A loan guaranteed by the Department of Veterans Affairs, also called a Florida VA loan, is a very important benefit available to many veterans. While the VA doesn’t loan money, it guarantees 25 percent of the mortgage amount, allowing veterans to borrow money from qualified lenders at favorable rates. It also allows veterans to borrow up to $417,000 (more in some high-cost areas) without having to make a down payment.

But what happens when the home you want is over that limit? A VA jumbo loan may be big enough to cover your dream home. VA jumbo loans are available in amounts up to $1,000,000, but there’s one requirement: You must pay 25 percent of the amount you borrow that’s above and beyond the loan limit.

For example, if you want to buy a home that costs $600,000, and the loan limit in your area is $417,000, the difference between the two amounts is $183,000. You’ll need to make a down payment of 25 percent of $183,000, or $45,750. That’s a down payment of only 7.625 percent of the total purchase price. Typically, jumbo conventional loans require a down payment of at least 10 percent, and also require private mortgage insurance (PMI), which further increases the cost.

VA loans are subject to eligibility requirements, so you need good credit, sufficient income, and a valid Certificate of Eligibility (COE) from the VA. Even if you’ve already used a VA loan, you may be able to have your entitlement restored if that loan has been paid in full or assumed by another veteran.

Talk to the experts

If you’re considering a Florida VA loan, or a VA Jumbo Loan, the mortgage professionals at Embrace Home Loans can help you get the financing you need. Contact us at 407-733-6425 or browse our website, and let us show you how a VA jumbo loan can help put you in the high-end home you want.

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