA Jumbo interest rates on loans less than
$1,000,000 are much better than conventional Jumbo loans.
- Loan Type - 30 year fixed rate loans only.
- Maximum Loan Amount - $1,500,000 including the VA Funding
Fee, if financed. Loan amounts from $1,000,000 to $1,500,000 require a large price
adjustment to the rate.
- Occupancy - You MUST occupy the home you intend to buy within
60 days after closing. NO investment properties or second homes.
- Residency - 1-4 family primary residences only.
- Seller Concessions - Closing costs cannot be financed in
the new loan amount. They can be paid by the seller. The cost to the veteran can be as little
a $0 to move in.
1) Negotiate the best price you can, then
2) increase the sales price the amount of your closing costs and
3) have the seller use those funds to pay your closing costs for you.
* The only limit on this is the sales price cannot exceed the appraised value. **We're always
glad to help you and your realtor with the proper numbers for all this...
- VA Funding Fee - VA does not require mortgage insurance,
but, does require a VA Funding Fee. This is a percentage of the loan amount that can be
paid at closing or financed in the loan amount. The VA Funding Fee for veterans is currently
2.15% for 1st use and 3.30% for subsequent use. National Guard & Reservists are 2.40% and
3.30%.
See VA Funding Fee table for more details
Veterans with a 10% or greater VA compensable disability rating should
be exempt from the VA Funding Fee. VA will verify this on your COE.
Note:
Guidelines subject to change without notice. Additional guidelines and restrictions may
apply.
Submit your loan application for approval.
VA Jumbo
30 Year Fixed Loans
30 day lock. |
Conventional Jumbo
"Gold"
30 Year Fixed Loans
30 day lock. |
| Rate |
Points |
APR |
Rate |
Points |
APR |
| 5.875% |
0.559% |
5.972% |
7.500% |
0.821% |
7.641% |
| 6.000% |
0.090% |
6.054% |
7.625% |
0.527% |
7.737% |
| 6.125% |
-0.362% |
6.137% |
7.750% |
0.256% |
7.835% |
| 6.250% |
-0.755% |
6.226% |
% |
% |
% |
VA Notes:
Maximum VA JUMBO loan limit is $1,500,000.
Down payment Required.
30 yr fixed rate only - Other restrictions apply.
Loan amount => $1,000,000 add 5.0 pts.
Credit Scores:
620 - 660 = add 0.25 pt.
600 - 619 = add 0.625 pt.
580 - 599 = add 1.25 pt.
580 Minimum.
Loan amount > $700,000 = minimum 620.
Loan amount > $1,000,000 = minimum 700. |
CV Notes:
Maximum LTV = 90%.
Maximum Loan = $1,500,000.
Maximum DTI = 45%.
Second homes add = 0.25% Pt.
Second Home Cash-out:
<= 75% LTV add 0.25% Pt.
> 75% LTV add 0.50% Pt.
Credit Scores:
>700 = -0.125% Pt.
CLTVs > 80% CS < 700 add 0.375%.
CLTVs > 80% CS = 700-739 add 0.375%.
Minimum = 680. |
| Additional adjustments & restrictions may apply <> Contact
us for a
Good Faith Estimate |
Huge Savings...
Apply Now for your VA Jumbo loan.
Lock your rate at 888-623-7083 or in Austin
call 259-7788...
Rates are subject to change without notice until locked in.
Rates on this Page Last Updated:
08/28/2008 5:01 PM
Pre-Approval - Loan Application
Purchase Loan Application - This is a complete loan application and purchase
questionnaire. It should take from 15 to 30 minutes to complete.
- Click
here
for a general list of information needed to complete your application.
- After reviewing your application and credit report, your loan will be submitted
for Automated Underwriting prior to calling you to discuss your application unless
additional information is needed from you.
- The results will be emailed to you with a GFE for your review. Rates are subject
to change until locked in. Please call our office to lock your
rate.
- Your complete loan application and disclosure forms will be overnighted to you
for your review and signatures, along with copies for your records. A written list
of the required documents needed and a return overnight envelope will also be included
for you to return the documents to us.
- The only upfront costs to you are the credit report/AUS fee($39) & the appraisal
fee($350). These fees are listed on your Good Faith Estimate. Click
here
for more details on the loan process.
Note: If for some reason your loan cannot be approved through our
Automated Underwriting Systems and traditional underwriting is required, some additional
costs may be required and you will be advised in advance. More details on "Traditional
Underwriting" can be found
here .
Pre-Qualify
Pre-Qualify
- This is a short form that only takes a few minutes to complete.
- It will give us the info we need to pre-qualify you according to your income,
debts and funds available for down payment and closing costs.
- The results will be emailed to you with a GFE for your review.
- The Pre-Qualify form is primarily designed for borrowers with good credit since
NO credit report will be pulled with this prequalification.
Email or call us if you need additional information.
FAQs
An unmarried surviving spouse is eligible if the veteran died as a result of a service connected
disability or while on active duty.
Children are not eligible.
NO. Not together. You must be married. The veteran can purchase in their name only using
only their income and debts to qualify.
Yes, but the amount VA will guarantee remains the same - 25% of the loan amount, up to $417,000.
** Most lenders are not able to do this type of loan because of system limitations.
We do not offer this type of loan.
Purchase Loans
Veteran must certify that they will personally take occupancy within 60 days of closing on the
loan.
IRRRL Loans
Veteran must certify that they once occupied the home.
* If you have a home with a VA loan that you now rent, but once lived in,
you can refinance with a VA Streamline Refinance Loan (IRRRL). That's a big savings over an
investment property loan.
1) When you have sold your previous home and the VA loan is paid in full, or
2) When you have sold your previous home to a veteran who substitutes his/her entitlement for
yours, or
3) When you have paid off a VA loan, but still own the property. VA will reinstate your entitlement
for this purpose one-time only. After that you must sell your properties that have or had VA
financing on to use your entitlement again.
DIVORCED?
1) Your ex-spouse must refinance the home and/or pay off the VA loan, or
2) Your ex-spouse is a veteran who agrees to substitute entitlement for yours.
Private lenders make the loans, however, the VA guarantee protects the lender against loss.
The VA guarantees 25% of the loan amount, up to $417,000.
Maybe. This depends on how much entitlement you have left for VA to insure the new home.
Plus, you will have to put the additional amount up as additional down payment.
Example:
Maximum entitlement is $104,250. If your current VA loan used $20,000 of entitlement and your
minimum down payment on the VA Jumbo loan is $50,000, you would need a total down payment of
$70,000.
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Fax:
512.259.4408
