VA jumbo loans are simply VA backed mortgages above the standard county loan limits. As of January 2019, the standard VA loan limit is $484,350 for most cities across the country. Select “high cost” locations in California, Florida, Virginia, the loan amounts go up to $726,525. Eligible VA loan buyers can purchase a home with NO money down up to that limit in any county in the U.S. Additionally, eligible veterans now have Jumbo purchase options up to $1,500,00 loan amounts.
Most of the jumbo options are not 100% financing and require a small down payment from the Vet. However, they provide a great solution especially good for Vets in more expensive locations like San Diego, Honolulu, Miami, Chicago, Phoenix, Los Angeles and Dallas.
For veterans who exceed the county loan limit, he or she will be required to put 25% down payment for ONLY the amount over the county limit. If a veteran exceeds the VA loan limit by $150,000, there would need to be a down payment of 25% of that amount, or $37,500. This required down payment is typically much lower when compared to the down payments required by traditional jumbo loans.
In addition, most standard jumbo loans require higher credit scores when compared to VA jumbo loans. VA borrowers will face slightly tighter credit and underwriting standards for VA jumbo loans compared to standard conforming VA loan. Most lenders and banks will require credit scores above 620 and a lower debt-to-income ratio. Applicants should also have a few months of mortgage payment cash reserves.
Example #1: VA eligible buyer in Phoenix, Arizona looking to purchase a home for $600,000.
- $600,000 (Purchase Price) minus the $484,350 (maximum 100% limit) = $115,650
- 25% of the $115,650 difference is $28,912 or just below 5% of the purchase price
- The applicable VA funding fee over the $484,350 limit would need to either be paid by the veteran borrower or seller.
Example #2: VA eligible buyer in San Francisco, California (high-cost location) looking to purchase at home up to the limit of $1,500,000
- $1,500,000 (Purchase Price) minus the $726,525 (maximum 100% limit) = $773,475
- 25% of $773,475 difference is $193,369 or just under 13% of the purchase price
- The applicable VA funding fee over the $726,525 limit would need to either be paid by the veteran borrower or seller.
Keep in mind there is never any monthly mortgage insurance (PMI) on VA loans. Additionally, VA jumbo interest rates are often more attractive when compared to regular jumbo loans.
Have questions? we are happy to answer any questions about pre approval, VA entitlement, Certificate of Eligibility, etc. We are available 7 days week for buyers that have questions, just submit the Info Request Form on this page.
VA homebuyers can learn more by browsing the website or viewing the helpful video below.
Is the VA Jumbo loan available in all states? Or just Florida, California, etc?
The program is available to qualified Veterans in all 50 states!
Can I use this program even if I used my VA home benefits in the past?
Yes, assuming you sold the house and closed your previous VA loan, you should have no issues.
Is there any penalty if I pay off my loan early?
No – all government loans like VA, FHA or USDA do not have penalties for paying off the loan early. You can sell, move or pay off your loan anytime.
Is the VA jumbo loan a better option when compared to normal jumbo loans? I’m going to purchase a home in Nashville and trying to determine what option would be best.
There are regular jumbo home buying options that go up to 95% loan to value. What option will be best for you will depend on a few things, most importantly credit score. The main advantage to the VA jumbo loan is the credit score requirements is less stringent when compared to regular non-VA programs. Buyers need to have excellent credit to get approved for regular jumbo loans when putting less than 10% down payment. However, credit score down to 640 is often permitted with VA jumbo financing. Please contact us to talk about the details.
Is the VA Jumbo loan offered with regular 30 year fix interest rates?
Yes, 15-year fix or 30-year fix terms, just like normal conventional loans. Interest rates are very attractive.