Everything You Need to Know About VA Jumbo Loan Amounts

If you’re a veteran or active military looking to buy a home in a high-cost area, you may be wondering about VA jumbo loans. Specifically, how much can you borrow with a VA jumbo loan? I’ll explain everything you need to know about VA jumbo loan amounts in this article.

As a quick overview, VA jumbo loans allow eligible borrowers to get a mortgage over the standard conforming loan limit. This lets veterans purchase more expensive homes while still enjoying many VA loan benefits.

There are a few key things to understand about VA jumbo loan amounts:

• The VA doesn’t set a maximum loan amount. You can qualify for a VA jumbo loan of any size, assuming the lender approves you.

• Most lenders consider loans over the conforming limit in your county to be jumbos. This is usually around $750000.

• Your remaining VA entitlement can impact the max you can borrow without a down payment.

• VA jumbo loans up to $1.5 million usually don’t require a down payment if your credit is good.

• The max VA jumbo loan amount varies by lender. Some go up to $2 million or higher.

Now let’s take a deeper look at VA jumbo loan amounts and limits.

What is a VA Jumbo Loan?

First, a quick refresher on what makes a VA jumbo loan different.

VA loans are available to eligible military members, veterans, and surviving spouses. They come with advantages like:

• No down payment required
• Relaxed credit standards
• No monthly mortgage insurance
• Ability to roll closing costs into the loan

These loans are backed by the Department of Veterans Affairs. However, you work with private lenders who can set their own eligibility standards and loan amounts.

Jumbo loans are mortgages over the conforming loan limit set by the Federal Housing Finance Agency (FHFA) each year. This threshold determines the maximum size of loans Fannie Mae and Freddie Mac can buy.

In 2023, the baseline conforming limit for a one-unit home is $726,200. But it can go higher in expensive real estate markets.

A VA jumbo combines these two loan types. It gives veterans, service members and military spouses the ability to qualify for a jumbo mortgage while enjoying the benefits of a VA home loan.

The VA Doesn’t Set a Maximum Loan Amount

One key point about VA jumbo loans is that the VA itself doesn’t limit how much you can borrow.

According to VA policy, lenders can make a VA-backed loan in any amount. The VA will guarantee the same percentage of the loan regardless of the size, as long as you have full entitlement.

Now lenders do weigh risk and set their own limits on jumbo VA loans. But there’s no set maximum across all lenders imposed by the VA.

So if you find a lender willing to approve you, theoretically you could get a VA loan for a $2 million home or even higher. The main barrier is finding a lender who will say yes, not a cap from the VA.

Typical Conforming Loan Limits Define Jumbo Loans

In most cases, lenders label VA loans over the conforming limit in your county as jumbos. So this gives you a starting point for what is considered a jumbo.

As mentioned above, the baseline conforming limit for a one-unit home is $726,200 in 2023. But for high-cost areas, it can go up to $1,089,300.

You can check the conforming loan limits by county on the FHFA website. Or ask your lender – they’ll be able to tell you the limit in your area.

While the conforming loan limit marks the start of jumbo loan territory, that doesn’t mean you are completely constrained by it. If you have full VA entitlement, you may be able to borrow above this without a down payment, depending on the lender.

Your VA Entitlement Can Impact the Max Loan Amount

VA entitlement is an important piece of the puzzle if you already have a VA loan and are looking to buy again. Or if you previously had a VA home that went through foreclosure.

The loan limits we’ve talked about so far assume you have your full entitlement available. This means you either:

• Have never used your VA home loan benefit before
• Currently own a home with a VA loan that’s paid off
• Paid the VA back fully after a short sale on a previous VA loan

If you fall into any other scenario, your remaining entitlement could impact the max you can borrow without a down payment.

The basic calculation is:

(Remaining Entitlement + Any Down Payment) x 4

So if you have $36,000 left in entitlement and aren’t making a down payment, your max no-down-payment loan would be $144,000.

There are a couple ways to restore your full entitlement if you’ve previously used it. But this is an important consideration if you have a VA loan now and are looking to buy again.

Loans Up to $1.5 Million Usually Don’t Need a Down Payment

As mentioned, the VA doesn’t set its own limits on VA jumbo loans. But many lenders follow general guidelines on down payments:

• Up to $1.5 million: No down payment required with good credit (exact score varies by lender)
• $1.5 million to $2 million: 10% down payment required

So if your loan amount is under $1.5 million and you have strong credit, you likely won’t run into down payment requirements. This gives you a good benchmark to work with when house hunting.

Of course, be sure to discuss down payments with your specific lender. Guidelines can vary, especially if you have partial entitlement. But for most borrowers, VA jumbos up to $1.5 million come with the same no-down-payment benefit as other VA loans.

Max Loan Amount Depends on the Lender

The last piece is that every lender sets their own maximum VA jumbo loan amount. So make sure to ask any lenders you consider about their specific limits.

For example:

• Veterans United: No set maximum
• Rocket Mortgage: Up to $2 million
• Navy Federal: Up to $3 million

As you can see, these three lenders alone span a wide range for maximum VA jumbo loan size.

The important thing is figuring out what loan amount each lender will approve you for. The VA won’t stand in the way of you getting a jumbo loan, but individual lender limits will factor in.

How Much House Can You Afford?

While we’ve talked about maximums lenders will finance, another key question is how much you can realistically afford. Just because a lender will make a $1 million VA jumbo loan doesn’t mean it’s financially wise for you.

As a rule of thumb, your monthly mortgage payment (principal, interest, taxes, and insurance) shouldn’t exceed 28% of your gross monthly income. Otherwise, you may be “house poor” and struggle to cover other expenses.

Don’t forget to factor in other debts you owe as well. Your total monthly debt payments, including the mortgage, ideally shouldn’t go over 36% of your income.

Run the numbers carefully and get pre-approved before you start shopping. This will give you a realistic price range for homes you can comfortably pay for.

Work With a Knowledgeable Loan Officer

Understanding VA jumbo loan limits and entitlement can get confusing fast. The best path is sitting down with an experienced VA lender who can explain your specific situation.

I recommend starting your search with major lenders like Veterans United, Navy Federal, or Quicken Loans. Their loan officers will be able to:

• Check your current entitlement
• Provide exact loan limits and down payment requirements
• Pre-approve you for a realistic purchase price

Good lenders want to set you up for success, not saddle you with excessive debt. An informed loan officer guides you in buying a home you can afford, whether it’s a jumbo or not.

Apply for a VA Jumbo Loan Today

• The VA doesn’t cap how much veterans can borrow
• Most lenders treat loans above the conforming limit as jumbos
• Your specific entitlement impacts if you’ll need a down payment
• Loans up to $1.5 million usually don’t need down payments
• Shop lenders to find the highest amount they’ll finance

Ready to move forward? The first step is checking your VA eligibility and getting pre-approved. This shows sellers you’re a serious buyer and gives you an amount to focus your home search on.

Our team can help you get qualified for a competitive VA jumbo loan. Give us a call today to talk about your goals and get the process started!