Many veterans are not aware VA permits jumbo high balance mortgage options much greater than the regular conforming loan limits. In fact, eligible vets purchasing in high-cost locations like Florida, California, Texas, and Arizona have VA jumbo mortgage options available up to $4,000,000 in some cases.
It’s important to remember that these loan amounts exceeding $1.5-$2m are not 100% financing like regular VA home loans. However, they do provide a viable low-down payment option for many vets seeking to finance a house with little down payment.
VA jumbo loans are basically VA-guaranteed mortgages above the standard county loan limits. Currently, the base Conforming / VA loan limit is $832,750 for most of the counties throughout the U.S. Other high-cost cities (Florida, California, DC, New England, etc) can go as high as $1,249,125. However, approved VA loan buyers can still purchase a house with zero down payment up to $2m loan amounts depending on their entitlement and qualifications.
Any loan amount over $2m will require a small down payment of 5%-10% in most cases. But the exact amount will depend on the loan amount requested and borrower eligibility requirements. Even with a small down payment, the program still provides a good option for borrowers purchasing more expensive homes.
Moreover, most regular jumbo loans generally have stricter underwriting requirements when compared to VA jumbo loans. Even so, it’s important that borrowers remember the VA jumbo options will face slightly tighter credit and underwriting standards when compared to regular conforming VA loans.
Most mortgage companies will require credit scores above 620 and a lower debt-to-income ratio. Borrowers will also want to have some savings (Bank, IRA, 401K) to satisfy cash reserve requirements, generally 2-6 months of mortgage payments.
Borrowers are also encouraged to learn about regular 5% and 10% Jumbo loans here. Which jumbo option makes the most sense for you depend on many factors like credit, location and loan amount. As mentioned above, the standard jumbo loans have more restrictive underwriting guidelines.
Please reach out to us above to learn more about all the purchase and VA refinance options, we have specialists ready to assist 7 days a week. Buyers can submit the quick Request Contact Form at the top of this page for a fast response.