{"id":1694,"date":"2013-04-19T11:15:15","date_gmt":"2013-04-19T11:15:15","guid":{"rendered":"http:\/\/www.mortgageblogarticles.com\/?p=1694"},"modified":"2013-04-19T11:15:15","modified_gmt":"2013-04-19T11:15:15","slug":"is-a-va-jumbo-loan-better-than-a-conventional-jumbo-mortgage","status":"publish","type":"post","link":"https:\/\/dev203k.orbitwebx.com\/dev203k\/is-a-va-jumbo-loan-better-than-a-conventional-jumbo-mortgage\/","title":{"rendered":"VA Jumbo vs. Conventional Jumbo Mortgage – Texas"},"content":{"rendered":"

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VA Jumbo vs. Conventional Jumbo Mortgage\u00a0in Texas…<\/p>\n

The VA Jumbo loan <\/a>is often a better option than Conventional Jumbo\u00a0<\/a>for veteran borrowers in Texas.\u00a0\u00a0Why you ask?<\/em> First of all just to be clear a Jumbo loan\u00a0in Texas is a loan amount over $417,000<\/span>.\u00a0\u00a0Under Conventional financing moving into Jumbo loan sizes means your interest rate is moving up to.\u00a0 That is not the the case with VA Jumbo loans! The interest rate is about the same as\u00a0the conforming VA interest rate.<\/span><\/p>\n

VA loan rates have historically been\u00a0 up to .50% lower than what you would get in a conventional mortgage!<\/strong><\/p>\n

VA Jumbo home loans <\/a>are loans from $417,000 to $1,000,000<\/span> and require a down payment <\/a>equal to 25% of the amount over $417,000. If you don’t have full entitlement, the amount of entitlement you have already used must be added to the 25%. The standard VA Funding Fee is required.<\/p>\n

The Department of Veterans Affairs does have a funding fee requirement for VA loans. This funding fee can be anywhere between 0.5% to 3.3% of the loan total. However, veterans who were classified as disabled during at least 10% of their time in active duty do not have to pay the fee.<\/p>\n

Getting a Conventional Jumbo <\/a>loan will require great credit and a 20% down payment is most cases.\u00a0Also with Conventional Jumbo the debit to income restriction will be a max of 45%. \u00a0However with a VA Jumbo loan the credit does not have to be as stellar and\u00a0VA <\/a>allows for a higher debt to income ratio<\/strong>.\u00a0 It is also typically easier to qualify for a VA mortgage loan than a conventional mortgage<\/a>. This has become especially true with the current downturn in the housing market.<\/p>\n

Another big advantage of VA mortgages<\/a>, in general, is that they do not require any monthly mortgage insurance<\/strong>! \u00a0Private mortgage insurance (PMI) is generally required on conventional loans when borrowing more than 80% of the value of a property, and the percentage amount varies with the loan-to-value.<\/p>\n

VA Jumbo\u00a0 savings vs Conventional Jumbo on down payment is a MAJOR selling point\u00a0lets look at an example with a \u00a0purchase price of $650,000:<\/strong><\/span><\/p>\n