Section 5: VA Jumbo Streamline Loans
VA Jumbo Streamline Loans
New Veteran affairs Guidelines will insure new increased loan amounts based on your county and state. That means you can take advantage of new maximum loan limits for VA loans. High balance VA loans are extremely popular with first time home buyers. In general, VA Jumbo Streamline Loans refinance is a program that allows homeowners with VA-backed mortgages to refinance with less time, hassle and paperwork. With a streamline refinance, you don't need to go through the VA appraisal process again, since the VA has already valued the property. The streamline program is only available to homeowners who already have VA loans, but that doesn't mean you have to refinance with your existing lender. VA loan requirements and fees may vary by lender.
VA Jumbo Streamline Loan Requirements
VA home loans work like this: Your Orbit Home Loan mortgage broker (Mortgage Banker) works on your behalf to qualify you with the most competitive lenders in the nation. VA home mortgages are typically lent out with 15- or 30-year repayment periods; the one that’s right for you depends on your personal finances, your income, and the interest rate you can secure. Once you are qualified, completed the process and have purchased the property your lender will sell your loan to U.S. Department of Veterans Affairs, and they will now function as the servicer of your loan and will be responsible for collecting your payments. There is a possibility that your servicer may change so do not worry if that happens, it is normal. It is important to remember that your payments include your promise to pay back with interest.
VA Jumbo Streamline Loan Credit Score Requirements
Generally speaking, lenders will require a minimum credit score of 580 to 620 to qualify for a VA loan. Fortunately, though, alternative exist, if a borrower has sufficient residual income, some lenders will even approve VA loans with a credit score of 500.
VA Jumbo Streamline Funding Fee
The VA Funding Fee goes directly to the VA to ensure the program keeps running for future generations of Veteran and military homebuyers by removing any additional burdens off taxpayers and Veterans.
The fee varies depending on the borrower's circumstances. For example, if this is your first time using the VA home loan program, the funding fee is typically 2.3 percent of the purchase price of the home. For subsequent use of your VA loan benefit, the fee is 3.6 percent. The fee for an Interest Rate Reduction Refinance loan is just 0.5 percent, no matter how many times you’ve used the benefit.
VA borrowers can roll the funding fee into their overall loan amount. The VA also limits closing costs for Veterans and allows sellers to pay most or all of those expenses. Many of our borrowers purchase a home with no money due at closing, but every buyer’s situation is different.
The VA also exempts some Veterans and surviving spouses from the funding fee entirely. The most common exemption is for Veterans receiving compensation for a service-connected disability. Surviving spouses with VA loan eligibility are also exempt. Only the VA can make a determination about funding fee exemptions.
Talk with an Orbit Home Loan specialist if you're considering a VA Jumbo Streamline.
Are jumbo mortgage rates higher?
Traditionally, when looking to refinance you must have a net tangible benefit. Although the benefit does not have to be a better rate this is a viable option to get a better rate. Make sure to work with your Orbit Home Loan Broker to figure out what the best option is for you.
VA Jumbo Streamline Loans v. Traditional Jumbos
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Talk with an Orbit Home Loan specialist if you're considering a VA Jumbo Streamline.