Houston, TX (PRWEB) December 05, 2012
Security America Mortgage, Inc. is proud to announce enhancements to its VA Jumbo Loan program. These program enhancements now allow Security America Mortgage, Inc. to make VA Jumbo Loans up to $1,000,000.
Recent changes in rules set by the Department of Veterans Affairs have led to VA mortgage banks granting more flexibility to the consumer.
“The VA Jumbo Loan program is easily the most underutilized veteran home loan product out there. Most people regardless of if they are a veteran or not usually just look to their bank for jumbo loans, with our recent increase to a maximum of $1,000,000, we hope to help veterans in our local community as well as those in the higher cost markets maximize their VA home loan benefits,” said Garrett Puckett, CEO of Security America Mortgage, Inc.
Many veterans have already taken advantage of the VA loan. With relaxed qualification standards and more flexibility, it is proven to be the right choice for many to purchase and refinance their homes through this program. However, in most counties, the conforming loan limit with no money down is $417,000. When your home costs more than this, the solution is the VA Jumbo Loan.
A VA jumbo loan is any VA loan greater than $417,000. Qualifying veterans can apply to purchase or refinance their home for up to a value of $1,000,000 through this type of loan. The VA Jumbo mortgage asks the veteran to make a down payment of 25% on any amount over the limit of $417,000.
VA Jumbo Loans prove useful for veterans and military personnel because the loan offers more flexible requirements and higher loan amounts than its conventional cousin. Contrary to popular belief, the Department of Veterans Affairs (VA) does not write the mortgages. Instead, the VA insures the loans that are written by banks and mortgage companies. Financing (or refinancing) options with VA loans are only available for veterans and active members of the U.S. Military (and spouses – even widows, as long as they don’t remarry).
For example, imagine you are a veteran and the home you intend to purchase is $650,000. In order to find out the down payment you would need, simply start by subtracting the conforming loan limit ($417,000) from the purchase price, which equals $233,000. Multiply this amount by 25%, which equals $58,250. This would be the down payment. This works out to about a 9% down payment. That’s less than the standard down payment on most homes. The VA program is hard to compare to a conventional loan when you look at it from this point of view.
VA Jumbo Loans require a higher credit score than the usual VA loans due to the high loan amounts. For loans under $650,000, borrowers must have a minimum FICO score of 720. If they are borrowing over $650,000, the credit requirement is increased to a minimum of 740 FICO.
While 100% financing is limited on VA Jumbo Loans, qualified veterans can still secure financing with smaller down payments and more flexible lending guidelines without having to carry mortgage insurance.
VA Jumbo loans in Houston are only available to those that qualify for VA loans. VA Jumbo Loans have all of the benefits of a VA loan, plus the added flexibility to obtain a larger loan amount if that is what the consumer needs.
Security America Mortgage, Inc. is a VA approved mortgage bank offering VA Home Loans in Houston and in 12 states throughout the country.