VA jumbo loan limits, rates, and requirements

Veterans Affairs (VA) loans are mortgages that are available to active military servicemembers, veterans, and their qualifying surviving spouses. VA loans come with great perks – like no down payment, low interest rates, and no mortgage insurance requirement.

But what happens you’re buying in an expensive area and need a larger loan? A VA jumbo loan can help you buy or refinance that home and still use a VA loan to do it. If you think you might qualify for a VA loan and may need a jumbo loan, it’s a good idea to understand how VA jumbo loans work to see if this might be the mortgage option for you.

What is a VA jumbo loan?

A VA loan is a government-backed loan offered by private lenders and backed by the the U.S. Department of Veterans Affairs. VA loans can come as either fixed-rate or adjustable-rate mortgages. Because the loan is guaranteed by the government, lenders can loosen eligibility requirements. VA loans come with some of the most attractive loan conditions available such as:

• Zero down payment
• Competitive interest rates
• Relaxed credit requirements
• No mortgage insurance requirement

A jumbo loan is a type of nonconforming loan because it exceeds the loan limits for conforming loans set by the Federal Housing Finance Agency. It’s important to note that many VA loans no longer have limits on their size. However, lenders evaluate risk when approving mortgages, and they may still impose caps based on perceived risk.

Qualified borrowers can typically borrow as much as they can afford if they have their full VA loan entitlement. You typically do have a full entitlement if you haven’t used a VA loan before or have repaid a previous VA loan and sold the property it was used to purchase.

Benefits of a VA jumbo loan

With higher loan amounts and flexible credit requirements, VA jumbo loans can be ideal for qualifying home buyers. Here are some major pros to this type of mortgage:

• Qualifying borrowers can purchase more expensive homes with lower credit scores and less down payment.
• Home loans up to $2.5 million usually require no down payment at Rocket Mortgage^®.
• VA jumbo loans don’t require private mortgage insurance (PMI).
• The VA helps qualifying borrowers facing temporary financial difficulty.
• VA home loans have no prepayment penalties.

Is a down payment needed on a VA jumbo loan?

One of the biggest benefits of VA loans is that they do not require a down payment. However, some lenders require some down payment if your VA jumbo loan exceeds a certain amount, you don’t meet a minimum credit score, or you don’t have your full entitlement.

At Rocket Mortgage, no down payment is necessary for loan amounts up to $2.5 million if you have your full entitlement and a credit score of 640 or higher. Borrowers with a partial entitlement or a lower credit score may require a down payment.

What are the VA jumbo loan limits?

VA jumbo loans no longer have amount limits and you can borrow as much as you can as long as you have a full entitlement. Keep in mind that the amount a lender is willing to loan you will be based on your income and credit.

VA loan entitlements usually only limit your loan amount if you already own a house you financed with a VA loan and are looking to buy another home with a VA loan. Because VA loans are meant for primary residences, this won’t apply to most people.

If you’ve received permanent change of station (PCS) orders, you can keep your current home for up to a year while using a VA loan to buy another home in the new location. However, you may not have a full entitlement when buying your second house, so there may be a borrowing limit.

You might also have a partial entitlement if your home was sold in a short sale and you haven’t fully paid the VA back for the difference.

VA loan limits with partial entitlements

If you have a partial entitlement, your VA guarantee works differently. Your maximum loan amount depends on whether you’ll be making a down payment or if you have equity in your home.

The formula for maximum loan amount is:

(Remaining Entitlement + Down Payment/Equity) x 4

If you’re not making a down payment or have no equity, use the following formula:

Remaining Entitlement x 4

Although the VA doesn’t limit the amount you can borrow, most lenders use these formulas when you don’t have full entitlement for VA loans.

When do lenders consider a VA loan ‘jumbo’?

Most lenders consider a loan to be a jumbo mortgage if it falls above local conforming loan limits. Each years the FHFA set the conforming loan limits for most areas and for high-cost areas. VA loan limits also vary based on your number of units.

The standard limit for a conforming loan on a one-unit property in most areas in 2025 is $806,500. In high-cost areas, this limit is $1,209,750 for a one-unit home.

Lenders also set their own limits for VA jumbo loans. At Rocket Mortgage, you can get a VA jumbo loan in any amount up to $2,500,000 if you qualify.

If you have good or great credit and don’t have to make a down payment, a VA jumbo loan can end up saving you money on your house purchase.

What are the VA jumbo loan requirements?

Most property and appraisal requirements for all VA loans apply to VA jumbo loans:

Primary residence: The home must be you primary residence.

Property inspections: The home must pass basic inspections for safety and soundness. A VA loan termite inspection may be necessary depending on the location.

Minimum credit score: Though the VA doesn’t set a minimum credit score to qualify, individual lenders set eligibility requirements. The minimum credit score Rocket Mortgage® requires for a VA jumbo loan is 640. 

Debt-to-income ratio (DTI): DTI is a figure that reflects how much of your income goes toward debt obligations. To determine your DTI, add up your monthly debt payments and divide that sum by your gross monthly income. For VA jumbo loans, Rocket Mortgage clients can qualify with a DTI of up to 45%.

Are VA jumbo loan rates higher?

VA jumbo loan rates are often similar to the interest rates you can get on a regular VA loan. It just depends on market conditions and investor demand at the time you apply for your mortgage. Your mortgage rate won’t necessarily be higher because the loan amount is higher, although it can be.

To get an idea of the VA loan rates, check out our mortgage rates.

How much is the funding fee on a VA jumbo loan?

VA loans don’t have mortgage insurance, but you do pay a VA funding fee is intended to help fund the program. This fee typically ranges between 1.25% - 3.3% the total loan amount depending on your down payment – if any. You’ll typically have the option pay it up front or have it financed into the loan amount.

VA Streamlines¹ – also referred to as interest rate reduction refinance loans (IRRRLs) – are an exception to the range and have a 0.5% funding fee.

You’re exempt from the VA funding fee if you’re receiving VA disability payments or you’re a surviving spouse receiving dependency and indemnity compensation. Another exemption is for people who returned to active duty after receiving a Purple Heart.

The bottom line: A VA jumbo loan can be a great option

If you’re buying a home with a purchase price that exceeds conforming loan limits, you’ll need a jumbo loan. VA jumbo loans are only for military servicemembers, veterans, and their surviving spouses. Unlike conventional jumbo loans, VA jumbo loans don’t require a down payment or mortgage insurance. However, you will need to pay a VA funding fee. Get in touch with one of our Home Loan Experts to learn about all of our mortgage options.

If you think this might be the right mortgage option for you, you can apply for a VA jumbo loan today.

¹ The VA Streamline program may have stricter requirements in some states. In order to qualify for the VA Streamline program, you must have a VA loan. The VA Streamline is only available on primary residences. Cash-out transactions are not allowed. In order to qualify for a VA Streamline, a 0.5% minimum reduction in interest rate on the previous fixed-rate loan must occur if the new loan will be a fixed rate or a 2% minimum reduction in interest rate on previous adjustable rate mortgage loan must occur; a minimum of 6 months of consecutive mortgage payments must be paid on the current loan at the time of application. Some states may require an appraisal. Additional restrictions/conditions may apply.