How Choosing VA ARMS and VA JUMBOs can cover your military home base

With today's upgraded and updated VA home loan program, buying and selling your own home - even many times throughout your military career and even with frequent military moves - can be achievable and even profitable.

That's because there are so many options with a VA Home Loan to suit your military lifestyle.

To start, the VA will guarantee a maximum of 25 percent of the home loan amount - that's up to $104,250 - for a maximum new home loan amount of $417,000.

But there's a lot more.

What if the house you want costs more than $417,000? The VA  Jumbo Loan is designed to lend you a hand.

Perhaps you've got a powerful career track in the military; in the next five years, you see your salary rising nicely. One of the VA Hybrid ARM Home Loan could be just right for you.

The VA Hybrid ARM Home Loan offers an initial fixed interest rate for a period of three or five years, and then it adjusts annually.

For example, a 3/1 or 5/1 VA Hybrid ARM offers a 1% annual interest rate adjustment after the initial fixed interest rate period, with a 5% interest rate cap over the life of the loan. Interest rate adjustments occur on an annual basis, (except for the first adjustment which may occur no sooner than 36 months from your first mortgage payment on the 3/1 VA Hybrid ARM Home Loan or 60 months from your first mortgage payment on the 5/1 VA Hybrid ARM Home Loan.)

So, as your salary rises, you can manage larger payments; and having smaller mortgage payments to start can fit your current military lifestyle today.

The VA Jumbo Home Loan sounds big...can it fit your needs?

Jumbo could just be the right size for you when it comes to a Jumbo VA Loan - the term "jumbo" just defines any VA new home loan greater than $417,000.

If you are a veteran who wants to purchase or refinance a home that costs more than $417,000 you may be able to use the VA home loan to suit your needs. With the VA  Jumbo mortgage, you'll just need to pay 25% on any amount over the $417,000.

Here's a good example of a VA Jumbo Loan transaction: you're an eligible veteran who has just found your dream home, and it costs $500,000. Your maximum VA loan amount would be $417,000 with a $0 down payment. Then you, the eligible veteran, pay 25% of the amount over $417,000, which would be 25% of $83,000 or  $20,750. In effect, you're purchasing your new home for a down payment of just $20,750 plus closing costs - a lot less than a standard 10% mortgage downpayment - and you're getting the full benefit of a Jumbo VA Home mortgage in the amount of $417,000.

And now, veterans who qualify can apply for a VA Jumbo Home loan up to $1,000,000, with low (25% over $417,000) money down, under new VA Loans Maximum Guaranty Amount guidelines.  

So - you're interested in a property which costs more than your No Money Down Maximum? Just apply for the VA Jumbo Home Loan in larger amount (up to $1,000,000).  The same no-money down rules apply for the first $417,000 of your loan. Then, you'll only pay 25% on the amount over and above $417,000. And you may also pay the funding fee in cash for loans between $417,000 and $1,000,000. You're getting the VA to finance 100% of the first $417,000 of your mortgage.