{"id":9325,"date":"2009-07-28T21:33:14","date_gmt":"2009-07-29T04:33:14","guid":{"rendered":"http:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/?p=9325"},"modified":"2009-07-28T21:33:14","modified_gmt":"2009-07-29T04:33:14","slug":"va-jumbo-mortgages-determining-the-down-payment","status":"publish","type":"post","link":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/9325\/va-jumbo-mortgages-determining-the-down-payment\/","title":{"rendered":"VA Jumbo Mortgages: Determining The Down Payment"},"content":{"rendered":"

Sean Purcell and I are really figuring VA-guaranteed\u00a0 jumbo loans<\/a>.\u00a0 We’re getting a steady stream of business from high-cost California counties.\u00a0 One of the common misconceptions is that VA loans are capped at the county loan limit, like FHA and conventional mortgages.\u00a0 I’m going to walk you through the formula to determine the required down payment and maximum loan amounts for VA jumbo home loans<\/a>.<\/p>\n

STEP ONE:<\/strong><\/p>\n

___Lesser of purchase price or appraised value +
\n<\/strong><\/p>\n

___Add the 100% financing VA funding fee =
\n<\/strong><\/p>\n

___Gross loan amount<\/strong><\/p>\n

STEP TWO:<\/strong><\/p>\n

___ VA county loan limit<\/a> * (.25) =<\/strong><\/p>\n

___ Veteran’s maximum entitlement * 4 =
\n<\/strong><\/p>\n

___ Maximum VA guaranty (including funding fee<\/a>)<\/strong><\/p>\n

STEP THREE: <\/strong><\/p>\n

___ Gross loan amount (from step one) * (.25) =
\n<\/strong><\/p>\n

___ Required Guaranty –<\/strong><\/p>\n

___ Veteran’s maximum entitlement (from step 2) =<\/strong><\/p>\n

___ Required down payment<\/strong><\/p>\n

STEP FOUR:<\/strong><\/p>\n

___ Purchase price –
\n<\/strong><\/p>\n

___ Required down payment (from step three) =<\/strong><\/p>\n

___ Base loan amount (before adding funding fee) +<\/strong><\/p>\n

___ Applicable LTV-adjusted VA funding fee<\/a> =<\/strong><\/p>\n

___ Total loan amount after down payment<\/strong><\/p><\/blockquote>\n

Let’s try a $650,000 purchase price in Maricopa County, where the county loan limit is $417,000, for a first-time VA loan user.<\/p>\n

STEP ONE:<\/p>\n

$650,000 (purchase price) +<\/p>\n

$13,975 (2.15% funding fee) =<\/p>\n

$663,975 (gross loan amount)<\/p>\n

STEP TWO:<\/p>\n

$417,000 county loan limit * (.25)=<\/p>\n

$104,250 (maximum entitlement) * 4 =<\/p>\n

$417,000 (maximum VA guaranty)<\/p>\n

STEP THREE:<\/p>\n

$663,975 (gross loan amount) * (.25) =<\/p>\n

$165,993 (required guaranty) –<\/p>\n

$104,250 (maximum entitlement) =<\/p>\n

$61,744 (required down payment)<\/p>\n

STEP FOUR:<\/p>\n

$650,000 (purchase price) –<\/p>\n

$61,744 (required down payment) =<\/p>\n

$588,256 (base loan amount) +<\/p>\n

$8823 (applicable LTV-adjusted funding fee) =<\/p>\n

$597,079 (total loan amount after down payment)<\/p>\n

Don’t be confused by the entitlement and loan amount; just follow the formula and any VA-approved underwriter will accept your figures<\/strong>.\u00a0 As you can see, the required down payment, for this example,\u00a0 is only 9.4%.\u00a0 I’d probably round it up to an even 10% down payment so that the funding fee would drop to 1.25% instead of 1.5%.\u00a0 Putting down an extra $3900 saves the veteran $1625 in the funding fee.<\/p>\n

Very few jumbo loan programs allow for a down payment of 10% with no mortgage insurance.\u00a0 This makes the VA-guaranteed jumbo mortgage<\/a> tough to beat.\u00a0 The first question you ask for\u00a0 any loan application should be…<\/p>\n

Did you serve <\/a>?<\/strong><\/p>\n

It could Read more<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

Sean Purcell and I are really figuring VA-guaranteed\u00a0 jumbo loans.\u00a0 We’re getting a steady stream of business from high-cost California counties.\u00a0 One of the common misconceptions is that VA loans are capped at the county loan limit, like FHA and conventional mortgages.\u00a0 I’m going to walk you through the formula to determine the required down […]<\/p>\n","protected":false},"author":15,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_crdt_document":"","jetpack_post_was_ever_published":false,"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[26],"tags":[],"class_list":{"0":"post-9325","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"hentry","6":"category-lending","8":"no-featured-image"},"jetpack_featured_media_url":"","jetpack_sharing_enabled":true,"jetpack-related-posts":[{"id":7456,"url":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/7456\/bloodhoundblog-radio-va-home-loan-tutorial-for-california-realtors\/","url_meta":{"origin":9325,"position":0},"title":"BloodhoundBlog Radio: VA Home Loan Tutorial For California REALTORS","author":"Brian Brady","date":"March 11, 2009","format":false,"excerpt":"I recorded this webinar on March 11, 2009. The AUDIO IS HERE and will open in a new window.\u00a0 Listen along and click through the links as I discuss them: The zero-down loan limits for California counties How a purchase price, above the VA loan limit, might not require a\u2026","rel":"","context":"In "Lending"","block_context":{"text":"Lending","link":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/category\/lending\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":4751,"url":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/4751\/va-and-fha-higher-loan-limit-extension-through-2011-the-main-street-bailout\/","url_meta":{"origin":9325,"position":1},"title":"VA and FHA Higher Loan Limit Extension Through 2011: The Main Street Bailout","author":"Brian Brady","date":"September 30, 2008","format":false,"excerpt":"We don't have a \"Main Street\" in Southern California; we have the US Route 101 (or CA State Highway #1). We call it the Coast Highway, the Pacific Coast Highway, or the PCH.\u00a0 When I think of a bailout plan for Main Street, I think of it for homes within\u2026","rel":"","context":"In "Lending"","block_context":{"text":"Lending","link":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/category\/lending\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":14833,"url":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/14833\/the-sky-is-falling-and-so-are-loan-limits\/","url_meta":{"origin":9325,"position":2},"title":"The Sky is Falling… and So Are Loan Limits","author":"Sean Purcell","date":"July 25, 2011","format":false,"excerpt":"The most recent loan limit in San Diego County has been $697,500, thus making it exceedingly difficult for those of us who toil away in the real estate salt mines of America's Finest City to keep beautiful San Diegans housed in the luxury to which they have become accustomed...","rel":"","context":"In "Big Mother"","block_context":{"text":"Big Mother","link":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/category\/big-mother\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":4812,"url":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/4812\/other-types-of-credit-may-be-feeling-the-crunch-but-home-mortgages-are-still-readily-available\/","url_meta":{"origin":9325,"position":3},"title":"Other types of credit may be feeling the crunch, but home mortgages are still readily available","author":"Greg Swann","date":"October 4, 2008","format":false,"excerpt":"This is my column for this week from the Arizona Republic (permanent link). \u00a0Other types of credit may be feeling the crunch, but home mortgages are still readily available Bad news about the economy is coming in from all directions, so you may be in the mood for some good\u2026","rel":"","context":"In "Lending"","block_context":{"text":"Lending","link":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/category\/lending\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":9921,"url":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/9921\/bloodhoundblog-radio-fhava-in-2010-with-tony-gallegos\/","url_meta":{"origin":9325,"position":4},"title":"BloodhoundBlog Radio: FHA\/VA in 2010 (with Tony Gallegos)","author":"Brian Brady","date":"October 1, 2009","format":false,"excerpt":"Wondering about the future of VA home loans and FHA mortgages?\u00a0 Listen to my interview with Bloodhound Blog contributor, Tony Gallegos.\u00a0 We discuss: San Diego County VA\u00a0mortgage statistics (the market share number is going to astound you)\u00a0 Why VA loans have the lowest default rate among all four major loan\u2026","rel":"","context":"In 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