In 2020, the Veterans Administration has recently ended down payments for VA Jumbo loans. Previously, for Jumbo loans, including loans up to $765,000 in designated areas of the US including some in Colorado, the veteran would make a down payment that was a certain percentage of the loan, based on their guarantee available from the VA.
Now, as long as a veteran has all of his or her eligibility restored and does not have any other VA loans active, the down payment is no longer required. So, the bottom line is whether a veteran is buying a home for $150,000 or one at more than $1,000,000, they are not required to put down a down payment, no matter the loan size, if they have all their eligibility intact.
The veteran can also use their VA eligibility subsequent times as long as all previous loans are paid off. A veteran also does not pay monthly mortgage insurance, no matter the loan to value ratio, but they do pay a funding fee. That can vary depending on whether it is a first time use at 1.4% or subsequent use at 3.6%. However, that funding fee is waived if a veteran is receiving 10% or more in disability payments from the VA.
There are many nuances to VA mortgage loans, and we’re here to help. If you’re a veteran and have any questions about what options are available, Indigo Mortgage Colorado is a great resource for the veteran to call.