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What You Should Know About VA Jumbo Loan Eligibility!

December 11, 2022blog0

VA Jumbo Loans don’t have fixed loan ceilings, unlike conventional jumbo loans. You can borrow more when buying a home because they are only constrained by your eligibility and entitlement. Thankfully, loans provided by the Department of Veterans Affairs (often known as VA Loans) have additional advantages. No prepayment fees, how does that sound? Private mortgage insurance (PMI) is also not an issue for those who are eligible for VA jumbo loans.

Interest rates are one of the greatest distinctions between VA and non-VA jumbo home loans. VA jumbo loans typically have the same interest rates as regular VA Loans, although this will depend on the lender. Jumbo loans typically have higher interest rates than loans that fall within the conforming loan limits.

Eligibility

Therefore, who qualifies for VA jumbo loans? To qualify for a typical VA loan, you must first fulfill all eligibility conditions, which include being a service member, veteran, or surviving spouse of a service member or veteran. If you are qualified to use the VA Home Loan Benefit, your Dream Home Mortgage loan officer can assist you with obtaining the necessary documents. If you want to use your VA home loan benefit, it’s crucial to keep in mind that the house you’re buying must be your primary residence. The house must also pass regular inspections, which may include a termite inspection for a VA loan.

Qualifications

Have you considered your eligibility? Great! We appreciate your service, along with that of your family. Here are several prerequisites for VA jumbo loans that you should be aware of.

Prerequisites for credit scores

The rules for VA jumbo loans may be a little tighter than those for VA loans with lower balances. For instance, credit score requirements may be greater (but will vary slightly by lender). As opposed to roughly 580 for a lower-balance VA loan, the FICO credit score required for loans with bigger balances might be as high as 720.

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Down payment Requirement

Standard VA loans are renowned for not requiring a down payment. In some circumstances, jumbo VA loans may provide the same advantage. It all comes down to how much entitlement you still have. What a borrower has available for guaranty on a mortgage is known as entitlement. You can get assistance from your loan officer in figuring out your entitlement. You might not be fully entitled to your home loan benefit if you’ve already started using it. This only applies to people who have active VA loans, a foreclosure, or who have had a short sale completed on their house. If your VA loan has been fully repaid or the property on which it was secured has been sold, you should still be eligible for your full entitlement.

Debt-to-income ratio

For VA jumbo loans, the maximum debt-to-income (DTI) ratio is 50%. This means that your total monthly debt obligations—including your mortgage payment on the VA jumbo loan and all of your other obligations—cannot be greater than 50% of your pre-tax monthly income. You can also qualify for High DTI Mortgage Program.

Getting Started

Are you prepared to explore your interest in VA jumbo loans further? Dream Home Mortgage is available whether you’re just seeking for more information or are ready to get started on a VA jumbo loan, so give us a call anytime.

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We can assist you!

Our expert lenders at Dream Home Mortgage are here to help you every step of the way. Call us (972) 245-5626 to book a free one-on-one consultation with one of our specialists.

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