VA Jumbo Loans (aka VA High Balance Loans)
Recent legislation has increased the VA Loan Limits for many counties to help Veterans in higher cost areas utilize their VA benefit to purchase a home with a zero down VA Loan.
The Standard VA Loan limit is $417,000. In select higher cost areas approved by the VA, the loan limit is much higher.
More importantly, the VA Guarantee available for Vets is higher in those high cost counties as well. For example, in San Francisco (and much of the Bay Area), the County VA Loan Limit is $625,500. A qualified Veteran can purchase a home up to $625,500 with zero down payment in San Francisco, Oakland, San Mateo, Marin County, Contra Costa County, etc. Los Angeles and Orange County Vets can qualify up to $625,500 with zero down. As well, you can exceed the County VA Loan limit when buying a home by contributing a down payment equal to 25% of the amount over your County Loan limit. For example, in San Mateo County, where the VA Loan Limit is $625,500, if you bought a home for $725,500, your down payment requirement would be $25K. that is very small down payment for a Jumbo size loan. This is unheard of with other Jumbo loan programs. You will still be subject to the VAFF or VA Funding Fee, which could effect the down payment amount slightly. Note – Vets with a 10% or higher VA Disability are exempt from the Funding Fee.
Check out your County VA Loan Limits here:
VA Jumbo Loans do require higher credit scores, liquid asset reserves, and a clean recent credit record.