Scott Storace - Branch Manager, 100 Pacifica Drive Ste. 140, Irvine CA 92618 NMLS #226339 949.973.0141

"From the minute you call me to the minute we close, I have your back. No hassles, no banker’s hours & quick response times." - Scott Storace

  • Home Loans up to $3,000,000
  • Interest Rate Float Down Option
 

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Jumbo and Super Jumbo VA Home Loans

Jumbo the Elephant...Where Everything "Jumbo" Got It's Name!

Orange County, CA – What is a jumbo VA home loan? It’s a loan that exceeds $417,000. Every county around the country is given a maximum loan limit of $417,000. But some counties in high cost areas are given higher limits. It’s these counties where jumbo VA home loans are permitted. Orange County, CA is considered one of these high cost areas, as are many counties in California. You can check this VA publication for the 2012 county home loan limits.

The VA does not establish a maximum amount that veterans may borrow. Instead these limits establish the maximum amount that the VA will guaranty in those counties. The VA does not insure 100% of the loan amount. They guaranty 25% of the loan amount. Therefore, lenders still have risk and must underwrite carefully to make sure the veteran is able to make the monthly payments. I mention this as a segue into my next point.

Jumbo VA home loans are not capped at the limits posted in the link above. In fact, the loan limit is set by our investors. In Orange County, CA our investors maximum VA home loan limit at the time of this posting is $1,094,625. The VA will not guaranty the difference between their jumbo VA home loan limit of $621,000 and $1,094,625. Any loan amount exceed $621,000 is considered a super jumbo VA loan.

In cases where the veteran wishes to borrow an amount in excess of the jumbo VA home loan limit they must personally guaranty the 25%. How do they do that? By putting money down on their home purchase. One of the great benefits of standard VA loans and jumbo VA home loans is that there is no down payment required. So, a veteran in Orange County, CA can get 100% financing up to $621,000. For every $1.00 borrowed in excess of $621,000 the borrower must invest $0.25.

For example, let’s assume that a veteran wishes to purchase a $721,000 home in Orange County, CA. The maximum guaranteed jumbo VA home loan limit is $621,000. That leaves an excess of $100,000 to be financed. The minimum down payment required by the veteran would be $25,000 and the maximum loan amount would be $696,000.

The underwriting guidelines for jumbo VA home loans and superjumbo loans vary. These loans are available for VA approved condominiums, townhomes, 1-3 unit residences and 4-unit residences in some instances.

Scott Storace

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