If you’re looking at buying the home of your dreams – and the price reflects it – then an Idaho VA jumbo mortgage loan may very well be the best option for your mortgage.
In most veteran loan scenarios, the VA guarantees up to 25% of the total amount of the loan up to the Idaho Veterans Administration loan limit in your county – which, in much of the US, is $417,000.
But what happens when the value of the loan exceeds your county loan limit?
This is where an Idaho VA jumbo mortgage loan come into the picture.
For the purposes of this example, let’s say that you live in a county where the Veterans Administration loan limit is indeed $417,000. You find the perfect house for you and your family, and it’s selling for $517,000.
You decide that you would like to use your hard-earned veteran benefits to take out an Idaho VA mortgage loan!
So, the Veterans Administration guarantees $104,250 of your loan (with $104,250 being 25% of $417,000). Yet what happens with the remaining $100,000 of the loan?
Simple. The U.S. Department of Veterans Affairs mandates that on jumbo loans above the county loan limit, the borrower put down 25% of the difference between the cost of the loan and the applicable county VA loan limit.
Continuing on with our Idaho jumbo loan example from above, 25% of $100,000 ($25,000) would be required as a down payment, and the Veterans Administration would guarantee 25% of $417,000 ($104,250).
Not bad at all! In this example you’re buying your $517,000 dream home for only $25,000 down in addition to the required closing costs.
The real value of an Idaho VA jumbo mortgage loan is apparent when you compare and contrast it to the standard down payment requirement of an Idaho conventional mortgage, which is typically 20% to avoid paying private mortgage insurance.
This means that for the example $517,000 house, a conventional loan down payment would be $103,400 while a VA loan down payment would only be $25,000. That’s less than one quarter of the down payment required for the conventional loan in this scenario!
Please keep in mind while house shopping that Veterans Administration county loan limits vary widely throughout the country and will be higher in areas with especially high property values. Once again, the standard VA county loan limit is $417,000, but it’s smart to check with your local VA mortgage agent prior to looking at houses.
For example, as of 2011 the VA county loan limit for Marin County is $1,000,000! San Francisco County has a loan limit of $1,000,000 as well.
To check what the VA county loan limits are for each county in the United States, you can visit the U.S. Department of Veterans Affairs at their loan limit website. For counties that are not listed on the website, the official VA loan limit is automatically set at $417,000.
Why is there such as large difference in county loan limits throughout the nation? In short, because the various housing markets across the country vary greatly.
In San Francisco a small single-family house may sell for $1,000,000, while in other places you might be able to find a similar house for $100,000!
If you are in Idaho and in need of a substantial home loan, an Idaho VA jumbo Mortgage loan is certainly worth checking out.
A Few Frequently Asked Idaho VA Mortgage Questions:
Q: How do I apply for a VA guaranteed loan?
A: You can apply for a VA loan with my company who is a mortgage lender that participates in the VA home loan program. At some point you will need to get a Certificate of Eligibility from VA to prove to the lender that you are eligible for a VA loan.
Q: How do I get a Certificate of Eligibility?
A: Complete a VA Form 26-1880, Request for a Certificate of Eligibility. You can apply for a Certificate of Eligibility by submitting a completed VA Form 26-1880, Request for a Certificate of Eligibility for Home Loan Benefits, to the Winston-Salem Eligibility Center, along with proof of military service.
Q: Can my lender get my Certificate of Eligibility for me?
A: Yes, it’s called Web LGY. Most lenders have access to the Web LGY system. This internet based application can establish eligibility and issue an online Certificate of Eligibility in a matter of seconds. Not all cases can be processed through Web LGY – only those for which VA has sufficient data in our records.