VA Jumbo Loans (aka VA High Balance Loans)
The Standard VA Loan limit across the nation is $726,200. Congress has authorized the VA to establish higher VA loan limits in certain high cost counties, creating VA Jumbo Loans (aka VA High Balance Loans). VA Jumbo Loans are VA loans that exceed $726,200.
More importantly, the VA Guarantee available for Vets is now unlimited for Veterans with full VA Entitlement available. This changed with the Navy Blue Water Veterans Act.
While qualified Veterans can now purchase a home up to $2m with zero down payment required, the VA loan limits are still in place. Why is this? Well, for Veterans with partial VA Entitlement available (ie you have a current VA Loan that will not be paid off prior to purchase, or experienced another situation where your VA Entitlement was not restored). Just to make it a bit more confusing (the VA is good at that), the VA loan limit is actually not a limit at all.
Here is an example of how this is calculated. Let's say you have a current VA loan that was originally a $400K balance. That will result in a $100k charge against entitlement. You are purchasing a $900k home in San Diego County. Here is the math: your available VA Entitlement is the San Diego County limit times 25% ($977,500 x .25 = $244,375). We then subtract the charge against entitlement to reach the "available entitlement". $244,375 less the $100k gives us $144,375 available entitlement. Your new home will require 25% of the purchase price or appraised value, whichever is lower. $900K x .25 = $225k. Subtract the available entitlement of $144,375 and the required down payment is $80,625. Now the lender can achieve the 25% guarantee requirement as your down payment has made up for the insufficient VA Entitlement.
VanDyk Mortgage requires just a 500 fico on our VA Loans and a 580 mid score on VA Jumbo Loans up to $2M loan amounts.
VA Jumbo Loans can be used to purchase or refinance: Single Family Homes, VA Approved Condominiums, PUDs, Townhomes, Manufactured Homes (real property), Duplexes, Triplexes, Quadplexes, and country homes.
I have specialized in VA Loans and VA Jumbo Loans since 2008. It is my honor to assist Veterans and Active Duty Military utilize their VA Home Loan Benefit. ~ Brian Skaar, Branch Manager, VanDyk Mortgage.
Check out your County VA Loan Limits here:
VA Jumbo Loans do require higher credit scores, liquid asset reserves, and a clean recent credit record.
Here is some info on VA Loans in California and VA Loans in Washington.
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