FHA & VA Jumbo Financing

consulting about FHA jumbo mortgages

Contrary to what you may be thinking or heard, FHA and VA financing do have loans that are over the conforming loan limit of $453,100. Putting less money down on proeprties priced over $500,000 is still achievable with an FHA or VA depending on the county the suject property is located. The same is true for a refinance.

Fixed Rate FHA Loans

The most common type of FHA mortgage loan is a 30 year fixed program where your monthly payments consisting of principal and interest never change.
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Adjustable Rate FHA Loan

These variable rate loans start with a low interest rate when compared to a fixed rate mortgage, then the rate changes after a specific period in the mortgage note. The periods range from a month to as much as ten years. Selecting an FHA adjustable rate mortgage with an index that reacts quickly lets you reap the full benefits when interest rates are falling.
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Down Payment Choices

FHA Programs allow "Zero down" financing when using or receiving special grants depending on your credit score and other factors. Otherwise, borrowers can typically get 96.5% financing up to $679,650 on a single family home and upwards of $1 million if buying 3 to 4 units (FHA's loan maximum limits are subject to the county and state per FHA guidelines.)

FHA loans were rarely used because the previous loan limit of around $362,000 was very low and could not be utilized for many buyers in high-priced areas.

The economic stimulus package passed by Congress in February 2008 increased the maximum FHA loan amount to $625,500 in the Bay Area, and other high cost areas in various states such as California, Florida, New York, Connecticut, Washington. In addition, due to the subprime lending meltdown, FHA is assisting borrowers even with damaged credit and little down payment to buy or refinance a home with a government-insured loan.

You can get an FHA jumbo loan with either:

1.) a low fixed rate — your payment and rate will never change over the life of your loan

2.) an adjustable rate — an excellent choice if you have solid plans to move or refinance in a few years.

3.) temporary buydown - enjoy a lower fixed rare the first few years of your loan

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We make it easy for you to understand how you can get into your dream home or to refinance to a lower rate.

home priced at $625,000 eligible for zero down loan in Orange County Take advantage and use your VA loan eligibility to purchase a home with a zero down payment. The maximum guaranty amount for the VA Jumbo Loan program was recently increased and decreased in some parts of the country. It offers additional funds to qualified borrowers up to a maximum limit of $679,650 which is essentially a VA Jumbo Loan.

Click to see eligibility for a VA Home Loan

    IF you satisfy one of the following conditions:
  • During wartime periods you served 90 consecutive days of service
  • OR
  • During peacetime periods you served 181 days of services
  • OR
  • You have over 6 years of service in the National Guard or Reserves
  • OR
  • You are the surviving spouse, who did not remarry, of an active duty or veteran member who died while serving or from a service-related disability
  • OR
  • possibly due to hardship, service connected disability, medical conditions, convenience of govt. and more.

This is especially beneficial for eligible borrowers (active duty, non-active spouses, Reserves, National Guard, and retired military of the armed forces) who are residing and looking to buy a home with no money down in high cost states such as California, Florida, New Jersey, Maryland, or Washington.

For example, in San Francisco, the maximum loan allowed by the VA is $679,650. The benefits of serving your country is you can get into a home for no money out of your pocket on a down payment provided your income and credit qualify you. A minimum credit score of 640 is typically needed for loans above $650,000

Maximum VA Limits in 2018

California County VA Loan Limit
(zero down)
Alameda county $679,650
Contra Costa county $679,650
El Dorado county $437,500
Los Angeles county $679,650
Marin county $679,650
Monterey county $529,900
Napa county $679,650
Orange county $679,650
Placer county $517,500
Riverside county $453,100
Sacramento county $517,500
San Benito county $679,650
San Diego county $649,750
San Francisco county $679,650
San Luis Obispo county $615,250
San Mateo county $679,650
Santa Barbara county $625,500
Santa Clara county $679,650
Santa Cruz county $679,650
Sonoma county $648,600
Ventura county $672,750
Yolo county $517,500

Don't see your county? Check more VA loan limits here

What is the down payment if the property value is more than the VA loan limit?

This is a great question many military people ask. Let's review a real-world example below.

A veteran decides he/she wants to purchase a home in Mission Viejo, CA for $725,000. If the sales price is over the maximum limit, the required down payment is 25% of the difference between the VA county loan limit and the purchase price.  In Orange County, CA with a $687,500 limit, a $725,000 purchase price would call for a down payment of $9,375 ($725,000 minus $687,500 multiplied by 25%). If it is a refinance (IRRRL), a borrower can pull out 100% of the value minus 25% difference in equity and the existing loan amount.