Big Loans for Big Dreams: an Introduction to Jumbo VA Loan Rates
If there’s one group of people who truly deserve to get their dream home, it’s the Veterans. This is exactly why the government created the VA home loan program. This financial aid allows Veterans to purchase a home without shelling out any down payment as long as the total cost of the house does not go beyond $417,000.
But what if you’re eyeing a splendid beachfront property in Hawaii which will not only be your primary residence, but also serve as your retirement haven in the future? This is a big dream that can easily costs over $417,000. This is where VA jumbo loans come in.
Definitely Not a Mumbo Jumbo
Any VA mortgage exceeding $417,000 is classified as a jumbo loan. The Department of Veteran Affairs (VA) designates several counties as high-cost counties. Jumbo VA loan rates vary from county to county. Currently, Honolulu Hawaii has the highest loan able amount at $695,750. So if you’re looking for something grand, try looking in these high cost counties where the loan limits are much higher.
What if You Want Something Beyond the Limit?
What if you want to purchase a home worth $1,000,000 in Honolulu? This goes beyond the maximum VA jumbo loan rates. You can still avail of the VA jumbo loan, but you will need to pay a 25% equity or down payment on everything in excess of the VA loan limit. So in this case, you have to pay 25% down on $304,250 which is roughly around $76,000. While you did not get to enjoy zero down payments for the entire amount, it’s still much lower as compared to paying the 25% on the entire mortgage.
Interest Rates and Limitations
In terms of interest, the national average on VA Jumbo loans rates of interest is at 3.75% with an APR of 3.837% for a 30-year fixed mortgage and 3.5% with an APR of 3.65% for a 15-year fixed mortgage. Please take note that the interest rates for VA jumbo loans are fixed and non-negotiable. Further, you cannot apply for a VA jumbo loan to purchase a mobile or prefabricated home. Finally, a FICO score of 640 is a mandatory for any VA loan higher than $650,000.
After putting your life on the line for the sake of your beloved country, you definitely deserve to live in your dream home. See if you qualify for a VA jumbo loan today.
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