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4 min read May 18, 2023

VA Jumbo Loans: Benefits, Limits, and Requirements

Veteran and active-duty service members trying to buy a high-priced home can opt for a VA jumbo loan. A VA jumbo mortgage helps military borrowers purchase homes that exceed the conventional loan limits set by the Federal Housing Finance Agency (FHFA).

Here’s what you need to know about VA jumbo loans, including the benefits, limits, and requirements.

VA Jumbo Loans

  • Benefits: VA jumbo loans help borrowers get a bigger loan amount while enjoying many benefits they would with a VA loan.
  • Limits: As of 2020, if you have full entitlement, you don’t have a VA loan limit.
  • Requirements: Eligible veteran or active-duty service member with a minimum credit score of 620 can apply for a VA jumbo loan.

What is a VA Jumbo Loan?

A VA jumbo loan is a type of mortgage that allows military borrowers to purchase homes that exceed the conventional limits set by the FHFA.

VA loans don’t technically have limits on their size. However, based on the risk factor a lender may term a sizable loan as a jumbo loan. VA jumbo loans offer several benefits over conventional jumbo loans.

Such as lower interest rates, flexible credit requirements, and no private mortgage insurance (PMI) requirements.

VA Jumbo Loans v/s Traditional Jumbo Loans

Traditional jumbo loans are loans above the conforming loan limit. They do not fall under the security of government-sponsored enterprises such as Fannie Mae or Freddie Mac. Borrowers will have to pay a premium on traditional jumbo loans.

On the other hand, VA jumbo loans fall under the security of Ginnie Mae. You also get a guarantee from the VA, making qualifying for a VA jumbo loan easier. Qualified buyers also get the advantage of the $0 downpayment!

VA Jumbo Loans v/s VA Loans

A VA loan is considered a VA jumbo loan when it exceeds the county-specific limit. For most counties, the limit is around $726,200.

Veterans with full entitlement can borrow jumbo loans with a $0 down payment. Or you may require to pay a down payment depending on the lender’s policy.

Benefits of a VA Jumbo Loan

VA jumbo loans have several benefits for qualifying home buyers. We have listed a few below

  • Low-Interest Rate: VA jumbo loans enjoy lower interest rates than conventional jumbo loans.
  • No PMI: No private mortgage insurance (PMI) requirement when applying for a VA jumbo loan.
  • Flexible Credit Requirements: You enjoy more flexible credit requirements than conventional jumbo loans.
  • $0 Down Payment: No down payment is required for amounts up to the VA jumbo loan limit.

What Are The VA Jumbo Loan Limits?

Veterans with full entitlement no longer have a home loan limit!

VA loan limits do not determine how much you can borrow but set the limit on how much you can borrow without a down payment. The standard limit on VA loans is $726,200 but varies county-wise.

Moreover, the U.S. Department of Veterans Affairs provides a guarantee to your lender. For loans above $144,000, VA will return up to 25% of the loan amount in case you default on your payments.

For full entitlement you must meet any of the below requirements –

  • Never used your home loan benefit
  • Paid a previous VA loan in full before selling the property
  • Used your home loan benefit but had a short sale (i.e faced a foreclosure or compromise sale) and repaid the VA in full

📌 Important: If you have remaining entitlement you will be subjected to the county loan limit. VA will return 25% of the county home loan limit if you default.

What Are The VA Jumbo Loan Requirements?

To qualify you must fulfill certain requirements

  • You should be a veteran, active service member, or an eligible surviving spouse
  • Must have a valid VA certificate of eligibility (COE)
  • You should have a minimum credit score of 620
  • Your debt-income ratio should not exceed 41%
  • You must have a stable income and a history of paying your bills on time

What Are VA Jumbo Loan Rates?

VA jumbo loan rates are similar to VA loan rates. Even if the loan amount is significantly bigger it doesn’t mean you have to pay a higher interest rate. But it can be higher depending on the policies of your lender.

Bottom Line

A VA jumbo loan can help qualifying members purchase their dream home! The benefits are similar to a traditional VA loan, including a $0 down payment if your credit score is high enough and the loan amount is reasonable. Check your credit score and entitlement status before applying.

Frequently Asked Questions

1. What is VA entitlement?

VA entitlement refers to the amount of home loan guarantee that the U.S. Department of Veterans Affairs (VA) provides to eligible veterans, active-duty service members, and some surviving spouses.

2. Is a Down Payment Needed on a VA Jumbo Loan?

Yes. You may require a down payment on a VA jumbo loan. While the VA does not set a maximum loan amount for jumbo loans, lenders typically require borrowers to make a down payment on the amount that exceeds the conforming loan limit.

3. What is the max VA loan amount I can borrow?

Eligible Veterans, service members, and survivors with full entitlement no longer have limits on loans over $144,000! However, you should check your area's VA county loan limits before applying.

4. How much VA loan can I get?

The maximum VA loan amount you can get depends on your entitlement and the loan limits set by the VA, which vary by county. In most areas, the current maximum loan amount without a down payment is $548,250, but it can be higher in high-cost counties.

Related: va home loan limits, va loan entitlement, va loan cap, va loan limit 2023


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