How would you like to own a house with fast approval and minimal cash out? Any eligible veteran can enjoy the 25 per cent guarantee of the Department of Veterans Affairs for VA jumbo refinance program. For maximum benefits, you might have to check the government agency’s website for its High Cost Counties. To simplify the calculations of the amount you can avail, just multiply the amount of your full eligibility by four. So if you have a full eligibility of $250,000, you can get $1 million with zero down payment and full VA guarantee. As a rule of thumb, any loan bigger than $417,000 is classified as VA jumbo loan.
What if the house is expensive?
You won’t have to raise the initial cash out if the cost of your house does not exceed the $417,000 but what if the loan amount is more than that magic number? There are several scenarios that will happen. You will have to pay a down payment—computed as 25 per cent of the total cost exceeding $417,000. Then you will also have to shell out the funding fee, the amount of which to be determined by the total VA jumbo loans rate up until P1 million, which shall be paid in cash. As the numbers go up, so do the criteria. For loans exceeding $650,000, your credit score should be no less than 640.
The VA Loan Refinance is the most common loan type within the VA loan umbrella, and is officially known as an Interest Rate Reduction Refinance Loan (IRRRL) by the government.
Secure your future
In an economy where household budgets are spread too thin, some people who have served in the military are already facing hardships keeping their own homes. They can opt for VA streamline loans instead where you can negotiate to lower the mortgage interest terms of your house. If you haven’t done this, you are missing out on a great opportunity. Go visit the website of the Department of Veterans Affairs for more details. There is also an extensive library of service providers that will process your VA loans for you.
How about extra cash on the side?
Another type of VA streamline loan is the cash-out refinance program where you can actually take out cash from the value of your house. Working with loan officers who know what they are doing is crucial to how much you can refinance and how much money you can get. Make sure you work with reputable companies and look for that closeout fee.
Veteran Move - Using VA Jumbo Refinance to Secure that Dream