USDA RURAL LOANS

How do VA Jumbo Loans Work?

Here at Banner Mortgage we are often asked how VA jumbo loans work. With so many variables unique to the VA loan program, it’s important to understand how a VA jumbo loan works before deciding which type of VA loan for which to apply.

VA Jumbo Loans 101

Unlike traditional loans, offered to all civilians, VA loans are insured by the Department of Veterans Affairs. Thus the lender is guaranteed repayment on the loan, even if the borrower defaults. Therefore lenders are willing to make special concessions and provide looser restrictions on VA loans.

How do VA jumbo loans work? Put simply, a VA jumbo loan is a large mortgage loan reserved solely for veterans and active members of the US military. VA jumbo loans offer loan amounts at or above $417,000. These loans cap out at $1,094,625, or $1,500,000 in Alaska or Hawaii. If you are eligible for a VA jumbo loan, you will need to cover 25% of the loan amount that exceeds $417,000. In other words, if the home of your dream cost $600,000; your down payment will be $45,750 or 25% of $183,000. Considered one of the most enticing incentives offered to veterans and active duty military personnel, the VA jumbo loan is something to consider if you are in the market for a property.

VA Jumbo Loan Requirements

In addition to serving in the US military, you must meet relatively stringent credit score requirement to secure a VA jumbo loan. These highly sought after loans required a higher minimum credit score than traditional VA loans. If you are applying for a loan of $650,000 or less, you must have a FICO score of at least 720. If you are applying for a VA jumbo loan of $650,000 or more, you must have a FICO score of at least 740.

VA Jumbo Loan Refinancing Options

Yet another reason VA loans are so popular is the built-in refinancing options they offer. Unlike traditional loans, available to all civilians, VA loans offer up to a 90% refinancing limit. A VA Interest Rate Reduction Refinance Loan (IRRRL) lowers interest rates by refinancing an existing loan. This is a great option for those with an existing VA jumbo loan when interest rates fall.

How does a VA jumbo loan work? It’s really quite simple, if you are a veteran or active military personnel and you meet the credit scoring criteria outlined above, you can secure a VA jumbo loan. Should you choose to refinance, you can refinance as much as 90% of your loan amount!

Are you ready to apply for a VA jumbo loan? Here at Banner Mortgage, we are proud to serve the brave men and women of the United States armed forces and we are here to help you through every step of the VA loan application process.

 
 

VA Resources for Veterans in Colorado

Here at Banner Mortgage we are honored to have the opportunity to serve the brave men and women of the US armed forces. As one of Colorado’s most trusted loan providers, Banner Mortgage is a registered DBA of Universal Lending Corporation.  Specializing in VA loans, refinancing and VA Jumbo Loans, we have the distinct privilege of helping veterans and their families secure financing in their pursuit of the American dream. If you are interested in learning about VA resources for veterans in Colorado, we encourage you to take note. Each of the following resources is designed to help those who have bravely served our country.

Colorado VA Resources

Education

University of Denver

2101 S. University

The University of Denver, along with Comprehensive GI Bill and Military Assistance Counseling, provide connections to on and off-campus resources for veterans and their families. Working to help current and incoming students take advantage of the resources available to them through these programs, the University of Denver is a preferred provider of higher education for veterans in the state of Colorado.

The University of Denver celebrates the unique contributions veterans and active-duty service men and women bring to their campus. They provide support throughout the educational process, from enrollment to graduation and job placement. Learn more at http://www.du.edu/veterans.

VetEquity Corporation

2095 West 6th Avenue, Suite 102

The VetEquity Corporation assists Colorado Veterans with the resources required to start and grow a successful business. Providing mentors, training, business coaching, networking and general services to veterans in their program, VetEquity provides invaluable services to the veterans of Colorado. Learn more at www.coloradoveterans.org.

Activities

Adaptive Adventures

1315 Nelson St Lakewood, CO 80215 Unit 1

Adaptive Adventures provides free adventure trips to disabled veterans, adults and children as well as their families. Offering adventures in cycling, climbing, alpine and nordic skiing, snowboarding, kayaking, scuba, rafting and more, Adaptive Adventures is changing lives each and every day.  Learn more at www.adaptiveadventures.org.

Breckenridge Outdoor Education Center

PO Box 697, Breckenridge, CO 80443

The Breckenridge Outdoor Education Center offers free winter outdoor adventure retreats for recently wounded military personnel and veterans as well as their families. Breckenridge Outdoor Education Center covers the cost of lodging and all activities. Learn more at www.boec.org.

Finance

Rocky Mountain Human Services’ Military & Veteran Programs

4 S. Weber St., Colorado Springs, CO 80903
9900 E. llliff Avenue, Denver, CO 8023

Rocky Mountain Human Services’ Military & Veteran Programs provide a wide variety of services to active duty military personnel and veterans designed to help participants live active, fulfilling lives. Services include: help with easing the transition into civilian life, enhancing mental and physical health, reconnecting with loved ones and so much more. RMHS also provides assistance with job placement and readiness as well as peer mentoring. Learn more at https://www.rmhumanservices.org/program/military-veteran-programs.

There are many more VA resources for veterans in Colorado. If you, or a loved one, are eligible for VA benefits, we encourage you to take advantage of these and other programs. Are you ready to apply for a Va loan or a VA jumbo loan?

 
 

Credit Eligibility & USDA Loans

USDA Rural Loans or a USDA Loan is a great loan program funded by the government to help infill some rural areas in each state. While the properties that are considered USDA eligible will vary, and there is no exact formula to determine a property’s eligibility–what does remain is the less stringent qualification guidelines for those looking for a USDA loan

 

    • On time payments

    • Late payments and late those late payments are

    • How many revolving credit accounts are open

    • The proportion of balances to credit limits on revolving accounts

    • If your history includes any: collections, bankruptcies, judgements and/or liens


    Your credit score is a “snapshot” at a specific moment in time. Your scores can change with new actions and with the passage of time. For example, the farther in the past derogatory information occurs, the less impact it has on the credit score.

  • If your mid-credit score is below 640 don’t panic! In most cases, we are able to help our borrowers raise their credit scores following our counseling. This is not guaranteed for anyone, and you must work with an experienced Credit Counselor in order to ensure you will be able to rapidly improve your credit score for loan qualification purposes.

  • There are some basic steps that anyone can take to improve their credit quickly:

    • Make your monthly payments on time.

    • Keep balances on revolving accounts low.

    • Don’t apply for new credit unless it is absolutely necessary.

    In addition to these steps, we work with a company who specializes in credit counseling. Working with a company like this makes it much easier to remove inaccurate or incorrect information from your credit report that is negatively impacting your score. We work to quickly improve your credit using a program from Advantage Credit called Rescore Express. Companies like this are not able to serve the public directly and all work must be done through your Mortgage Loan Officer.

  • According to the Advantage Credit website, ReScore Express is:

    Rescore Express is Advantage Credit of Colorado’s rapid rescore program. It will correct incorrect information at the bureau level. With the proper documentation, the correct information will be sent to the bureaus. The bureaus will verify the document and update the account. The update will take about 3 business days after being submitted to the bureaus. (vs. the 2-3 months it usually takes) if the borrower disputes the information themselves.