Are You Eligible For A VA Jumbo Loan?
VA loans are a perfect option for borrowers who do not have sufficient funds to put down as down payment. These loans are provided to military veterans along with active military members and are guaranteed by the Department of Veteran Affairs but are provided by private lenders. These VA loans however, do not exceed the amount of $424,100 in most counties — but if one requires a loan amount higher than that, they have the option to apply for VA jumbo loans.
VA jumbo loans are also known as non-conforming loans and exceed the conventional loan limits of $424,100. But can you apply for a VA jumbo loan?
In order to be eligible for VA jumbo loans, the following criteria need to be met.
1. Credit — a minimum credit score of 700 or higher is required, along with a good credit history in order to be eligible for a VA jumbo loan.
2. Payment Reserves — when it comes down to jumbo loans, you may need to have a certain amount of reserves in the bank that is at your disposal after closing in on your mortgage and paid for the down payment along with your closing costs.
3. Documents — Documents such as your tax returns of two years, your bank statement along with other documents are essential if you want your VA jumbo loan application to be approved.
4. Property Type — The property that you want to mortgage must be a single-family home or a townhome/approved condo. Other properties, vacant land and commercial buildings are not covered by this loan.
Joan Gallardo with his 18+ years of experience as Senior Loan Officer is a wealth of knowledge dealing with first time buyer home loans. Through his articles, you can get to know various first time buyer home loans along with information on applying for different loan programs, eligibility criteria and benefits.