VA Jumbo Loans

VA Jumbo Loan is a loan partially backed by the U.S. Department of Veteran’s Affairs above the backing threshold of $144,000 set forth by the VA. Typically, the VA will guarantee 25% of your VA loan borrowed from a private lender. However, they will only cover that 25% which is capped at a $144,000 guarantee. If you are at, or below this amount, then they usually do not require a down payment.

The term “jumbo VA loan” is given to any loan exceeding $417,000 in total, or $625,00 in specially designated “high-cost areas” searchable through the national VA database. If the loan exceeds that amount, the veteran, active service member, or spouse will need to bring 25% of the difference as a down payment. This is still advantageous, as it is usually still far below what is required down on a conventional loan.

Since it is guaranteed by the VA, there is still no requirement for the borrower to purchase mortgage insurance.