The Department of Veterans Affairs will guaranty a VA home loan for a fully eligible veteran to a maximum of 25%. As an example, if a veteran is fully eligible for $104,250, the maximum loan amount with a VA guaranty is $417,000 with no down payment.
Most counties in the United States fall under this $417,000 limit. The Department of Veterans Affairs has identified many High Cost Counties (about 146 throughout the US) where the VA will guaranty the veteran up to 25% of the limit for that county. For these loans, the Veteran's down payment is still $0 up to the higher limit. By definition, any of these loans for more than $417,000 are VA Jumbo loans.
Calculations for Loans Limits as Set by VA For counties where the VA maximum limit is $417,000:
- Borrower has no money down up to $417,000.
- Borrower pays a 25% down payment only on the loan amount over $417,000.
- Borrower pays the funding fee in cash if the loan ranges from $417,000 to $1,000,000.
- All of the VA benefits stay in place for loans over the $417,000.
For counties where the VA maximum limit exceeds $417,000 (known as VA Jumbo Loans):
- Borrower does not have to pay any down payment for a loan up to the county maximum.
- Borrower pays only 25% down payment on the amount greater than the county limit set by the VA.
- Borrower pays the funding fee in cash for loan between the amount greater than the county limit set by the VA and $1,000,000.
- For loans over $417,000, the veteran maintains all the benefits of a VA loan.
Additional Information about VA Jumbo Loans that exceed county limits set by VA:
- Minimum FICO of 640 required for loans of more than $650,000.
- The VA Jumbo Loan program does not include manufactured homes.
- For loans greater than $417,000, the funding fees cannot be rolled into the loan. These must be paid in cash by the Veteran or by the Seller.
- Multi Unit purchases ( 2-4 Units) top out at $417,000.
- The VA Jumbo Program features only Fixed Rate loans