The Kristoff Team

Utilizing Your VA Eligibility to Finance Your Dream Home

Utilizing Your VA Eligibility to Finance Your Dream Home

South Carolina has long been a popular destination for retiring military, and a recent study by WalletHub helped explain why. The study, which looked at factors like quality of life, economic environment, and access to healthcare for veterans, ranked South Carolina No. 5 on the list of all 50 states.

If you’re a veteran relocating or retiring to South Carolina, you should be aware of the new changes to the VA loan that make the program an even more attractive financing option.

New “Jumbo” Loan Threshold

For single-family homes in South Carolina, the new limit for non-jumbo loans has increased from $647,200 to $726,200. This new threshold for conventional loans is also reflected with VA loans, meaning veterans can obtain a mortgage for up to $726,200 with no money down, and with no private mortgage insurance requirement.

VA Jumbo Loans

It’s important to note that although the rules are slightly different, you can use your veteran eligibility to get a jumbo VA loan. The math can get a little confusing, but basically it breaks down like this:


While the VA guarantees 25% of loans up to the conventional loan limit of $726,200, anything above that limit must be made up by the borrower in the form of a down payment. So, for example if you wanted to obtain a VA loan for a $826,200 property, the down payment required would be $25,000, or 25% of the difference between $826,200 and $726,200.

However, this is still very beneficial to the borrower, since a non-VA jumbo loan for the same amount may have required a $82,620 down payment and possibly require private mortgage insurance.

That’s over $57,000 that can continue earning interest in a retirement or investment account, rather than being tied up in a house.

If you’d like to discuss utilizing your VA eligibility, or if you have any other questions about financing your new home in the South Carolina Lowcountry, call us at 843-603-5924 or Schedule an Appointment with Nick Kristoff.

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