In 2020, the Veterans Administration has recently done away with down payments for VA Jumbo loans. In the past, for Jumbo loans, those up to $510,400 in most US counties, the veteran would make a down payment that was a certain percentage amount based on their guarantee available from the VA.
This is no longer required as long as a veteran has all of his or her eligibility restored and does not have any other VA loans active at the time. So, the bottom line is whether a veteran is buying a home for $150,000 or one priced at more than $1,000,000, they are not required to put down a down payment, no matter the loan size, if they have all their eligibility intact.
Also, a veteran can use their eligibility subsequent times as long as all prior loans are paid off. Remember a veteran also does not pay monthly mortgage insurance no matter the loan to value ratio, but they do have a funding fee. That can vary depending on whether it is a first time use at 1.4% or subsequent use at 3.6%. However, if a veteran is receiving 10% or more in disability payments from the VA, that funding fee is waived.
There are many intricacies to VA mortgage loans, and we’re here to help. If you’re a veteran and have any questions about what options are available, Indigo Mortgage is a great resource for the veteran to call.