VA Myth busted: VA Loans are available over VA Loan Limit for your County

VA Myth busted: VA Loans are available over VA Loan Limit for your County.

In concert with higher VA County Loan Limits, this rebuffs a common myth about VA Loans that they don’t work for your area, or the loan amounts are too low for your area. In the past this was true, but recent changes have changed the picture. Please see our VA Loan Limits pages for details on your county limits.

California VA Loan Limits

The loan limits above $453,100 are called VA Jumbo Loans or VA High Balance Loans. While many counties in the country are limited to the $453,100 amount, that isn’t the highest VA loan available for that particular county.

VanDyk Mortgage offers VA loans up to $1,500,00 in all the states we serve. What changes is the amount of required home equity or down payment. Each case is unique.  We offer VA Loans over $453K,  VA loans over  $679,650,  VA Loans over $650K,  VA loans over $700K and VA loans over $1,000,000 ,  in fact, we offer VA Loans up to $1.5M.   You will have to have the qualifications and appropriate Entitlement and Down-payment or Equity to reach the VA requirements, but this loan usually beats all others in total benefit.

In counties where the loan limit is lower than your purchase price or refinance loan amount, you may have to have equity (for a VA Jumbo refinance) or make a down payment (for a VA Jumbo Purchase).

So what is the benefit of using a VA loan in this scenario?    – Lower down payments than conventional alternatives, fixed rates, no Mortgage Insurance, lower equity requirements for Refinances.   Let’s say you live in a county where the VA loan limit is $453,100 (such as Riverside or San Bernardino counties in California).   You want to purchase a home that is $500,000 with as little of down payment possible.   Assume that you have full VA eligibility & fully restored Entitlement.    VanDyk Mortgage will allow a VA loan in this scenario up to $488,275,  requiring just $11,725 down payment, or 2.345%.

The goal of the VA calculation is the reach a guarantee figure of 25% of the loan amount.  This can be a combination of the Entitlement and a down payment.

Here is the math to figure this out:

1.  Take your county loan limit    (in this case $453,100) and multiply times 25% to reach your maximum entitlement and guaranty available ($453,100 x .25 = $113,275)

2.   Take your purchase price and multiply times the minimum guaranty required.   ($500,000 X .25 = $125,000) ** since this figure is higher than your maximum guaranty and entitlement from #1, we must now figure out how to handle the shortage.

3.   Take #2, the Minimum required guaranty ($125,000) and subtract the available guaranty and entitlement for you ($113,275) and it yields us $11,725.

$11,725 represents the required down payment for purchasing a $500,000 property in a county with a VA loan limit of $453,100 for a Veteran or Active Duty Service Member with full Entitlement available.    $11,725 is a 2.345% down payment.    Now that is a huge benefit for our Veterans.

This is far superior to the conventional loan alternatives or even FHA loans. So if your bank tells you that you need to put down 10% for a conventional loan, Call VanDyk Mortgage and go with a VA loan instead. You will be glad you called.

VanDyk Mortgage is a Direct Lender (since 1987) making VA Loans and VA Jumbo Loans such as VA purchase loans, VA Streamline Refinance, VA IRRRL, VA Refinance Loans, VA Jumbo purchase loans, VA Jumbo Refinance Loans, VA Jumbo Streamline Refinance loans, VA Jumbo IRRRL , VA Mortgages of all types. As a Government Direct Lender, VanDyk Mortgage is also a HUD Full Eagle FHA Direct Endorsement Underwriter, ie FHA Direct Lender offering FHA Loans such as FHA Purchase loans, FHA Refinance, FHA Streamline Refinance, FHA 203K Streamline Rehab loans, FHA Jumbo, FHA Jumbo Purchase, FHA Jumbo Refinance, FHA Jumbo Streamline Refinance, FHA mortgages of all types. We offer FHA & VA loans in California, Washington, & More. Visit us to get started or just find out more.

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