Understanding VA Jumbo Loan Limits in 2024

VA jumbo loans allow eligible borrowers to obtain mortgage financing above conventional conforming loan limits. With a VA jumbo loan you can buy a more expensive home while still enjoying the benefits of a VA loan like no down payment requirement.

But to get approved, you’ll need to understand the nuances around VA jumbo loan limits. In this comprehensive guide, we’ll explain everything you need to know about VA jumbo loan limits for 2024.

What is a VA Jumbo Loan?

First, let’s define what makes a mortgage a “jumbo” loan.

Jumbo loans are mortgages that exceed the conforming loan limits set by the Federal Housing Finance Agency (FHFA) each year. The conforming loan limit determines the maximum mortgage amount that can be purchased or guaranteed by Fannie Mae and Freddie Mac.

For 2024, the baseline conforming loan limit for a single-family home is $726,200. However, the limit can go higher in certain high-cost counties – up to $1,089,300 for one-unit properties.

Any mortgage above the conforming loan limits for a given area is considered a jumbo loan. Jumbo loans typically come with stricter eligibility standards, compared to conforming loans.

Now let’s talk about VA jumbo loans.

VA jumbo loans carry higher loan amounts like conventional jumbos But they are still backed by the Department of Veterans Affairs VA loan program

That means borrowers can get approved for a jumbo mortgage while enjoying the famous VA loan benefits:

• No down payment required
• More lenient credit standards
• Lower interest rates
• No monthly mortgage insurance premiums

VA jumbo loans offer significant advantages over conventional jumbos for eligible borrowers.

VA Jumbo Loan Limits

When it comes to VA jumbo loan limits, there are two key numbers to pay attention to:

1. County loan limits

The FHFA sets maximum conforming loan limits annually for each county in the U.S. You can look up the conforming limits for your county here.

For VA loans, the county-specific VA loan limit is typically equal to the FHFA conforming loan limit for that county.

So if you want to obtain a VA jumbo loan, your mortgage amount will need to exceed the published VA loan limit for your particular county.

2. VA guaranty amount

The second piece of the puzzle is your available VA guaranty. This represents the maximum dollar amount the VA will guarantee on your loan.

For veterans with full VA entitlement, there is no cap on the potential VA guaranty. You can qualify for a VA jumbo loan of any amount, assuming the lender approves.

However, your VA guaranty can be limited if:

• You’ve previously used your VA home loan benefit. Each use depletes your entitlement unless you paid off the prior VA loan.
• You had a VA home that was foreclosed on or short sold, and the VA had to pay part of the loan balance. This can impact your remaining entitlement.

In these cases, the formula to determine your maximum VA guaranty is:

Remaining Entitlement x 4

So let’s say you have $50,000 in available VA entitlement. Your maximum potential VA guaranty would be $200,000.

With a limited guaranty, the lender will require a down payment once your loan amount exceeds 4x your guaranty.

For example, if you needed a $300,000 mortgage, you’d need to pay at least $100,000 as a down payment. This ensures the VA only guarantees the loan up to your $200,000 entitlement limit.

Do VA Jumbo Loans Have a Maximum Amount?

The VA itself does not impose any limits on the maximum mortgage amount for VA loans. Even jumbo VA loans can be guaranteed for the full amount, as long as you have full entitlement.

However, individual lenders do set their own maximum loan limits for VA jumbo products. This helps the lender control their risk exposure on larger mortgages.

For example, Veterans United currently offers VA jumbo loans up to $3 million. Other lenders may go higher or lower depending on their risk appetite.

So while the VA provides flexible guarantees, you’ll want to shop lenders to find one that will approve the loan amount you need.

How Do I Check My VA Entitlement?

If you’ve used your VA loan benefit before, it’s critical to verify your remaining VA entitlement before applying for a VA jumbo loan.

There are a couple ways to check your current entitlement amount:

• Contact the VA – Call 1-877-827-3702 to speak with a VA representative. They can look up your entitlement status.

• Check your COE – If you have a current Certificate of Eligibility (COE) for a VA loan, it will state your entitlement amount.

• Ask a lender – When you apply for a VA jumbo loan, the lender will pull your entitlement status from the VA system. This is the most accurate way to verify.

Checking your entitlement in advance lets you estimate the maximum VA jumbo loan amount you can get with no down payment.

If you have limited entitlement, you may need to supplement with a down payment. But you still get the VA’s partial guaranty, which can help you qualify.

What Credit Score is Needed for a VA Jumbo Loan?

VA loans are available to borrowers with credit scores as low as 580. However, jumbo loans involve higher amounts and thus higher risk for lenders.

So you’ll likely need a higher credit score for a VA jumbo vs. a regular VA loan. Here are some typical minimum score requirements:

• Up to $1 million – Minimum 620 credit score
• $1-1.5 million – Minimum 660 credit score
• Over $1.5 million – Minimum 700 credit score

These thresholds can vary by lender. The higher your credit score, the better your chances of qualifying for a lower interest rate as well.

Besides your credit score, lenders will review your overall credit profile, income, and debts when approving a VA jumbo loan. Make sure to pay down balances and correct any errors on your credit reports before applying.

How Do VA Jumbo Loan Rates Compare?

VA jumbo mortgage rates are generally very close to rates on conforming VA loans. On a given day, an average 30-year fixed rate on a VA jumbo may be 0.125% – 0.25% higher relative to a conforming VA loan.

But VA jumbo rates will still typically beat rates for conventional jumbo mortgages. This pricing advantage comes from the VA loan guaranty, which offers investors added protection.

Always compare rates from multiple lenders when shopping for a VA jumbo loan. Focus on the lender’s average fees and closing costs as well. This gives you a more accurate view of the true cost.

Wrap Up

VA jumbo loans let eligible homebuyers obtain mortgage financing above the standard conforming limits while enjoying the benefits of VA loans. Just be sure to verify your county’s loan limits and your personal VA entitlement before applying.

With a bit of research, VA jumbo loans can help you buy the home you want with limited restrictions. Connect with a lender to explore your options and get pre-approved today!