Veterans Affairs (VA) loans help eligible veterans, active-duty military, and surviving spouses achieve the dream of homeownership. The VA guarantees, or insures, the loan, which protects lenders in the event that a borrower defaults on their loan. VA loans are also known for their advantages to eligible borrowers, such as the lack of a private mortgage insurance requirement.
However, some eligible veterans may need a bigger loan amount, whether because of the size of the home they’re looking to buy or because they live in a high cost of living (HCOL) area. Depending on the loan amount you’re seeking, a VA jumbo loan may be able to help you buy the home you’re looking for.
In this article, we will explain how VA jumbo purchase loans work, as well as their requirements.
VA Jumbo Purchase Loan
The VA jumbo loan works similarly to the standard VA loan, but it is used to purchase homes that cost more than the conforming loan limit set by the Federal Housing Finance Agency (FHFA). In most counties in 2025, that limit is $806,500 for single-unit homes, though it can be as high as $1,209,750 in HCOL counties. When the purchase price is higher than the conforming loan limit, Fannie Mae and Freddie Mac can no longer guarantee it.
That makes jumbo loans a bit riskier for lenders and often leads to larger down payment requirements and more rigorous borrower qualifications. However, the VA may still guarantee loans over that amount for eligible borrowers. With this loan comes some of the familiar VA benefits, often including:
- No down payment
- No private mortgage insurance
- No prepayment penalties
- The mortgage is assumable
So, if you are eligible for a VA jumbo loan, it could be a great way to stay in your preferred area or buy the perfect home for your family’s needs.
VA Jumbo Construction or Renovation Loans
VA jumbo loans can also create opportunities for eligible veterans to build their ideal home or finance costly updates to their home. This can be done under certain circumstances through VA jumbo construction or renovation loans. That construction loan will typically follow a two-time close structure, which includes an initial close on a construction loan and a second close on the permanent home loan.
VA Jumbo Loan Requirements
Borrowers hoping to qualify for a VA jumbo loan will still need to pass standard VA requirements, though. For example, the home would need to meet the VA’s minimum property requirements to qualify for a mortgage. The home would also need to serve as the buyer’s primary residence. The borrower would need to obtain a Certificate of Eligibility (COE) from the VA to prove their eligibility for a VA-backed mortgage.
VA jumbo loan requirements may vary by lender, though. Each lender could offer different interest rates, though those rates will usually be competitive for a VA jumbo loan when compared to conventional jumbo loans. Additionally, required credit scores could differ from one lender to another. The Federal Savings Bank, for example, requires a credit score of 640 or higher for VA jumbo purchase loans up to one million dollars.
Do I need a down payment for a VA jumbo loan?
This depends on a few factors. If you still have access to your full entitlement, you might not need to provide a down payment on a VA jumbo loan. However, you still need to be able to show that you can afford the loan you’re applying for. Lenders will look at things like your credit history, income, debts, and assets to determine that.
Additionally, if there is a discrepancy between the appraised value of the home you intend to purchase and the price you agreed to pay for it, you will likely need to provide a down payment to cover that difference. Even still, this VA benefit can make VA jumbo loans an attractive option for those who qualify, as down payments on conventional jumbo loans can be very expensive.
VA Funding Fee
The VA funding fee is used to help fund the VA home loan program. It is charged at closing, and the amount is determined based on the size of your loan and your down payment. If you provide a down payment of five percent or more, your funding fee will be lower. Then, depending on your loan type, the VA will also consider whether it is your first or a subsequent use of the VA loan, as well as your down payment amount.
The funding fee is a percentage of the loan amount, not the purchase price of the home. You can decide to pay the VA funding fee on your VA jumbo loan all at once or over time by financing it into your loan.
Final Thoughts
For eligible veterans, active-duty service members, and certain surviving spouses, a VA jumbo loan can be a good way to secure a home in a high cost of living area, buy a larger home, or even build or repair a home. Jumbo loans are simply loans that exceed the conforming loan limit set by Fannie Mae and Freddie Mac. If you are considering buying a home with a higher purchase price than the conforming limits, consider seeking out a VA-approved lender to guide you through this process.
This information is intended for educational purposes only. Products and interest rates subject to change without notice. Loan products are subject to credit approval and include terms and conditions, fees and other costs. Terms and conditions may apply. Property insurance is required on all loans secured by property. VA loan products are subject to VA eligibility requirements. Adjustable Rate Mortgage (ARM) interest rates and monthly payment are subject to adjustment. Upon submission of a full application, a mortgage banker will review and provide you with the terms, conditions, disclosures, and additional details on the interest rates that apply to your individual situation.
