Affording a house out-of-pocket is not something attainable for most Americans. If that is news to you, you might be even more surprised to learn that almost 2/3 of all homeowners in the United States have a mortgage!
If you are in New Jersey and looking to finance a home, 7th Level Mortgage is the NJ mortgage broker for you.
Why? Unlike other brokers, we do not hide any vital information you need to get your family into a new home. If you do not believe that, keep reading and we will prove it to you with this one quick, easy, and informative article.
Prospective homeowners have a number of mortgage options available to them, but if you are a veteran—sometimes spouses, too—you have the extra advantage of being able to access a VA home loan, sometimes called a VA jumbo loan or VA mortgage.
2020 brings important changes to the program. Here is all you need to know.
What Is the VA Jumbo Loan Program?
The U.S. government works its service members hard, but at the end of the day, it is here for its veterans with a long list of VA benefits available to you.
One of those is the VA home loan program—and it is a big benefit!
Basic Differences Between VA Home Loans and Regular Mortgages
You might be familiar with the features of a traditional mortgage, but there are some basic differences between the two programs. These are the features of VA home loans that set them apart.
- There is no down payment required.
- Your loan is backed by the U.S. federal government.
- Move whenever you want without paying a prepayment penalty.
- Lower closing costs.
- You do not have to have mortgage insurance.
New Limits in 2020
So, what is the new VA loan max amount in 2020? Trick question: There is no limit! This is limited to Veterans who have full VA home loan entitlements. County limits still apply to Veterans who have used and not restored their VA home loan entitlement to purchase, refi or construct, and that limit is $144,000.00.
Does that sound too good to be true? Shockingly, it is not! As of this year, the VA truly and honestly removed county loan limits on their home loans with the exceptions listed above.
There are, of course, a couple of qualifiers—so do not get too excited.
- As with any other mortgage, you still have to qualify for the amount based on creditworthiness.
- Your lender can cap the amount you are able to borrow.
Additionally, you are subject to loan limits if you have another VA loan originated before 2020, or have defaulted on a loan.
All that said, those downsides are not nearly as limiting as they are when looking at a typical mortgage. The credit requirements for VA jumbo loans are not as strict as the requirements for most traditional mortgages, they are easier to qualify for.
For example, consider the last scenario we described. For many home loans, being in default means you simply will not qualify—and definitely not for FHA loans, some of the easiest loans to qualify for.
Sadly, people in default who do not qualify for another program, like the VA loans, have to wait to get out of default to buy, which can be tricky. The VA helps make sure vets are not in that situation.
On top of that, while lenders have the choice to impose limits, you can generally avoid them because you can choose from a selection of lenders. For most borrowers, if your credit is good enough, there truly is no limit to how much you can take out. With a VA jumbo loan, you can finance the house of your dreams!
Qualifying for a VA Mortgage
Now that you know the details of VA home loans in 2020, are you curious about how you can qualify for one? Here is the lowdown.
Who Is Eligible?
These are the main groups of people who are eligible:
- Active duty service members
- Veterans, except those who have been dishonorably discharged.
- Surviving family members—sometimes
If you are not sure where you stand, then consider these particulars:
- Have you served active duty at least 181 days during peacetime?
- Have you served active duty at least 90 days during wartime?
- Have you served at least six years in the Army Reserve?
- Have you served at least six years in the National Guard?
- Was your spouse killed in the line of duty, and you have not remarried?
If you can answer “Yes” to at least one of those questions, and were not dishonorably discharged, then congratulations! You are eligible for a VA jumbo loan.
Getting Your VA Mortgage
To get a VA mortgage, the first thing you need to do is get a Certificate of Eligibility, or COE, from the VA. This is easy—most folks can do it online.
Next, head to your local trusted broker just like you would for any other home loan. Keep in mind that some brokers do have ties only with lenders that do not offer these loans, so a little research makes your life easier.
Although the VA backs the loan, you have multiple lenders to choose from, which means you can have either a fixed or a variable interest rate.
You will not have to pay mortgage insurance unless your lender requires it, and you will pay a funding fee.
Lenders judge credit differently, but there is no VA-mandated minimum. Often, you can get a VA loan with a score in the mid-to-low 600s.
The best part? This benefit never expires.
Your NJ Mortgage Broker Is Here to Help
The VA jumbo loan is a great benefit that makes it easier for you to get a house.
7th Level Mortgage is honored to be a preferred NJ mortgage broker and, happily, we are able to provide our services to homebuyers in states other than New Jersey, too! If you are in New Jersey, New York, Florida, Georgia, Delaware, Pennsylvania, Virginia, Maryland, or Colorado, we can get you set up with a VA home loan.
Get your VA home loan quote with us today, and you will find yourself in a new home before you know it!
7th Level Mortgage is a leading one-stop mortgage company providing deeply informed, custom-tailored assistance with every phase of each mortgage transaction. If you are searching for a home loan in New Jersey, Pennsylvania, Virginia, Delaware, Maryland, New York, or Florida, please contact us today so that we can determine the best Mortgage Lender to place your loan with and get you the best possible rate and program.