Tucson By Choice!: Jumbo VA Guaranteed Purchase Loans Available Up To $1,000,000.

Jumbo VA Guaranteed Purchase Loans Available Up To $1,000,000.

Vets get jumbo loansVeterans have an edge in the purchase market across the country.  While 100% financing has gone the way of the DoDo bird, qualified vets can still get 100% financing up to the conforming conventional limit of $417,000.  In some counties, that number can go as high as $729,750. with zero down.

That's where most realtors stop when talking to veterans.  Jumbo money is available to vets, though, and realtors in higher priced markets will want to re-think their focus.

Jumbo loans for Veterans?  Here's how it works:

Click on your state below (courtesy of VALoans.com) to find the maximum zero down amount for the county you're interested in. 

For Pima County in Arizona, for instance, that number is $417,000

In Dukes County, Massachussets, the maximum zero down amount is $736,250

The maximum VA guarantee amount in both cases, however, is $1,000,000.  Note that the veteran must qualify as follows for loans above the zero down amount for his/her particular county.

  1. For a purchase price exceeding the zero down amount, the borrower must come to closing with funds equal to 25% of the amount by which the purchase price exceeds the zero down amount

    Example:  In Pima County, AZ, with a contract price of $690,000. the borrower would have to come to the table with $68,250 towards the purchase price.  (690,000 minus 417,000 x 25%.)

  2. The VA funding fee cannot be financed above the maximum zero down amount, so in the example above, the veteran would have to pay that fee out of pocket.  (The VA funding fee for first time users is currently 2.15% of the loan amount, and 3.3% for subsequent uses of the VA eligibility.)

  3. The minimum borrower FICO score for all loans above $417,000. is currently 680, and a second appraisal will be required as of January 1, 2009.
Comment balloon 6 commentsMike Jones • January 20 2009 10:43PM

Comments

Thanks for keeping Vets on our minds and in the forefront. 

Posted by Fran Gatti, Managing Principal Broker - RE/MAX Integrity (RE/MAX Integrity) almost 10 years ago

Fran,

Thanks for being the first to comment.  Check out the maximum zero down amount for your county!

Mike in Tucson

Posted by Mike Jones, Mike Jones NMLS 223495 (SUNSTREET MORTGAGE, LLC (BK-0907366, NMLS 145171) ) almost 10 years ago

Good reminder I get so focused on the traditional financing I forget a bout VA.

Posted by Terry & Bonnie Westbrook, Westbrook Realty - Grand Rapids Forest Hills MI Re (Westbrook Realty Broker-Owner) almost 10 years ago

Thank you for providing this information.  I don't know anything about VA loans. 

Posted by Doreen McPherson, Phoenix Arizona Real Estate ~ (Homesmart ~ Scottsdale ~ Tempe) almost 10 years ago

Doreen,

You're welcome.  Who do you know (or can you get to know) at Luke AFB?  Veterans are buyers in this market, and they can move in to a home with nothing out of pocket.  The seller can pay closing costs up to six percent, and they're usually only half that.

Terry,

Who do you know who is military? 

Mike in Tucson

Posted by Mike Jones, Mike Jones NMLS 223495 (SUNSTREET MORTGAGE, LLC (BK-0907366, NMLS 145171) ) almost 10 years ago

Mike,

Good information. Thanks for keeping abreast of this and passing it along to us. :)

Steve

Posted by Steve Hoffacker, Certified Aging In Place Specialist-Instructor (Steve Hoffacker LLC) almost 10 years ago

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