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The VA
Jumbo Loan
One of the most common myths in the mortgage
industry is that the VA loan limit is $417,000, untouched by the so called
"Stimulus" package. However, this is not true. Loan Amounts can
exceed $417,000 and here's how:
The Veterans Administration (VA) "guarantees"
25% of the loan to Ginnie Mae - the ultimate purchaser of the loan.
Remember the lender services the loan. So if a Veteran purchased a home
for $417,000 the guarantee amount would be $104,250 (25% of $417,000). The
Veteran in this scenario would receive a no-money down mortgage.
If a Veteran purchased a home for $650,000,
the maximum loan amount would be calculated as follows:
Sales Price: $550,000 minus $417,000 =
$133,000 divided by 4 = $33,250, the minimum down payment. In other words the
Veteran must make the 25% guarantee to Ginnie Mae over the $417,000 loan limit.
In this case the Veteran's minimum down payment is $33,250 or approximately
6.05%. Remember, there are not many Jumbo programs left at 5% down with
competitive mortgage rates. This makes VA a very nice option.
Although the Veteran pays a VA Funding Fee,
it can be financed into the mortgage and there is no monthly PMI/MIP on a VA
loan. This scenario assumed full-entitlement by the Veteran.
Refinances have additional restrictions,
full-entitlement is limited to $36,000, and VA's maximum refinance is limited to
90% Loan-to-Value (LTV) in non-rate reduction refinance cases.
Call a 1st Mortgage of Illinois Loan Officer
today, our Loan Officers are thinking out of the box for your family's financing
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Loan Approval
Utilizing our Automated Underwriting (AU) sources its' as easy as 123, and a loan approval is
usually issued in under 10 minutes! A loan approval is valued much
more than a pre-qualification letter. It is a "written commitment to
make a mortgage loan" short of the appraisal, the language contained in the
mortgage constringency clause of any residential sales contract.
Remember, just ask in advance to review a Good Faith Estimate,
Truth-in-Lending, Loan Brokerage Agreement, HUD-1 or any of our disclosures, we
will be more than happy to comply.
All of our Loan
Officers have Permanent Licenses issued by the Corresponding State Agency
Call a 1st Mortgage of Illinois Loan Officer Today
630-924-1100
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