There are two types of VA Loans often referred to as a VA Jumbo Loan. This first is for high cost areas where the base loan limits are increased due to the median price of a home for that area. In these cases, the same 100% financing no down payment guidelines apply. However, in Texas, there are not any high cost areas that fall in to this category (as you can see from this link at the Dept. of Veterans Affairs) so the limit is $453,100 throughout the state.
The second type of Jumbo VA Loan is called a High Balance VA Loan. Veteran borrowers can increase the amount of their VA loan by making a relatively small down payment with their home purchase. Usually they need to put down 25% of the incremental amount over the $453,100 limit. For example, if the purchase price of the home is $483,100 that’s $30,000 more than the $453,100 limit. So the borrower would need to put down 25% of $30,000 or $7,500. That’s just 1.5% of the purchase price on a $483,100 home! And the more flexible VA underwriting guidelines with no mortgage insurance still apply.
There are some situations where a borrower may have partial entitlement from previous use of a VA loan. In these cases, the loan amount available to the Veteran may be affected. The best thing to do is fill out the short form to the right and we will contact you to get the details and help you determine the maximum loan amount you can receive.