VA jumbo loans offer veterans and military buyers significant benefits, especially compared to the conventional jumbo landscape.
First, let’s define “jumbo.” While VA loans operate under their own rules regarding county-specific VA loan limits, most lenders still consider anything above the conforming loan limit to be a jumbo loan.
Remember, too, that the VA loan limits don't represent a cap on your purchasing power. There is no maximum VA loan amount set by the government.
Instead, the loan limits help determine how much veterans without their full VA loan entitlement can borrow before needing to put money down.
VA Jumbo Loan Guidelines
Borrowers will usually encounter tougher credit and underwriting requirements for VA jumbo loans compared to a conforming VA loan. But every lender is different. At Veterans United, our credit score minimum for VA jumbo loans is the same as for conforming loans unless you're buying above $1 million.
You may need enough cash reserves to cover a certain number of months’ worth of mortgage payments. Veterans United doesn't currently have a cash reserve requirement for most VA jumbo loans.
Jumbo guidelines will vary depending on the lender, the size of the loan and other factors. But they’re often considerably more lenient than what veterans and military buyers will need for conventional jumbo loans.
Talk with a Veterans United loan specialist for a closer look at our jumbo guidelines and what might be possible.
VA Jumbo Loan Down Payments
Veterans with their full VA loan entitlement do not need a down payment for a jumbo loan, regardless of the loan amount. Essentially, if you can afford it, the VA will back it.
That's an incredible benefit. Conventional buyers might need to put down as much as 20 percent in order to secure jumbo financing. A 20 percent down payment on an $800,000 loan comes out to $160,000.
Down payments can come into play for veterans with diminished entitlement, either because they have a prior VA foreclosure or one or more active VA loans.
But between the more relaxed guidelines and down payment setup, VA jumbo financing can offer a tremendous purchasing opportunity for qualified borrowers.
Talk with a Veterans United loan specialist at 1-855-259-6455 if you're considering a jumbo loan.