VA has permitted Jumbo-size home loans for quite a while now. However, many Veterans are still unaware of the program requirements and benefits. This program is available to approved Vets nationwide, not just exclusive high-cost locations in Florida, Texas or California. If you are a Veteran with sufficient entitlement, it’s worth your time to look at this option before standard Jumbo mortgages.
First, it’s important to define what a “Jumbo” loan is. Jumbo loans are those that exceed the basic conforming loan limits set by Fannie Mae and Freddie Mac. As of 2024, most of the U.S. has a conforming loan limit of $766,550, the exception being high-cost locations in California, New York, Virginia, Colorado, and the North East. Some of these locations have a conforming loan limit of $1,149,825.
Approved Vets can secure 100% financing up to their standard conforming loan limit with approved credit, etc. In addition, 100% financing for VA Jumbo loans is now available for up to $4,000,000 loan amounts. Any Veteran financing more than $2m will need to document at least 12 months worth of mortgage payment reserves.
VA Jumbo Advantages:
- VA loans do not require monthly mortgage insurance costs – PMI.
- VA Jumbo loans are normally easier to qualify for when compared to regular Jumbo programs. Many of the standard bank Jumbo loans require much higher credit and down payment.
- VA permits Vet’s to pay only certain “allowable” closing costs.
- VA benefits can be used more than once as long as the Vets does not currently have an active VA mortgage open.
- The program can be used for both VA purchase and refinance assuming the Vet has proper eligibility and entitlement.
- Qualifying is easy and often done on the same day.
VA Jumbo Approval Checklist:
VA Jumbo Approval Checklist:- VA Jumbo is limited to $4,000,000 loan amounts regardless of location.
- The program is limited to only primary homes – investors are not permitted.
- Borrowers should be able to fully document income and assets like any other government home loan.
- Regular VA loans allow lower credit scores in the 500’s. However, the Jumbo variation will require a credit score of 640 or greater from most mortgage lenders.
- Veterans should have some savings for a few months of payment reserves after down payment and closing costs are paid.
- Vets who are using their VA home benefits for a 2nd or 3rd time will be required to pay an increased VA funding fee. The VA funding fee can be rolled into the borrower’s loan amount. This one-time fee can vary based on several variables.
- Standard VA qualifying criteria related to credit profile and debt-to-income ratio limits apply.
Learn more about VA High Balance Jumbo Loans here or call Ph: 800-962-0677
Please also be sure to learn about regular 90% and 95% Jumbo Loan financing here.