California VA High Balance Jumbo Loans

California VA high balance Jumbo loans are fantastic for eligible vets buying a home. The standard VA loan limits for 100% VA financing in California range anywhere from $510,400 – $765,600. However, many Veterans are not aware they can actually purchase a home up to $1,500,000 with a small down payment. Basically, VA requires the vet to put 25% down payment on only the amount that exceeds their county loan limit.  This program is available to qualified Vets nationwide.  Below we will look at a few examples and how to determine the required down payment on a VA Jumbo.

• James is purchasing a home in Los Angeles for $850,000. The VA loan limit in LA County is $765,600.  $850,000 – $765,600 = $123,475. The required down payment from James will be 25% of $123,475 which equals $30,869.  This is a great option considering VA mortgages do not have monthly mortgage insurance.

• Ronnie is purchasing a home in San Diego for $1,000,000. The VA loan limit in San Diego is $690,000. $1,000,000 – $690,00 = $310,000. The required down payment from Ronnie will be 25% of $310,000 which equals $77,500

Important VA Jumbo Loan Info:

Applicants will want to ensure they read the basic eligibility requirements below.

 

• Credit Scores –  Unlike the regular VA purchase loans, the Jumbo high balance program will require higher credit scores in order to be approved. Most lenders and banks will require a minimum 620 to 640 credit score to be approved.  There will be additional requirements in place (regardless of credit score) for any vets that have experienced a recent financial hardship. Even with this, the VA jumbo loan restrictions will be much less when compared to regular conventional jumbo loans.
• This program only applies to primary residences. No investor home purchases or vacation home purchases.
• Standard single-family homes, townhomes, and condos. No mobile or manufactured homes, vacant land or acreage permitted.
• Vets will want to have a copy of their DD 214 / VA Certificate of Eligibility before applying.  If you do not have this, please contact us for assistance. You can also visit https://www.archives.gov/veterans/military-service-records
• The lender will also evaluate the veteran’s VA entitlement at this time. Your VA entitlement is one of the most important aspects in determining eligibility.

VA loan limits follow the same conforming loan limits set each year by Fannie Mae and Freddie Mac. Please see the latest California Conforming Loan Limits. Remember, Veterans can exceed these loan limits up to $1,500,000. However, they will have to make a down payment of 25% on the amount exceeding the base limit. See the examples above.

Home buyers that have questions can contact us 7 days a week by submitting the Quick Contact form on this page. This program is available to approved vets in all 50 states. Be sure to also learn about regular 95% California jumbo options here.