Understanding Jumbo VA Mortgage Rates and How They Work

Jumbo VA mortgage rates are a bit more complicated than their standard counterparts, but understanding how they work can make a big difference in your homebuying journey.

To qualify for a jumbo VA loan, you'll need to meet the VA's property value limits, which vary by county and can be as high as $1 million in some areas.

The VA sets a ceiling on the amount of money you can borrow, but the actual loan limit is determined by the county's median home price.

Jumbo VA loans have higher credit score requirements, typically 720 or higher, to mitigate the risk of lending large sums of money.

Jumbo VA mortgage rates are generally higher than loans under the conforming loan limit, but still lower than conventional and FHA rates.

VA jumbo rates are higher due to the additional risk to the lender, but according to ICE Mortgage Technology, the average VA loan rate was 2.80% in the first half of 2021, while conventional fell at 3.11%.

Historically, jumbo loans had slightly higher rates than conforming mortgages, but in 2022 and 2023, jumbo rates were actually cheaper than conforming loans. Today, the dynamic between jumbo loans and conforming mortgage rates has largely returned to the norm.

Here are some current jumbo mortgage rates:

To get the best VA loan rate, it's essential to put your credit and finances in the best possible position, with a credit score above 620 giving you the most options.

VA mortgage rates can fluctuate, and the national average 30-year VA mortgage interest rate is currently 6.50%, down from last week's rate of 6.73%.

The specific rate you're offered depends on your individual credit and finances, which is why it's essential to shop around for the best deal.

VA jumbo rates are generally higher than loans under the conforming loan limit, which is why they often carry additional risk to the lender.

Even with the VA guarantee, jumbo loans typically have higher rates, but they're still often lower than conventional and FHA rates.

In fact, according to ICE Mortgage Technology, the average VA loan rate was 2.80% through the first half of 2021, while conventional loans fell at 3.11%.

To get the best jumbo VA mortgage rate, check your credit score. A score above 620 gives you the most options.

Shop around, as rates can vary by half a point or more from one lender to the next. Some VA lenders have stellar reputations for customer service, while others not so much.

Check out lender reviews to learn more about individual lenders. You can find more information on Bankrate's review hub.

The current jumbo mortgage rates are as follows:

Historically, jumbo loans had slightly higher rates than conforming mortgages, but that relationship changed in 2022 and 2023.

To qualify for a jumbo VA mortgage, borrowers typically need a credit score of 680 or higher, which is higher than the minimum credit score of 620-660 required for regular VA loans.

A good credit score is crucial for getting a lower interest rate, and lenders often require a higher credit score for jumbo loans.

Borrowers should also have a debt-to-income (DTI) ratio of 45% or lower, which means their monthly debt payments should not exceed 45% of their gross income.

A higher DTI ratio can make it harder to qualify for a jumbo loan and may result in a higher interest rate.

Lenders typically require a down payment of 10%-15% or more for a jumbo loan, which is higher than the typical down payment for regular VA loans.

Some lenders might have stricter requirements, so it's essential to shop around and compare offers.

To ensure you can afford the loan, lenders often require 6-12 months' worth of mortgage payments in savings, which is known as cash reserves.

This requirement helps protect lenders in case of a financial emergency or job loss.

Here are the typical credit score requirements for VA loans and jumbo loans:

Note that some lenders might have stricter requirements, so it's always best to check with your lender directly.

To get the best jumbo VA mortgage rate, you need to compare offers from different lenders. Determine whether you qualify for a jumbo VA loan by getting a certificate of eligibility (COE) from the Department of Veterans Affairs (VA).

You'll want to get preapproved from at least three lenders, ideally on the same day, to have an accurate basis for comparison. Your interest rate is based on your credit score, debt-to-income (DTI) ratio, down payment, and other factors.

The interest rate and annual percentage rate (APR) are crucial factors to consider when comparing offers. The interest rate is the cost to borrow the funds, while the APR includes the interest rate and other costs such as the origination fee and any points.

A 0.1 difference in an interest rate can save thousands of dollars over the life of the loan. This highlights the importance of comparing offers carefully.

Here are the key factors to consider when comparing jumbo VA mortgage offers:

By considering these factors and comparing offers from different lenders, you can find the best jumbo VA mortgage rate for your needs.

The current jumbo VA mortgage rates are a bit higher than other loan types, with a 30-year fixed rate jumbo at 7.03% and an APR of 7.08%. This is a common trend in the market.

Historically, jumbo loans had slightly higher rates than conforming mortgages, but that relationship changed in 2022 and 2023. Today, the dynamic between jumbo loans and conforming mortgage rates has largely returned to the norm.

The national average 30-year fixed jumbo mortgage interest rate is 7.03%, up compared to last week's rate of 7.00%. This is a slight increase, but it's essential to note that rates can fluctuate daily.

For those considering a jumbo VA mortgage, it's crucial to compare rates from different lenders. Bankrate often has offers well below the national average to help you finance your home for less.

Here are the current jumbo mortgage rates as of Friday, January 03, 2025:

Remember, these rates are subject to change and may not reflect the rates you're offered. It's always a good idea to shop around and compare rates from multiple lenders.