Time for an update on options for Veterans Administration loans. First, the VA did away with down payments for VA Jumbo loans, those above $548,250. In the past, for Jumbo loans, the veteran was required to put down a certain percentage amount based on their guarantee available from the VA.
This is no longer required, as long as the veteran has all of his or her eligibility restored and does not have any other VA loans active at the time.
So, whether a veteran is buying a home for $150,000 or a home for over $1,000,000, they are not required to make 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 have been paid off. Remember with a VA loan, a veteran does not have a monthly mortgage insurance premium, no matter the loan-to-value ratio, but they do have a funding fee which can vary depending on whether it is a first-time use at 1.4% or a subsequent use at 3.6%. If a veteran is receiving 10% or more in disability payments from the VA, that funding fee is waived.
The VA loan programs have many criteria, so if you’re a veteran and you have any questions about what options are available, Indigo Mortgage is a great resource to call. And, thank you for your service.