VA Jumbo Loans (aka VA High Balance Loans)

Recent legislation increased the VA Loan Limits for many counties to help Veterans in higher cost areas utilize their VA benefit to purchase a home with a zero down VA Loan.

The Standard VA Loan limit accross the nation is $417,000.   The VA authorized higher VA loan limits in certain high cost counties, creating VA Jumbo Loans.

More importantly, the VA Guarantee available for Vets is higher in those high cost counties as well.  For example, in Oakland, San Francisco,  Fremont (and much of the Bay Area), the 2012 County VA Loan Limit is $625,500.    A qualified Veteran can purchase a home up to $625,500 with zero down in these parts of the greater San Francisco Bay Area.  

The VA allows you to exceed your County VA Loan limit when buying a home by contributing a downpayment equal to 25% of the amount over your County Loan limit.  For example, in San Jose, where the VA Loan Limit is $625,500, if you bought a home for $725,500, your down payment requirement would be $25,000 , a 3.45% down payment. This is unheard of with other loan programs. You will still be subject to the VAFF or VA Funding Fee, which could effect the downpayment amount slightly.

Check out your County VA Loan Limits here:

California County VA Loan Limits

Washington State County VA Loan Limits

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.