VA Myth - VA loans are only available to $484K (or $417K, $424K, or $453K, or even $1m)
A common myth we hear with VA Loans is that they don't work for your area, the loan amounts are too low for your area, or that Sellers aren't accepting VA Offers. In the past this was true, but with VanDyk Mortgage, this is no longer true. Please see our VA Loan Limits page for details on your county limits.
The nationwide VA Loan Limit for 2019 is $484,350 (some counties qualify for higher VA Loan Limits)
VA Loan Amounts above $484,350 are called VA Jumbo Loans or VA High Balance Loans. While many counties in the country are limited to the $484,350 amount, that isn't the highest VA loan available for that county. The VA Loan Limit is basically the limit for a zero down payment VA Loan in that respective county.
VanDyk Mortgage offers VA loans up to $1,500,000 in all the states we serve to qualified Veterans. What changes is the amount of required home equity or down payment. Each case is unique.
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 put 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 $484,350 (such as Riverside, Fresno, or San Bernardino counties in California). You want to purchase a home that is $550,000 with a 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 $533,587, requiring just $16,413 down payment, or 2.98%.
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 $484,350) and multiply times 25% to reach your maximum entitlement and guaranty available ($484,350 x .25 = $121,087)
2. Take your purchase price and multiply times the minimum guaranty required. ($550,000 X .25 = $137,500) ** 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 ($137,500) and subtract the available guaranty and entitlement for you ($121,087) and it yields us $16,413.
$16,413 represents the minimum required down payment for purchasing a $550,000 property in a county with a VA loan limit of $484,350 for a Veteran or Active Duty Service Member with full Entitlement available. $16,413 is a 2.98% 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 more money down for your VA Loan, or suggests a conventional loan, Call VanDyk Mortgage and go with a VA loan instead. You will be glad you called.
Many VA Lenders cap their VA Loans at $417K, $424,100, $453,100, $650K, 729K, or $1m. We offer (and close) VA Jumbo Loans over $417,000, VA Jumbo Loans over $424,100, VA Jumbo Loans over $453,100, VA Jumbo Loans over $484,350, VA Jumbo Loans over $729,750, and VA Jumbo Loans over $1m (yes, VA High Balance Loans over $1,000,000).
>> Get Started here online on your VA Home Loan
>> Call Brian Skaar direct at 760-752-4480 / 866-900-2342 toll free to get started.
VanDyk Mortgage is a VA Direct Lender (since 1987) offering VA 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.