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Is it possible to get a VA loan for a $850K mortgage loan? 0 down to 5% down at most!

  • June 08 2011 - Frederick
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Answers (8)

Best Answer

you would need to put down $31,250 plus closing costs and prepaids.
  • June 08 2011
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@ Nick.... Thanks... this is good info to have. I think I will be ready by July but I have some debt to payoff first. I'm in the High 600's maybe 700+ by the end of this month.
  • June 09 2011
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This may be different depending on which lender you are using because above the limits the guidelines become very institutionally specific.  That being said you will want to work with someone that has closed some VA jumbo's before.

With my bank you would need to put down 25% of the difference between the VA loan limit (in Frederick County this is $818,750) and your sales price. 

$850,000 - $818,750 = $31,250 x .25 = $7,813.  You would also need to pay your funding fee (3.3% for subsequent use, or 2.15% for first time use), assuming 3.3% this would be about an additional $28,000.

The bigger concern out of all of this is that these limits are set to expire on September 30th - the loan must be closed by this date.  So my suggestion is to not wait 2 months to proceed. 

Closing costs are going to be about another 3%, unless you receive seller concessions. 

  • June 09 2011
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@BKJH... I knew that much! Closing and other fees is what I meant (process).

@ David... I'm not ready to apply for another 2 months. I will be in touch when I'm ready, If you can help me secure the loan.
  • June 08 2011
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"So what exactly does that mean? How would that work for me if I want to buy a 850K house and use my VA."

With a name like Mathmik one would have thought you wouldn't need help with this.

 $850,000
-$818,750
----------------
$  31,250

This is 3.676% Down which falls within the 0-5% you requested.
  • June 08 2011
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Yes, It is possible to get this loan, basically you would be able to do the loan, with a small down payment. (less than 5%)

With sellers concessions you will be able to eliminate most of the closing costs except for the VA non-allowable fees...
  • June 08 2011
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So what exactly does that mean? How would that work for me if I want to buy a 850K house and use my VA.
  • June 08 2011
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$818,750 is the VA loan limit In Fredrick County MD. 
  • June 08 2011
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