What is the Difference Between Normal and VA Jumbo Loan Rates?
The same suite of VA mortgage loans is offered by different VA lenders for low credit scores in Houston. The guidelines that govern the grant of these loans don’t change from lender to lender. However, the interest rates are a different story that varies from lender to lender. From lender to lender, the VA loan percentages have slight variations. The VA home loan lenders that are accepted set their mortgage rates each day using the same index. This is the reason it is hard to find a VA Lender that has a 30 years fixed rate at 2% when all his competitors are at 3%.
However, when computing conforming loan amounts, there lies a difference in the concept of jumbo loans. Before understanding how the jumbo loan rates are set, first, it is important to know what our current VA jumbo loan rates.
A Normal vs a Jumbo Loan
The VA does not usually impose a maximum limit. However, the individual lenders tend to do so. The current VA loan limit is set at $417,000 for VA loans. The loan amount is not a matter of chance. The loan limit is same as the one established for the conventional loans, except for the fact that designated areas deemed, “high cost” any loan amount above $417,000 is labeled as a jumbo loan.
The maximum amount of VA loan that a VA lender will approve without a down payment is $417,000 or up to $625,500 in high-cost areas. The current Jumbo VA loan rates are treated a bit differently, and it is all in favor of the home buyer.
For current VA Jumbo loan rates, the credit score requirements are a lot higher for jumbo loans than for your regular conforming loans. Most lenders ask for credit scores of at least 680 for jumbo loans. But different lenders require varying credit scores, some much higher than others, so you must check with the individual lender to see if you qualify in this area.
Clear Lending is a residential real estate lending services company dedicated to maintain the highest ethical standards to its customers, agencies, and lenders and most definitely committed to customer satisfaction. Clear Lending offers: First Time Home Buyer Loan Programs. Veteran VA Home Loans from 500 credit scores. FHA Loan Programs for 500 credit scores. Rural Home Loans. Construction Loans.