You’ve probably heard by now that the VA county mortgage loan limits are no longer in force as of January 2020. But you may still hear the terms “VA Jumbo home mortgage” or “jumbo VA home loan.” If there are no more VA loan limits, why would loans still use the “jumbo” word? The difference refers to Federal Housing Finance Agency (FHFA) conforming loan limits. These limits are the source of the terms “conforming” and “non-conforming” loan and “jumbo” loan. A jumbo home mortgage is any mortgage larger than the FHFA loan limits. Along with the financial limits, “conforming” loans also have underwriting guidelines from the government-sponsored agencies that buy the loans: Freddie Mac and Fannie Mae.
What is a VA jumbo home mortgage?
Even though you can get any size VA home mortgage that you can qualify for, VA jumbo mortgages will exceed the FHFA county conforming loan limits.
In many counties, the FHFA conforming loan limit is $484,350 for a single-family home mortgage. In higher housing price counties, the conforming loan limit is $726,525 for a single-family home loan. These limits also increase depending on the number of units in a property. In a high housing-priced county, the conforming loan limit for a 4-unit property maxes out at $1,397,400.
A VA jumbo mortgage exceeds any of these amounts, varying depending on the county where you want to buy. You may still be eligible for a no-money-down VA loan. Your funding fee on a VA jumbo home mortgage may also vary depending on your lender and their policies.
You can still get a VA mortgage at less than the FHFA conforming loan limits with no money down, and you can still roll your funding fee into the VA mortgage.
Some requirements for a VA jumbo home mortgage will differ between lenders. Although you may need to make a down payment for a jumbo VA home loan, it’s calculated as a percentage of the difference between the county conforming loan limit on the property you want to buy and your total mortgage amount.
A VA jumbo home mortgage could help you to buy the home you need and it can help you to ensure you and your family’s financial security. Talk with a knowledgeable, trained VA mortgage specialist to learn what your options are in a 30-year fixed rate VA jumbo home mortgage or other loan terms and options.