As many of you know, the Veterans Administration (VA) has helped provide 0% down financing to the brave men and women who have sacrificed to serve our country. What you may not know is that VA provides jumbo financing as well, often with less down payment required than normal jumbo financing requires, at rates typically lower than jumbo as well!
Assuming the Veteran has their full entitlement at their disposal, their down payment would be calculated by taking the purchase price, subtracting the conforming loan amount limit (currently $417K for a one-unit property) and multiplying that by 25%. For example, if the purchase price is $650,000:
($650,000 - $417,000) x 25% = $58,250 down payment required.
So the next time you have a jumbo client, make sure to check and see if they are a Veteran…if so, you can increase their purchasing power through the small down payment and low rates of a VA jumbo loan!
For any further questions, contact your Directors Mortgage Senior Mortgage Specialist!