The Jumbo VA loan enables members of the military to provide a befitting shelter for themselves and family members. You will learn how to buy your dream property with a Jumbo VA loan in this article.
Just like most countries across the globe, servicemen, veterans, and other members of the military are highly regarded in America.
Why Jumbo VA Loans?
VA loans are administered by the Department of Veteran Affairs in order to enable members of the military to buy a home across the country. These loans are insured by Veteran Affairs, and they attract less stringent conditions associated with other mortgage financing options.
According to the Veterans Benefits Improvement Act of 2008, VA loans begin at $417,000 on the average. Veterans can also access up to $1.5million if they reside or decide to settle in Hawaii or Alaska. The only applicable limitation is that eligible borrowers can get more than $417,000 by covering 25% of the excess.
Here are the 5 Ways to explore a Jumbo VA Loan:
1. Use the No Down-Payment Option
Even if you are not able to afford a down payment, you are still eligible to apply for a Jumbo VA loan as a veteran. As a first time applicant, you will pay a 2.15 % fee on the expected loan if you are not making a down payment. A fee of 1.25% of the loan amount applies if you are able to afford a 10% deposit as shown on the funding fee table.
The terms of application for a Jumbo VA loan might differ depending on the area of service of the applicant. Members of the National Guard and other Reservists have additional qualifying requirements for a Jumbo VA loan. They are expected to pay an extra quarter of 1 percent more in fees than those on active duty.
There is a waiver on fees payable for vets who are on disability compensation. On the other hand, second-time users of VA loans without down payment have to pay 3.3 % of the expected loan amount.
2. Use the Cover for Poor Credit History
Service members or veterans who have a poor credit history are granted a leeway with the insurance scheme operated by the VA. Anyone with a poor credit history can discuss with a VA counselor to explore available options for home financing. The home financing options for veterans ensures that those defaulting on existing loans can be considered for a Jumbo VA loan.
To apply for Jumbo VA loan, a military member must have put in at least six months during a call of duty. Members of the National Guard and other Reservists qualify after six years of active service. Reservists on call of duty qualify after 181 days, and in 90 days during a war.
3. Use the Foreclosure /Bankruptcy Exemption
Veterans enjoy a provision that enables them to apply for a home loan benefit after two years or less of foreclosure or bankruptcy. In some cases, an application can be made for a Jumbo VA loan after a year of bankruptcy.
The VA incentive for bankrupt veterans takes into consideration the sacrifice they made for the country. As a result, while other commercial loans might not provide similar opportunities, a Jumbo VA loan is structured differently. You have a chance to own a home as a serviceman even if you have suffered a foreclosure.
4. The Window for Spouses and Families of Veterans
When military members die in active service or suffer disability, their family members become eligible for a Jumbo VA loan. In this way, the loved ones of military personnel who died or got incapacitated in active service are not left without shelter.
The family members of military men are allowed to enjoy the benefit of a Jumbo VA loan since they lost their loved ones in active service.
5. No Mortgage Insurance
Borrowers who use a low-interest and other conventional loans pay mortgage insurance when making a down payment less than 20 percent of the expected loan.
For Jumbo VA loans, the requirement for mortgage insurance is waived as a result of VA policies. This is a huge saving that you should take advantage of as you prepare to buy your dream home.
You can enjoy the perks that come with your military service by applying for a Jumbo VA loan. Irrespective of a poor credit score history, the VA has all provisions sorted out so that you can buy a befitting home.