Jumbo Purchases using VA Guaranteed Home Loan
It is possible to purchase a home in the Eugene or Springfield area that is priced over $500,000 with less than 20 per cent down, but you need to be a Veteran. Most often we think of VA Guaranteed Home Loan as not requiring a down payment and that is true if the purchase price/loan amount is below $417,000 in Eugene/Springfield, Lane County Oregon. However, if you are purchasing a home for over $417,000 in our area, all of a sudden a down payment is required. Mortgage insurance for conventional jumbo loans is nearly non existant.
The down payment requirement for loans over the $417,000 amount is equal to 25% for the amount over $417,000. This means that if you are buying a home for $517,000, the down payment requirement would be $25,000 (25% X $100,000). Even with the funding fee, this is still a cheaper loan than trying to get jumbo (loan over $417,000) financing which is not available with 5% down. However, to make the deal even sweeter, if you would put $25,850 down on the purchase, the funding fee is also reduced. The VA Guaranteed Home Loan is, to my thinking, one of the best benefits we have for our veterans.
VA loans have a lot of advantages, one often overlooked is for financing jumbo loans with minimal down payments. In a market place where large homes are not moving quickly, now may be the time to make the move to the dream home using a VA Guaranteed Home Loan. Give me (Fred Chamberlin) a call at 541-342-7576/541-221-3455 cell or e-mail me and let’s discuss your possibilities. Alpine Mortgage Planning is located at 1200 Executive Pkwy., Ste. 100, Eugene OR 97401.
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