Can I get a VA Loan that is higher than my County VA Loan Limit?
Yes. A common misconception with VA Loans is that VA Loans aren’t used in your area, or the VA Loan amounts are too low for your City. In the past this was true, but VA Loan changes have improved the picture. VA loans and VA Jumbo Loans are available much higher than $417K, the standard VA Loan Limit.
VA Loans at loan amounts above $417,000 are called VA Jumbo Loans, VA High Balance Loans, or VA Super Conforming Loans. While many counties in the country are limited to the $417,000 amount, that isn’t the highest VA loan available for that particular county. VanDyk Mortgage offers VA loans up to $1,500,000 in all the states we serve. What changes is the amount of required down payment or home equity. Each case is unique depending on your VA County Loan Limit and your Home’s purchase price or value for VA refinance.
In counties where the loan limit is lower than your purchase price or refinance loan amount, you may have to have equity (for a VA Jumbo refinance) or put a down payment (for a VA Jumbo Purchase).
So what is the benefit of using a VA loan in this scenario? – Lower down payments than conventional alternatives, fixed rates, no Mortgage Insurance, ability to combine a first and second mortgage, or get cash out up to 90% of your homes value.
Let’s say you live in a county where the VA loan limit is $417,000 (such as Fresno, Riverside or San Bernardino counties in California). You want to purchase a home that is $450,000 with a little of down payment possible. Assuming that you have full VA eligibility & fully restored VA Entitlement, VanDyk Mortgage will allow a VA loan in this scenario up to $441,750, requiring just $8,250 down payment, or 1.83%.
The goal of the VA calculation is the reach a guarantee figure of 25% of the loan amount. This can be a combination of the Entitlement and a down payment.
Here is the math to figure this out:
1. Take your county loan limit (in this case $417,000) and multiply times 25% to reach your maximum entitlement and guaranty available ($417,000 x .25 = $104,250)
2. Take your purchase price and multiply times the minimum guaranty required. ($450,000 X .25 = $112,500)
** since this figure is higher than your maximum guaranty and entitlement from #1, we must now figure out how to handle the shortage.
3. Take #2, the Minimum required guaranty ($112,500) and subtract the available guaranty and entitlement for you ($104,250) and it yields us $8,250.
$8,250 represents the required down payment for purchasing a $450,000 property in a county with a VA loan limit of $417,000 for a Veteran or Active Duty Service Member with full Entitlement available. $8,250 is a 1.83% down payment. Now that is a huge benefit for our Veterans. This is far superior to the conventional loan alternatives or even FHA loans.
When your bank tells you that you need to put down 10% or even 20% for a conventional loan, call us direct and go with a VA loan instead. You will be glad you called.
A quick note – our maximum VA Loan Amount is $1.5M. Many VA Lenders are capped at $417K, $625K, $729K , or $1m for VA loans. We fund VA Jumbo Loans up to $1.5M.
VanDyk Mortgage is a VA Direct Lender (since 1987) offering VA Loans such as VA purchase loans, VA Streamline Refinance, VA IRRRL, VA Refinance Loans, VA Jumbo purchase loans, VA Jumbo Refinance Loans, VA Jumbo Streamline Refinance loans, VA Jumbo IRRRL , VA Mortgages of all types.
We are a Direct Lender specializing in Government Loans. VanDyk Mortgage is a HUD Full Eagle FHA Direct Endorsement Underwriter, ie Direct Lender offering FHA Loans such as FHA Purchase loans, FHA Refinance, FHA Streamline Refinance, FHA 203K Streamline Rehab loans, FHA Jumbo, FHA Jumbo Purchase, FHA Jumbo Refinance, FHA Jumbo Streamline Refinance, FHA mortgages of all types. We offer FHA & VA loans in California, Indiana, Massachusetts, Virginia, Washington, Wyoming & More.