What is a VA Jumbo Loan?
A VA jumbo loan is a VA-backed mortgage used when the loan amount exceeds the conforming loan limits set for conventional financing. While the VA no longer imposes a maximum loan limit for borrowers with full entitlement, individual lenders may establish their own maximum loan amounts.
The expansion of VA loan eligibility was significantly impacted by the Blue Water Navy Vietnam Veterans Act of 2019, which removed county loan limits for eligible borrowers with full VA entitlement. This change allows qualified veterans to purchase higher-priced homes without a required down payment, subject to lender guidelines.
In Nebraska, VA jumbo loans are often used by veterans purchasing homes in Lincoln, Omaha, and other higher-value markets. These loans follow VA program requirements while incorporating additional lender-specific underwriting considerations.
Potential Benefits of VA Jumbo Loans
VA jumbo loans offer extended purchasing power for eligible veterans.
No down payment required for eligible borrowers
Veterans with full entitlement may be able to purchase higher-priced homes without a down payment, subject to lender approval.
No private mortgage insurance
VA loans do not require PMI, which can significantly reduce monthly housing costs on larger loan amounts.
Expanded purchasing flexibility
VA jumbo loans allow veterans to compete in higher-priced housing markets such as Lincoln and Omaha.
VA-backed loan structure
These loans maintain VA protections and guidelines while accommodating higher loan balances.
Who Might Consider a VA Jumbo Loan?
VA jumbo loans may be a good fit for veterans purchasing homes above conventional loan limits.
- Eligible veterans or active-duty service members with full VA entitlement
- Buyers purchasing higher-priced homes in Nebraska
- Veterans relocating to Lincoln or Omaha markets
- Borrowers seeking to avoid mortgage insurance on larger loans
Things to Consider
VA jumbo loans include additional considerations beyond standard VA financing.
- Lenders may set their own maximum loan amounts
- Credit and income requirements may be higher
- Appraisal standards still apply
- Full VA entitlement is typically required for zero down options
- Eligibility for loan programs depends on your specific financial situation, credit profile, and property details. This information is for educational purposes only and does not constitute a commitment to lend.
What makes a VA loan a “jumbo” loan?
A VA jumbo loan is generally used when the loan amount exceeds conventional conforming loan limits, even though the VA itself does not set a maximum loan cap for eligible borrowers with full entitlement.
Do VA jumbo loans require a down payment?
Eligible veterans with full entitlement may be able to purchase without a down payment, though lender guidelines still apply.
Are VA jumbo loans available in Nebraska?
Yes. VA jumbo loans are available in Nebraska and are commonly used in Lincoln, Omaha, and other areas with higher home values.
How did the Blue Water Navy Act change VA loan limits?
The Blue Water Navy Vietnam Veterans Act of 2019 removed county loan limits for eligible borrowers with full entitlement, allowing higher loan amounts without required down payments.