Mortgage loans guaranteed by the Department of Veterans Affairs (VA) are a great deal for eligible veterans here in Florida. Qualified veterans can buy a home costing up to $417,000 in most Florida counties with no money down. In two counties, Monroe and Collier, the limits are even higher ($529,000 and $448,500, respectively). What happens, though, if you’re looking at homes that cost more than $417,000? Homes in many areas of Central Florida, for example, like Winter Park, Isleworth/Windermere, Heathrow, Alaqua, or Lake Nona, can easily exceed that price.

So, what can veterans who want a larger home do? One answer is a VA jumbo mortgage. A jumbo loan is any loan that exceeds the $417,000 limit. The VA doesn’t actually set maximum limits on its loans. However, lenders who want to sell their loans in the secondary market have to keep their loans within the maximum limit set by the Government National Mortgage Association (GNMA or Ginnie Mae). In Florida, that limit is $1,000,000. And, like regular VA loans, jumbo VA loans come with a lot of advantages:

  • Better rates. VA jumbo loans are still partially guaranteed by the VA, so lenders can recover at least part of their money if the loan goes into default. That means their risk is lower and lenders will typically charge lower rates. That significantly reduces your monthly payment.
  • Lower down payment. Unlike regular VA mortgage loans, VA jumbo loans do require a down payment. However, it’s frequently much lower than you would need to pay for a non-VA jumbo loan.
  • Fewer restrictions. Lenders have very strict requirements to qualify for non-VA jumbo loans because the risk is much higher. Because the VA backs part of VA jumbo loan, borrowers don’t need to meet as many underwriting qualifications.
  • No mortgage insurance. Jumbo VA loans do not require private mortgage insurance (PMI). That saves you even more money.

Ask an expert

An experienced VA jumbo mortgage lender, like Embrace Home Loans, can guide you through the qualification process and help you obtain a mortgage loan that’s big enough to meet your needs. Call us today at 407-733-6425, and let us get to work for you.