VA LOAN CAPTAIN BLOG & Learning Center

VA Jumbo Loan

By: Grant Moon 08/25/12 10:38 am

VA Jumbo Loan


The VA loan has a maximum amount of $417,000.00 in most counties that can be done with no down a payment. For prospective homeowners that wish to purchase a home for more than $417,000 then you have two options with a VA Loan: 1) Purchase your home in a county that has a higher limit allowable by the VA 2) Do a VA Jumbo Loan.

A VA loan for a qualified veteran will have 25% of your loan guaranteed by the Department of Veterans Affairs. So, if a veteran is totally qualified at the maximum limit of $417,000, then the VA guarantees $104,000.00 which is 25% of the $417,000 amount.

Most of the counties in the U.S. fit into this classification. The Department of Veterans Affairs has labeled some counties as “High Cost Counties” – which have roughly 146 counties – in which the VA will guarantee the veteran a maximum of 25% of the county’s over-the-maximum cost. For example, if you were looking to buy a home in San Francisco then you could use your VA Loan for up to $625,000 in which case the VA will guarantee $156,250. There is no down payment requirement so long as it is at or below the county limit. In cases where the VA Loan is over the county limit, it is called a VA Jumbo Loan.

In counties that have a maximum limit of $ 417,000

  1. There is no down payment for the borrowers on the initial $417,000.00.
  2. For loans over $417,000 the borrower will have to cover 25% of  the amount over the maximum county limit and that is called the VA Jumbo Loan
  3. Normally lenders charge a higher interest rate on fixed fee Jumbo Loans
  4. The funding fee will apply

In counties where the VA maximum limits goes over $417,000.00:

  1. There is no down payment for the borrower up to the maximum cost for the county limit.
  2. All standard VA Loan benefits and procedures apply.

Supplementary information about VA Jumbo Loans which go beyond the maximum cost of the county as arranged by VA:

  1. For loans that are more than $650,000.00, a credit score of at least 640 is required.
  2. VA Jumbo program doesn’t qualify manufactured homes.
  3. The VA Jumbo Program is only for Fixed Rate loans.
  4. Additional terms and conditions may be required.

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