VA Jumbo Mortgage Arizona

VA Jumbo Home Loan Phoenix

Veterans that are shopping in the Arizona JUMBO mortgage market have access to one of the best kept JUMBO home loan secrets (Check out VA Official Website).  VA offers Phoenix veterans a mortgage option that allows them to navigate the Sea of $424,100 plus mortgages with ease.  A standard VA loan stops at the maximum conforming conventional loan limit of $424,100 in Maricopa County.  However, VA has designed a home loan product that allows veterans to still take advantage of the low down payment option they are famous for AND borrow well over the $424,100 limit.  This secret weapon is called a VA Jumbo or VA High Balance Loan.

Arizona VA JUMBO High Balance Home Loan 

Once a veteran’s loan amount exceeds $424,100 they can no longer get away with 0% down.  However, VA Jumbo loans still allow the veteran to put much less money down than the Jumbo loan products that are currently available (many of which require between 10% and 20% down).   Once a VA borrower has surpassed the $424,100 loan amount VA requires the veteran make a down payment equal to 25% of the difference between their purchase price and $424,100.

Let’s look at an example:

Imagine Joe Veteran is buying a new Arizona home for $600k and wants to limit his down payment using a VA Jumbo mortgage.  Here is how his down payment and loan amount would be calculated:

Step 1: Determine what portion of the purchase price Joe must make a down payment on:
$600k (purch price) – $417k (max conforming loan) = $183k (portion Joe Veteran must make a down payment on)

Step 2: Determine veteran’s down payment:
$183k (portion Joe Veteran must make down payment on) x’s 25% (VA Jumbo down payment factor) = $45,750 (VA Jumbo down payment required)

The effective down payment percentage in this case for the veteran is 7.6%!  This is much MUCH lower than many if not all Arizona Jumbo loan down payment requirements.  What is even better is that even though Joe is putting less than 20% down he will not have to pay monthly mortgage insurance as VA does not charge monthly mortgage insurance.

How High Does VA Jumbo Loan Go?

Based on standard VA Jumbo guidelines, a veteran may go up to a max loan amount of $700k including applicable VA funding fees.  If an exception is granted by underwriting a veteran may borrow up to $1.5 million including applicable VA funding fees using a VA Jumbo mortgage.

What Can a VA Jumbo Loan be Used for?

A VA Jumbo mortgage can be used for:

1. Purchases: maximum loan to value is 100% and the minimum score required is 620

2. Rate and Term Refinances: maximum loan to value is 90% and the minimum credit score required is 620 (700 minimum credit score over loan amounts of $1.0 million)

3. Cash Out Refinances: maximum loan to value is 90% and the minimum credit score required is 640 (660 minimum credit score requires for loan amounts
between $700k and $1.0 million and 700 minimum credit score is required for loan amounts greater than $1.0 million and $1.5 million)

Bottom line, veterans who have always had access to one of the best mortgages in the market in a standard VA loan now also have access to an outstanding Arizona VA Jumbo loan.  If you have any questions about your ability to qualify for a VA Jumbo loan please call or email me today.

You can Apply Now

By Jeremy House

 

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