VA Loans: 5 Ways You Can Buy Your Dream Home With A Jumbo VA Loan
Buying a house is one of the biggest financial decisions a person can make in a lifetime. Not only is it a hefty investment in terms of the amount of money that you need to shell out, but it’s also going to define where and how you’re going to live for the next years. If you’ve worked in military service, here’s some good news for you: Getting your dream home is possible through VA loans!
Overview on VA Loans
People who have served in the military may have a bit of difficulty returning to their regular lives. Aside from having to handle the psychological ramifications of going into active duty, some veterans end up struggling in their finances. As a result, many of them incur a huge amount of debt.
VA loan gives veterans and people in active service the opportunity to buy a residential property at more comfortable rates than other types of home loans. A standard VA loan allows lending up to $453,100.
If you are looking to acquire a larger home, a jumbo VA loan may be right for you. This type of VA loan can offer more than the maximum standard loan amount, even reaching more than $1 million.
5 Ways A Jumbo VA Loan Can Finance Your Home
If you’re a veteran and you still haven’t considered taking out a loan for home financing, here are five reasons to convince you otherwise:
- Less strict loan requirements
Most home financing options require a credit score of 650-700, but VA loans may be taken out for roughly 620. Aside from this, VA loans are more lenient in terms of debt-to-income ratio.
In other words, veterans can still apply for a VA loan despite having an existing debt or a low credit score. This will definitely help a lot of people who have gone through active military service, since many of them struggle with their finances as soon as they return to their regular lives.
- No need for down payment
If there’s one benefit of VA loans that you will enjoy, this is definitely it. Most home purchases require a significant amount of down payment, but a VA loan does away with that hurdle. Having zero down payment encourages more veterans to buy their own residential property.
Of course, you need to be careful about the “no down payment” statement, because some people misconstrue it as not paying for anything else at the beginning of the purchase.
Some expenditure will still be incurred, such as closing costs and an escrow deposit. The latter will be refunded to the borrower after closing the sale.
- Waived mortgage insurance
Most private mortgage insurance (PMI) policies run around $200 a month, which could hurt anyone’s pockets. With VA loans, this PMI expense is waived altogether.
- Lower expense for closing
Closing costs in purchasing a home are necessary to cover the credit report, appraisal, survey, recording fee, and more. However, VA loan borrowers are only required to pay up to 1% for closing expenses.
This significantly reduces upfront costs, which is helpful for veterans eager to buy a home soon.
- Leniency in appraisal
Due to the special design of VA loans, appraisers may be requested to adjust the property valuation. This step ensures that real estate agents, lenders, and buyers are satisfied with the appraised home value.
Veterans and those still in active duty deserve as much help as they can get, especially in terms of purchasing a home. With a jumbo VA loan, owning a home becomes a lot easier for them.
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Category: Loans
We need to buy a larger home now. Nice write up. Jumbo VA Loan is good.