Starting in 2020, U.S. military veterans will be able to qualify for more expensive home loans without having to come up with a down payment. When it comes to home loans, there’s a dividing line between conforming loans and jumbo loans.
The maximum amount for a conforming loan right now in Mendocino County is $510,400, and any loan greater than that is considered a jumbo loan. Jumbo loans are harder to get because they have stricter guidelines, often including a bigger down payment, a better credit score, and a lower debt-to-income ratio.
Until Jan. 1, 2020, if you were a veteran who qualified for a VA loan, you could only get 100 percent financing (zero down payment) on a conforming loan.
If you wanted a loan greater than $510,400, you had to come up with a down payment representing 25 percent of the difference between $510,400 and the purchase price of the home you wanted. For example, if you wanted a $600,000 purchase, you’d have to come up with a down payment of $22,400, which is 25 percent of the difference between $600,000 and $510,400.