Contrary to what you may be thinking or heard, FHA and VA financing do have loans that are over the conforming loan limit of $453,100. Putting less money down on proeprties priced over $500,000 is still achievable with an FHA or VA depending on the county the suject property is located. The same is true for a refinance.
Fixed Rate FHA Loans
The most common type of FHA mortgage loan is a 30 year fixed program where your monthly payments consisting of principal and interest never change.
Adjustable Rate FHA Loan
These variable rate loans start with a low interest rate when compared to a fixed rate mortgage, then the rate changes after a specific period in the mortgage note. The periods range from a month to as much as ten years. Selecting an FHA adjustable rate mortgage with an index that reacts quickly lets you reap the full benefits when interest rates are falling.
Down Payment Choices
FHA Programs allow "Zero down" financing when using or receiving special grants depending on your credit score and other factors. Otherwise, borrowers can typically get 96.5% financing up to $679,650 on a single family home and upwards of $1 million if buying 3 to 4 units (FHA's loan maximum limits are subject to the county and state per FHA guidelines.)
FHA loans were rarely used because the previous loan limit of around $362,000 was very low and could not be utilized for many buyers in high-priced areas.
The economic stimulus package passed by Congress in February 2008 increased the maximum FHA loan amount to $625,500 in the Bay Area, and other high cost areas in various states such as California, Florida, New York, Connecticut, Washington. In addition, due to the subprime lending meltdown, FHA is assisting borrowers even with damaged credit and little down payment to buy or refinance a home with a government-insured loan.
You can get an FHA jumbo loan with either:
1.) a low fixed rate — your payment and rate will never change over the life of your loan
2.) an adjustable rate — an excellent choice if you have solid plans to move or refinance in a few years.
3.) temporary buydown - enjoy a lower fixed rare the first few years of your loan
We make it easy for you to understand how you can get into your dream home or to refinance to a lower rate.
Take advantage and use your VA loan eligibility to purchase a home with a zero down payment. The maximum guaranty amount for the VA Jumbo Loan program was recently increased and decreased in some parts of the country. It offers additional funds to qualified borrowers up to a maximum limit of $679,650 which is essentially a VA Jumbo Loan.