VA loans are guaranteed by the Veteran’s Administration, and provide significant benefits to eligible veterans, service members and military families. One of the biggest benefits is that veterans can borrow up to $417,000 without making a down payment.

However, there are many properties in Florida that cost more than $417,000. Does that mean veterans can’t purchase those properties? No, because veterans can still use VA loans to buy more expensive properties, but they will need a down payment, though it’s still lower than the down payment required for conventional borrowers. These are called VA jumbo loans, and they can offer substantial savings to veterans who want to purchase higher-end homes.

Do the math
Let’s look at an example of a VA jumbo loan. If a veteran wants to buy a $600,000 home, he or she won’t be able to purchase it without a down payment since it exceeds the $417,000 limit. However, the down payment required is only 25 percent of the amount over the $417,000 limit. In our example, the purchase price is $183,000 over the limit. That means the down payment required is 25 percent of $183,000 or $45,750. Typically, jumbo conventional loans ask for a down payment of 10 percent of the purchase price, so for a $600,000 home, the down payment for a conventional jumbo loan would be $60,000.

In addition, a conventional jumbo loan requires private mortgage insurance (PMI), which will increase the monthly payment. And VA jumbo lenders typically charge lower interest rates than conventional jumbo lenders, which will further reduce the monthly payment and increase the overall savings.

Find out more
VA jumbo loans have the same eligibility requirements as normal VA loans. And individual lenders will set their own credit and income requirements, based on VA guidelines. If you’re eligible for a VA loan but want a larger property, contact Embrace Home Loans by visiting or calling us at 800-333-3004 extension 3560 and ask about a VA jumbo loan. This little-known benefit is a very cost-effective way for veterans to purchase more expensive properties.