VA jumbo loans: Limits and requirements

Quick insights

• VA jumbo loans allow eligible veterans to borrow more than the Federal Housing Finance Agency (FHFA) loan limits for their area.
• With a VA jumbo loan, you may need to have a higher credit score and make a higher down payment than you would with a regular VA loan.
• While funding fee percentages are the same for VA jumbo loans as regular VA loans, the higher loan balances will require a higher fee.ec-va-funding-fee-and-loan-closingec-va-funding-fee-and-loan-closing

As a veteran, access to home loans backed by the U.S. Department of Veterans Affairs (VA) can be a useful benefit earned through service. Most VA loans tend to be used to buy homes that fall within the conforming loan limits set by the Federal Housing Finance Agency (FHFA). But if you need a loan that exceeds those limits, you may be able to do so with a VA jumbo loan.

To do this, it’s helpful to understand what a jumbo loan is, how it’s different from a regular VA loan and associated costs.

What is a VA jumbo loan?

The term “jumbo loan” refers to any mortgage that exceeds the conforming loan limits set by the FHFA.. The VA does not have a maximum loan limit, the maximum loan amount a lender may offer is based on the veteran’s entitlement and if they will be applying alone, with a spouse or with someone other than their current spouse.

Generally, if the veteran has not used their entitlement or will have full entitlement as of the loan closing, there is no actual loan limit, although lenders may limit the amount or require a down payment.

For veterans who may not have full entitlement (e.g. had a prior VA loan foreclosure or has an outstanding VA loan that will not be paid in full as of closing), then as of 2025, the VA loan limit for a single-family home in most U.S. counties is $806,500. In higher-cost areas—such Hawaii, Alaska and the greater New York City, Los Angeles and San Francisco metro areas—the limit may be $1,209,750.federal-house-finance-agency-november-2024federal-house-finance-agency-november-2024 Loan amounts greater than these limits will typically require a down payment.

How are VA jumbo loan requirements different from VA loans?

Overall, VA jumbo loans aren’t that different from regular VA loans. You’ll still need to provide a Certificate of Eligibility (COE) and other supporting documents to prove your eligibility.ec-va-gov-lgy-eligibility-toolkit After that, your lender will consider the following to see if you qualify and under what terms.

Credit score

While the VA doesn’t have a minimum down payment requirement to qualify for a loan, lenders will often set their own credit score limits. Though most lenders prefer a credit score of 620 or higher, borrowers may qualify for VA loans with lower credit scores, often similar to the credit score requirements for a Federal Housing Administration (FHA) loan.ec-va-gov-lgy-eligibility-toolkitec-va-gov-lgy-eligibility-toolkit

Down payment

For veterans with full entitlement, a VA home loan that falls within the conforming loan limits doesn’t require a down payment.ec-va-gov-lgy-eligibility-toolkitec-va-gov-lgy-eligibility-toolkit However, with a VA jumbo loan, your lender may require a down payment. The amount charged for the down payment is at the discretion of the lender, but it often ranges from 10%–25% of the difference between the value of the loan and the conforming loan limit. So, if you were to borrow $100,000 more than the loan limit for your area, your lender may require a down payment ranging from $10,000–$25,000.

Funding Fee

Another important factor to consider with VA jumbo loans is the VA funding fee. This fee is typically a percentage of the loan amount and is designed to help cover the cost of the program.ec-va-funding-fee-and-loan-closingec-va-funding-fee-and-loan-closing The funding fees don’t change if you’re taking out a VA jumbo loan versus a regular VA loan. However, the higher loan balance could mean that you’ll need to pay more up front to cover your fees. You may be able to finance the funding fee in your mortgage or pay it in cash.

Also, the percentages are based on the size of your down payment. For a purchase, let’s say you had $50,000 to make a down payment. For a $500,000 loan, that would be a 10% down payment and your funding fee would be 1.25% of loan value. For a $1 million loan, that same $50,000 down payment would only be 5%, which means your funding fee would be 1.5% of loan value.ec-va-funding-fee-and-loan-closingec-va-funding-fee-and-loan-closing

Interest rates

VA loan interest rates are often competitive with conventional loan rates,ec-va-gov-lgy-eligibility-toolkitec-va-gov-lgy-eligibility-toolkit especially for buyers who are making a smaller down payment. The same is true for VA jumbo loans. Rates will be competitive with conventional jumbo loans. Keep in mind that whether you’re taking out a conventional jumbo loan or a VA jumbo loan, lenders may choose to charge a higher interest rate.

What is the highest jumbo loan you can get with the VA?

Technically, there’s no limit to the amount you can borrow with a VA jumbo loan. However, lenders may set stricter limits on how much someone can borrow based on factors like their credit score, income and the size of your down payment.

Can you refinance your loan to a VA jumbo loan?

If you currently have a VA loan or a non-VA loan, you can refinance to a VA jumbo loan. This may allow you to lower your monthly payment or shorten your repayment period. This includes VA Interest Rate Reduction Refinance Loan (IRRRL) loans, sometimes referred to as VA streamline refinance loans if your presently have a VA loan. These loans may allow you to refinance to a lower interest rate, even if you’re behind on your current loan.ec-va-gov-int-rate-2024ec-va-gov-int-rate-2024

You may also be able to use a VA jumbo loan for a cash-out refinance, which allows you to borrow against your available equity.ec-va-gov-cash-out-refin-loanec-va-gov-cash-out-refin-loan

Can you use VA jumbo loans to build or repair a home?

VA jumbo loans can be used to finance home renovations and new construction projects; however, the home must serve as a primary residence. Also, VA construction loans can be used to finance both the purchase price of the property and the cost to repair the home. This can be a way for eligible veterans to purchase an undervalued property and increase its long-term value.

Chase does not offer VA construction loans.

In summary

The primary advantage of VA jumbo loans could be the ability to secure a larger loan without the need for a hefty down payment. This can make a VA jumbo loan an attractive choice for veterans seeking to purchase more expensive homes.

If you're considering applying for a VA jumbo loan, it’s important to understand the specific loan limits in your county, as well as the down payment and funding fee requirements. Working with a lender who understands the VA loan process and can help guide you through the complexities of VA jumbo loans can help ensure you secure better terms.