VA loans

Who Is Eligible for a VA Jumbo Loan?

June 3, 2011

Who Is Eligible for a VA Jumbo Loan?

VA Jumbo Loans are offered in situations where qualified borrowers want to apply for a VA home loan higher than the “typical” VA loan limit of $417,000. That dollar amount is set by county, and since the housing market varies from county to county, there are naturally some locations that have more expensive real estate than others.

In these areas, the VA county loan limit is higher than $417,000, and VA borrowers can apply for a VA Jumbo Loan to buy homes which cost more than the typical limit.

Borrowers must qualify for a VA Jumbo loan the same way they qualify for an ordinary loan, but there are additional requirements that can apply depending on how much the borrower needs and other factors.

In counties where the VA maximum loan limit is higher than $417,000, VA loan applicants can apply for a no money down loan on the county loan limit. That means that if the county loan limit is $1 million, and the borrower qualifies for the maximum VA loan based on income, credit history and other typical factors, a $1 million home is attainable.

In some cases, loans above $650,000 require a credit score of 640 or higher–this is applicable in cases where the VA loan exceeds the VA county limit. The VA Jumbo Loan program does not permit borrowers to finance the VA funding fee for any loan greater than $417,000. The funding fee amount in such cases must be paid in cash by the VA loan applicant or the seller.

A VA Jumbo loan might be at or under the VA loan county limit, but those that exceed the county limit require a down payment. In such cases, the VA Jumbo Loan rules state that the borrower pays 25% down on the amount which exceeds the county limit–not the total cost of the VA loan.

That means that in a hypothetical situation where the county limit is $1 million, and the VA jumbo loan is $1 million, 250 thousand dollars, the borrower would put 25% down on $250,000–the amount that exceeds the VA loan limit.

VA Jumbo loans are fixed-rate only, they do not have a variable rate mortgage option, and other terms and conditions may apply. Get more information on VA Jumbo Loans at

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