VA Jumbo Loans
When the loan amount on your VA loan exceeds the conforming loan limit in your particular county, it is known as a VA jumbo loan. In most counties, but not all, the conforming loan ceiling for 2023 is $726,200.
Are VA jumbo loan requirements different from a regular VA loan?
Generally speaking, VA jumbo loans are handled differently from ordinary VA loans, although the application procedure and minimum service requirements are the same for both.
Differences might exist when it comes to credit, savings, income, and unpaid obligations. The rules differ per lender, but it’s typical for them to demand a higher credit score and larger cash reserves for VA loans over the conforming loan limit than for VA loans below it.
Lenders have different minimum and maximum credit score criteria for VA loans, although 620-660 is often required.
Differences might exist when it comes to credit, savings, income, and unpaid obligations. The rules differ per lender, but it’s typical for them to demand a higher credit score and larger cash reserves for VA loans over the conforming loan limit than for VA loans below it.
Lenders have different minimum and maximum credit score criteria for VA loans, although 620-660 is often required.
VA Jumbo Loan Limits for 2023
What are VA jumbo loan rates?
Loans up to the conforming loan limit have lower rates than VA jumbo loans. Jumbo loans offer greater risk to the lender even with the VA guarantee, which is the reason for generally higher rates.
Despite this, the rates for VA loans are frequently lower than those for conventional and FHA loans. According to ICE Mortgage Technology, the average VA loan rate for the first half of 2021 was 2.80%, while the rate for conventional loans dropped to 3.11%.
Despite this, the rates for VA loans are frequently lower than those for conventional and FHA loans. According to ICE Mortgage Technology, the average VA loan rate for the first half of 2021 was 2.80%, while the rate for conventional loans dropped to 3.11%.
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Get StartedVA Jumbo Loan Down Payment Requirements
You won’t need a down payment even if you are fully eligible for a VA loan. However, you might need to bring a down payment to closing if you have decreased entitlement as a result of not repaying a prior VA loan or a prior foreclosure.
In these circumstances, the minimum down payment is ordinarily 25% of the gap between the loan amount and your available entitlement. Here, you may get a thorough explanation of VA entitlement along with calculation examples.
In these circumstances, the minimum down payment is ordinarily 25% of the gap between the loan amount and your available entitlement. Here, you may get a thorough explanation of VA entitlement along with calculation examples.
Who sets the conforming loan limits?
Conforming loan ceilings are established by the Federal Housing Finance Administration. These legal restrictions govern the types of mortgages that Fannie Mae and Freddie Mac are permitted to buy in the secondary mortgage market.
If you’re not an industry expert, that’s a lot to process. The gist is that Freddie Mac and Fannie Mae buy mortgages in large quantities from lenders in the secondary mortgage market. Buying the debts enables banking institutions to continue offering mortgages to customers without running out of money, which benefits consumers.
If you’re not an industry expert, that’s a lot to process. The gist is that Freddie Mac and Fannie Mae buy mortgages in large quantities from lenders in the secondary mortgage market. Buying the debts enables banking institutions to continue offering mortgages to customers without running out of money, which benefits consumers.
Final Thoughts
When qualifying for a VA jumbo loan, you could face a little more scrutiny, but you’ll also get some incredible perks over a regular jumbo.
The VA guarantee—the percentage of the loan that the VA backs against loss—makes these advantages feasible. Through that assurance, lenders are frequently more prepared to offer advantageous conditions with less scrutiny than a regular jumbo loan, including $0 down.
The VA guarantee—the percentage of the loan that the VA backs against loss—makes these advantages feasible. Through that assurance, lenders are frequently more prepared to offer advantageous conditions with less scrutiny than a regular jumbo loan, including $0 down.