The Department of Veterans Affairs will guarantee a VA home loan for an eligible veteran at a 25% maximum. The VA guarantees 25 percent of all VA loans up to $417,000. Any loan amount above $417,000 is considered a jumbo mortgage, which has higher rates compared to loans below this amount. In counties that the VA deems to be “high cost areas,” the maximum amount is for a jumbo loan in $625,000. The VA will still guarantee the veteran up to 25% of the high cost limit.
For jumbo loans, the borrower pays no money down on the maximum amount for the county limit as set by the VA. The borrower will pay a 25% down payment only on the amount greater than the county limit. The borrower pays the funding fee in cash for the loan between the amount greater than the county limit as set by the VA. In addition, the veteran must meet a minimum credit score and the jumbo loan program is for fixed rate loans only. Manufactured homes are not eligible for the VA jumbo loan program.