An example can be seen here:

Purchase price ($500,000) – VA County Loan limit ($417,000) = $83,000 x Guaranty (25%) = Down Payment required ($20,750)

In counties where VA has set the limits higher, a veteran can borrow more with the same zero down. These loans are referred to as Jumbo VA Loans. These loans are extremely popular as they often have lower rates than Non-conforming Jumbos and even Fannie Mae Conforming Jumbo loans.

If you are in the market for a Jumbo VA loan, feel free to fill out a quick No Obligation Rate Request form here and you will be connected to a VA Loan Specialist that will get you all of the information you need quickly and with no pressure at all. Remember, any VA loan you do with the lender you are connected to, will be done FREE of charge from that lending institution…GUARANTEED.

You might ask, “If I were to refinance into a VA loan, what benefits would I expect to see?” Below are some examples of how refinancing into a VA loan could benefit you. If any of these examples fits your situation, you should seriously look into your options and consult a VA Loan Specialist soon.

VA Refinance Example #1

Veteran had purchased a house using a conventional loan, thus had to put 5-10% down and as a result, is currently paying mortgage insurance. The veteran can refinance into a new VA loan up to the lower of 100% of the value of the home or the payoff amount on his/her conventional loan plus any allowable fees, reasonable rate discount and new escrow.

VA Refinance Example #2

Veteran purchased a home with an 80/20 loan combo. S/he does not currently pay mortgage insurance; However the rates or combined blended rate is above the current VA refinance rates. So refinancing and lowering the rate and payment with a new VA refinance would be a benefit here.

VA Refinance Example #3

The veteran has a Jumbo loan and wasn’t made aware that when the house was purchased, a VA loan would have been the best rate scenario at that time. With Non-conventional and even conventional Jumbo rates being higher than VA Jumbo rates, the VA refinance makes complete sense as it would decrease the payment significantly and with no mortgage insurance.

VA Refinance Example #4

For one reason or another, the veteran purchased a house using an FHA loan, putting the standard 3.5% down at closing. With the fact that there is monthly mortgage insurance on FHA loans, and with a even the slightest drop in rate, refinancing into a new VA loan could be a big benefit on the monthly payment…especially when there is no mortgage insurance on VA loans.

Overall, there are many benefits of having a VA loan, but more importantly, refinancing into a VA loan that offers a lower rate and payment than your current loan only makes sense.

Inquire about a No Cost VA Refinance here

You’re not alone…and it’s not the only choice you have.

What most veterans don’t realize, on July 30, 2008, the President signed the Housing and Economic Recovery Act of 2008 which allows for a “Temporary Increase in Maximum Loan Guaranty Amount for Certain Housing Loans Guaranteed by the Secretary of Veterans Affairs.” As of 2010, this increase is still available, but no one knows for how long, which is the reason why I underline “Temporary”.

Basically, in short, veterans and current military personnel can get a zero down VA Loan over $417,000 in certain High Cost Counties around the United States. In fact, in some counties, you can actually get a zero down jumbo VA loan amount up to $1,094,625 and still with NO mortgage insurance!

Yet there are still so many veterans not taking advantage of this benefit they earned. Either they don’t know about it, they are working with a broker that doesn’t have much experience with VA loans (very common) or they are working with a broker that is not able to offer them (also very common).

With FHA’s mortgage insurance and Jumbo Conforming Private Mortgage Insurance “PMI”, if you are a veteran, VA Jumbo Loans should really be your only choice if you are looking to put less than 20% down.

Lastly, a common mistake made by veterans is to go with a broker they know, a realtor referral or simply, not do enough research. This could be a very costly mistake. Everyone knows that VA allows lenders to charge a 1% Origination fee. Of course, this can make a VA loan very pricey and often times deter the veteran from using their VA eligibility and taking advantage of the many benefits a VA Loan offers.

<<CONNECT WITH A JUMBO VA LOAN LENDER NOW>>

VA home loan useful, but watch for snags

For eligible service members and veterans, the Veterans Affairs Department’s home loan guarantee program can be a curse or blessing in today’s housing market. Among the advantages:

• It is among the few mortgage programs now available that does not require a down payment.

• In most locations, lenders will allow purchases of a home worth up to $417,000 without a down payment — and more than $1 million in some high-cost areas.

• Credit underwriting is a little easier with VA loans than with other mortgages. A buyer’s credit scores don’t have to be as high, and loans are possible with as few as six months of work history — not the minimum two years required for most mortgages.

• An inspection of the home is required to ensure it is safe and livable, which provides extra protection for first-time buyers.

But there are disadvantages:

• Not all lenders are willing to work with VA loans.

• A percentage of the loan fee (funding fee), charged by VA to offset the risk of having no mortgage insurance, could be wrapped into the mortgage, ranging from 0 percent for veterans with a service connected disability to 3.3 percent for second time or more use. I corrected this from the original post.

• There are limits on what fees can be charged to the buyer at closing; some sellers don’t want to be part of a sale that could force them to pay more closing costs.  This becomes a non-factor when a veteran works with a VA lender that charges Zero fees.

• A strict home inspection and appraisal process often can make it impossible to buy a home “as is.” If the seller won’t agree to repairs, either done in advance of settlement or by putting money into an escrow account, a VA loan may not be approved. Of course, this should be in the advantage category really, as it is there to protect the veteran from purchasing a “lemon” or “money pit” home that could cost thousands. Conventional loans don’t have this kind of protection. I personally found out the hard way when I got a conventional loan to purchase my house and since have put in THOUSANDS of dollars in repairs that the inspector my realtor recommended didn’t catch. I’ll talk more about this in a separate post.

• Many sellers and their agents believe VA loans involve more red tape than other loans. Many sellers and agents don’t understand VA loans either. This is up to your lender to step in and help them understand the steps involved and relieve them of the mis-guided anxiety they may feel. VA loans should take no longer than a conventional loan if you have the right VA lender working for you.

• Generally, VA home loans are more likely to be accepted in housing markets where troops, veterans and military retirees are a sizable part of the market. This seems like a very one sided comment. It is true but I’m not sure where I see this as a disadvantage…. or an advantage. VA loans are accepted throughout the country, regardless of demographics. Just make sure if you are building a home, you are working with a reputable builder that is approved by VA. Again, I’ll talk more about this in a separate post.