VA Jumbo Loan Amount: Higher Limits for Eligible Veterans

The VA jumbo loan amount is a game-changer for eligible veterans who need to finance a higher-priced home. With a VA jumbo loan, veterans can borrow up to $1,500,000 with zero down payment.

This is a significant increase from the standard VA loan limits, which are typically around $510,400 for most areas. The higher limit allows veterans to purchase more expensive homes, such as luxury properties or homes in high-cost areas.

To qualify for a VA jumbo loan, veterans must meet certain eligibility requirements, including having a valid Certificate of Eligibility and a decent credit score.

Discover more: Current Veterans United Mortgage Rates

VA jumbo loans offer 100% financing up to $4,000,000 loan amounts.

The benefits of VA jumbo loans are numerous, including lower rates compared to conventional loans and significantly lower down payments. This makes them a lower risk for lenders, which in turn benefits the borrower.

To qualify for a VA jumbo loan, you'll likely need at least a 620 FICO score and sufficient cash reserves to cover a certain number of months' worth of mortgage payments. Some lenders may not require cash reserves, but it's best to check with your lender for specific requirements.

Here are some key benefits of VA jumbo loans:

VA jumbo loans don't have an upper limit, except for those set by lenders.

The VA loan limits follow the same conventional loan limits as other loans, which can be found on the Federal Housing Finance Agency website.

To determine your loan limit, consider the location of the property, as loan limits are based on the county where you live.

County loan limits are generally higher in areas with more expensive properties, so if you're looking to buy a home in a high-cost area, you may need a VA jumbo loan.

VA jumbo loans are necessary for Veterans who want to buy homes in high-balance communities, such as San Diego, Los Angeles County, and Orange County, which have loan limits of $690,000, $726,525, and $726,525 respectively.

The maximum loan limit is determined by your entitlement and the location of the property, and it's the maximum amount the government will guarantee.

Intriguing read: High Balance Loan Amount

The funding fee for VA jumbo loans is a significant upfront cost, ranging from 1.25% to 3.3% of the loan amount. This fee can be a challenge for some homebuyers.

Fortunately, you can roll the funding fee into the loan amount if you can't pay it upfront. This can make the loan more manageable for those who need it.

The funding fee is waived for certain groups, including disabled veterans, surviving spouses, and Purple Heart recipients serving in an active-duty capacity. This is a huge benefit for those who have served their country.

The benefits of VA jumbo loans are numerous and can be a game-changer for military veterans and their families. VA jumbo loans have lower rates compared to conventional loans, making them a more affordable option.

One of the biggest advantages of VA jumbo loans is that they offer higher mortgage amounts than conventional loans. This means that you can purchase a more expensive home without having to worry about saving up for a large down payment.

VA jumbo loans also offer 100% financing up to $4,000,000 loan amounts, which can be a huge relief for those who don't have a lot of savings. And, with no PMI or mortgage insurance, you can enjoy your new home without the added financial burden.

Explore further: Which Banks Offer Physician Mortgage Loans

A single loan program is available, eliminating the need for a piggyback or second mortgage. This can simplify the home buying process and save you money on closing costs.

Temporary mortgage interest rate buydowns are also available, offering 2/1 or 3/2/1 options that can be paid by the home seller. This can be a great option for buyers who want to combat the increase in rates over the last year.

Additional reading: 1 down Mortgage Loans

VA jumbo loans require a higher credit score than typical VA loans due to the high loan amounts. You'll likely need at least a 620 FICO score to secure a VA jumbo loan.

Lenders set their own credit score requirements, and these may increase depending on the amount you plan to borrow. For example, a lender may accept a minimum median credit score of 680 for jumbo loan requirements.

You may need to have enough cash reserves to cover a certain number of months' worth of mortgage payments. However, not all lenders have a cash reserve requirement for VA jumbo loans.

Service requirements for VA jumbo loans remain the same as for regular VA loans. However, income and credit requirements may be stricter.

You might enjoy: Mortgage Rates with Credit Score of 700

The benefits of VA jumbo loans are very appealing, with lower rates and lower down payments compared to conventional loans.

One of the biggest advantages of VA jumbo loans is that veterans with their full VA loan entitlement don't need a down payment, regardless of the loan amount.

Conventional buyers, on the other hand, might need to put down as much as 20 percent to secure jumbo financing, which can be a significant burden.

If you're a veteran with diminished entitlement, you may need to make a down payment, but the VA's relaxed guidelines can still make this financing option more accessible.

It's essential to understand your remaining entitlement when purchasing a home using the VA Loan, as this amount can be used either on its own or in combination with a down payment for future home loans.

The VA's backing of these loans makes them a lower risk for lenders, resulting in lower rates for borrowers.

VA jumbo financing can offer a tremendous purchasing opportunity for qualified borrowers, with more relaxed guidelines and down payment requirements compared to conventional loans.

Explore further: Equipment Financing with No Money down

Your personal loan limit is determined by two main factors: your entitlement and the location of the property. County loan limits are based on the price of homes in the area, and they're generally higher in areas with more expensive properties.

To determine your county loan limit, look at the price of homes in the area you're interested in. If you're looking to stay at a $0 down payment, you'll need to find homes less than or equal to your county loan limit.

Here are the key things to know about your county loan limit:

If you don't use all your entitlement when purchasing a home using the VA loan, you'll have remaining entitlement that can be used for another loan in the future. This can be a great option if you want to keep your entitlement for a future home purchase.

Recommended read: Va Loan Entitlement Amount

You can get a VA jumbo loan with interest rates that are competitive with non-VA jumbo loans.

The interest rate for a VA jumbo loan may be higher than those offered for a comparable traditional VA loan, but it's still a good option for borrowing a large amount of money.

Because you're borrowing more money, the interest rate for a VA jumbo loan will likely be higher than a traditional VA loan.

A different take: 5 Year Interest Only Mortgage Rates

For those considering a VA jumbo loan, it's essential to understand your mortgage rate options. The interest rate for a VA jumbo loan may be higher than those offered for a comparable traditional VA loan.

You can expect the interest rates for a VA loan to be competitive with non-VA jumbo loans. This means you'll have more options to choose from, potentially saving you money in the long run.

Recommended read: Interest Only Jumbo Mortgage Rates

Conventional loans are a popular mortgage option, but they can be tricky to navigate, especially when it comes to jumbo loans. Conventional jumbo loans are made above the conforming loan limit and can't be securitized through Fannie Mae or Freddie Mac.

This smaller market means buyers can have trouble finding conventional jumbo loans or may end up paying a premium for them. Conventional jumbo loans often require higher credit scores and bigger down payments than standard conventional loans.

Conventional jumbo loans can be a challenge, especially during difficult economic times.

San Diego County has a high-balance loan limit of $690,000 as of January 2019. This is significantly higher than the VA conforming loan limit of $484,350.

Los Angeles and Orange Counties also have high-balance communities, with loan limits of $726,525 as of January 2019. This means that Veterans in these areas have access to a wider range of homes when financing with a no-down-payment VA loan.

The high-balance loan limits in Southern California can be a game-changer for Veterans looking to buy a home in these areas.

If this caught your attention, see: Is There a Limit for Private Student Loan Amount

The VA Jumbo Loan Process is relatively straightforward. Institutional lenders fund VA loans, which then receive a 25% VA guaranty against loss in case of a borrower default.

The VA's guaranty supplements the buyer's down payment for loan amounts beyond the county loan limit. This means that the buyer's down payment is not the sole responsibility for the loan, but rather a supplement to the VA's guaranty.

The loan request will fall into the VA Jumbo loan category if the Veteran tries to secure a loan that is higher than the conforming VA loan limit.

Check this out: Second Time Buyer Mortgage

Institutional lenders fund VA loans, which then receive a 25% VA guaranty against loss in case of a borrower default.

The VA guaranty supplements the buyer's down payment for loan amounts beyond the county loan limit. This means that the down payment provided by the buyer and the VA guaranty work together to secure the loan.

If a Veteran tries to secure a loan that's higher than the conforming VA loan limit, their loan request will fall into the VA Jumbo loan category.

Check this out: Va Loan Amount Limit

If you're considering a VA Jumbo Loan, you're in luck because the process is surprisingly straightforward. Borrowers can still use the VA home loan benefit to buy and finance a home even if the sales price is much more than what the VA limits allow.

The VA Jumbo Loan has some unique benefits that make it an attractive option for veterans who want to buy a high-priced home. For example, normal VA loan rates will still apply with no monthly PMI.

Here's an interesting read: Can I Get a Second Mortgage to Buy Another House

To qualify for a VA Jumbo Loan, you'll need to meet certain requirements, such as documenting adequate mortgage payment reserves if you're borrowing over $2m. Typically, this means having 9-12 months of mortgage payments set aside.

One of the best things about the VA Jumbo Loan is that there's no monthly mortgage insurance (PMI) payment, which keeps payments as low as possible and increases your borrowing power. This is a huge perk for veterans who want to finance a home with a high price tag.

If you're a veteran with full entitlement, you're in a great position to take advantage of the VA Jumbo Loan. You can borrow up to $4mil with 100% financing, which means you won't need to make a down payment.

The funding fee, the only form of mortgage insurance associated with the VA loan program, is rolled into the final loan amount. This means you won't have to worry about making an extra payment each month.

VA mortgage rates are extremely competitive, making the VA Jumbo Loan a great option for veterans who want to finance a high-priced home. In fact, there's nothing in the mortgage marketplace that can compete with the VA high balance and jumbo option.

If this caught your attention, see: High Debt to Income Ratio Mortgage Loans