VA Jumbo Mortgages Help Finance Million-Dollar LA Properties

I stated at the beginning of the year that VA jumbo mortgages could very well be the product that helped stabilize the middle-market ($500,000- $1,000,000) in Los Angeles real estate.  Let me share with you how they work and give you some cases where we were able to fund loans this year.

The current zero-down VA jumbo mortgage limit is $737,500.  This means that a qualified veteran is eligible to purchase a a home, up to that limit, with no down payment required.  That's pretty straightforward.  Did you know that VA loans go up to $1,080,000 with a down payment?  The down payment requirement for a VA jumbo mortgage is essentially 25% of the difference between the purchase price and the county loan limit ($737,500 in Los Angeles County).  

Here are some examples of funded VA loans, in LA county, this year:

• We funded a purchase for $1,080,000 in Rancho Palos Verdes.  The down payment requirement, combined with closing costs, was less than $100,000.  The rate was 6% (which is typical for jumbo mortgages). What made this transaction unique was that the loan amount was 92% of the purchase price and VA loans have no mortgage insurance.
• We funded a three-unit transaction for about $700,000 with no down-payment requirement, in Los Angeles. That rate was 5.5% for a 30-year, fixed rate loan.
• One veteran and his wife bought a townhouse in Redondo Beach for $800,000.  Their downpayment and closing costs were just under $40,000.  The rate was 5.75% for a 30-year fixed rate loan.

Most veterans who served after 1980 are eligible for the VA home loan benefit.  While eligibility doesn't guarantee approval, if the veteran's credit and income supports the loan, a VA jumbo mortgage might very well be the loan solution that allows for a low down payment for a seven-figure purchase price.

Many Californians are eligible for VA home loan benefits.  Some of the more famous veterans include Easy Rider Dennis Hopper, Kirk Douglas, Sidney Poitier, Chuck Norris, ER's Troy Evans, and Pat Sajac.  All are eligible for a VA home loan (although I doubt they need one).

Comments

[cj]

Brian! A pleasure to see you!

[Brian Brady]

I go into hibernation but NELA Live is my first (local) internet home. Without NELA Live I would have never started Mortgage Rates Report.