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VA Jumbo Loan: Higher Mortgage Loan Amounts For Veterans

3-Minute Read
Published on January 12, 2022
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Are you a veteran or a member of the U.S. military who needs a very large loan amount for your home? Good news! Rocket Mortgage® is proud to offer the VA jumbo loan for amounts over $548,250 – up to $2 million.

VA jumbo loans are a top benefit for veterans and military personnel because they have more flexible requirements and higher loan amounts than conventional loans. Contrary to popular belief, the Department of Veterans Affairs (VA) actually doesn’t write the mortgages.

Instead, the VA insures the loans that are written by banks and mortgage companies. Financing (or refinancing) with VA loans is only available for veterans and active members of the U.S. military or eligible reservists and surviving spouses.

A surviving spouse is defined as being the spouse of someone who passed in action or as a result of a service-connected disability. In general, surviving spouses can’t be remarried (with limited exceptions).

Let’s go over VA jumbo loans requirements and their benefits.

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Get approved with Rocket Mortgage® – and do it all online. You can get a real, customizable mortgage solution based on your unique financial situation.

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Does The VA Offer Jumbo Loans?

Many people know about the VA loan, but the VA jumbo loan is a lesser-known offering intended to help people who are looking at houses with prices higher than conforming loan limits. We’ll get into a bit more detail on those loan limits below, but in general, the conforming loan limit is $647,200 for 2022.

These jumbo offerings also have all the benefits of a standard VA loan. We’ll dig into those a bit later on.

What Is The Loan Limit In My Area?

In most areas of the country, the general conforming loan limits apply. If you live in a county that’s considered a high-cost area, there may be higher loan limits before you have to go with a jumbo loan.

VA loans follow conventional loan limits. Looking at the Federal Housing Finance Agency can help you find the conventional loan limit in your area.

The Benefits Of VA Jumbo Loans

The VA jumbo loan offers higher mortgage amounts than conventional loans. These flexible guidelines often allow more homeowners to refinance in difficult housing and financial markets. Here are some of the benefits of refinancing or buying with a VA jumbo loan:

  • If you’re purchasing a home, you have the option of doing so without a down payment of up to $1.5 million, as opposed to typical jumbo loans, which require a 20% down payment.
  • There’s no mortgage insurance with a VA loan, compared to other types of home loans, which may require a private mortgage insurance for down payments less than 20%.
  • There are no prepayment penalties on VA home l
  • VA assistance is available for veteran borrowers in default due to temporary financial difficulty.
  • You have the ability to roll the VA funding fee into the loan amount in many cases, and there’s no funding fee for disabled veterans or surviving spouses. If you're a Purple Heart recipient serving in an active-duty capacity, you're also exempt from the funding fee.

Jumbo VA Loan Requirements

VA jumbo loans require a higher credit score than typical VA loan requirements due to the high loan amounts. While the VA has no minimum credit score requirements, lenders do set their own. For a regular VA Loan from Rocket Mortgage®, the minimum median credit score is 580. However, jumbo loan requirements are stricter, with a minimum median FICO® Score of 640.

VA jumbo loans higher than $1.5 million require a 680 median FICO and 10% equity. Although this is Rocket Mortgage’s policy regarding VA jumbo down payments, it’s important to note that other lenders may have different requirements.

Down payments also work a little bit differently if you’ve got an impacted entitlement, meaning you only have a partial entitlement left after using another VA loan without selling or paying off the property. It’s also important to note that there may be different interest rates offered between lenders.

Apply Online with Rocket Mortgage

Get approved with Rocket Mortgage® – and do it all online. You can get a real, customizable mortgage solution based on your unique financial situation.

Apply Online

The Bottom Line: A VA Jumbo Loan May Be The Right Option For You

A VA jumbo loan may be the right option for you if you’re looking to take advantage of VA benefits – such as no down payment or mortgage insurance required – while purchasing or refinancing your home.

Ready to take the next step? Get started and apply online with Rocket Mortgage.

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Miranda Crace

The Quicken Loans blog is here to bring you all you need to know about buying, selling and making the most of your home. Whether you’re thinking about becoming a homeowner, selling your current home or looking to keep your place in tip-top shape, our writers and freelancers bring their experience and expertise to meet you right where you are.