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. The VA has authorized higher VA loan limits in certain high cost counties in California, Washington, Virginia, Massachusetts, and Wyoming.
More importantly, the VA Guarantee available for Vets is higher in those high cost counties as well. For example, in San Francisco,Oakland, Marin, and San Mateo the 2013 County VA Loan Limit is $625,500 for 2015. A qualified Veteran can purchase a home up to $625,000 with zero down in these counties. The Los Angeles, and Orange County VA Loan Limit is $625,500 for zero down financing, and San Diego Vets are OK with zero down up to $562,350, and Seattle Vets can qualify up to $517K.
The VA allows you to exceed your County VA Loan limit when buying a home by contributing a down payment equal to 25% of the amount over yourCountyLoanlimit. For example, in San Diego County, where the VA Loan Limit is $562,350, if you bought a home for $662K, your down payment requirement would be $25K (3.763%) that is a small down payment. This is unheard of compared to other loan programs. All VA Loans are subject to the VAFF or VA Funding Fee, however Veterans with a 10% or higher VA Disability rating are exempt from the VA’s Funding Fee.
Check out your County VA Loan Limits here:
VA Jumbo Loans typically do require higher credit scores (640+), liquid asset reserves (0-6 Months depending on the scenario), and a clean recent credit record. We are able to work with individual situations that may not meet the Minimum qualifications that other Lenders require – such as prior Bankruptcy, Prior Foreclosure, moderate credit rating (640+), or very little in savings (ie Reserves).