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California VA Jumbo Loans With No Down Payment

California VA jumbo loans are a popular financing option among military members and veterans buying a home in a pricey real estate market. California VA jumbo loans enable you to purchase a relatively expensive home, while avoiding the down payment typically associated with a regular mortgage.

You can learn more about this mortgage financing option below. If you have additional questions that are not covered in this article, please contact our staff. We offer California VA jumbo loans to borrowers all across the Golden State, often without a down payment.

What Is a California VA Jumbo Loan?

The terminology and concepts relating to jumbo mortgage products can be a bit confusing, especially for first-time home buyers and borrowers. So let’s start with the basics:

  • VA loan — This term applies to a mortgagee loan that is guaranteed by the U.S. Department of Veterans Affairs. The loan itself is generated by a mortgage lender in the private sector, like any other type of mortgage product. But it also receives a partial guarantee through the federal government, which makes it unique. This guarantee gives the lender an added layer of protection from the possibility of borrower default.
  • Jumbo loan — As its name suggests, a jumbo mortgage product is one that exceeds the conforming loan limit for the county where the home is being purchased. These limits are established by the Federal Housing Finance Agency, or FHFA. In the past, the VA has used these “conforming limits” for VA loans. But all of that changed in 2020, when they removed the loan limits for most borrowers. (See below.)

In California, the 2021 conforming limits range from $548,250 to $822,375, depending on the county. But they can change from one year to the next.

Put these two terms together, and you have a California VA jumbo loan. This a VA-guaranteed mortgage loan that exceeds the county-specific limit where the home is being purchased.

For Most Borrowers, There Is No Longer a ‘VA Loan Limit’

The term “VA jumbo loan” is less relevant today than it used to be. That’s because of a policy change initiated by the Department of Veterans Affairs back in 2020. They basically removed the official loan limits for most borrowers, leaving it in place only for those with partial / remaining entitlement.

Here’s where things get a little confusing, as government programs often do.

  • If you have full entitlement (because you’ve never used a VA loan, or used one but paid it off), you do not have a VA loan limit to worry about.
  • If you have remaining entitlement, you still have a limit. But you could borrow above that amount if you were to make a down payment based on the difference.

As it states on the Department of Veterans Affairs website:

“If you have remaining entitlement for your VA-backed home loan, find out the current loan limits and how they may affect the amount of money you can borrow without a down payment. As of 2020, if you have full entitlement, you don’t have a VA loan limit.”

Here’s a simpler way to think of it:

The official, county-specific loan limits determine how much a person without their full VA loan entitlement can borrow, before having to put money down. Military members and veterans with full entitlement can borrow as much as the lender is willing to offer, without making a down payment.

Loans Up to $5 Million With No Down Payment

To recap, a California VA jumbo loan is one that exceeds the conforming limits for the county where the home is located.

For example, the 2021 loan limit for most of the San Francisco Bay Area is $822,375. So if a borrower uses this program to finance a home purchase of $1 million or so, they are technically using a California VA jumbo loan.

The total amount you can borrow will depend on your income situation, as well as the lender you choose. Many mortgage lenders in California cap their VA jumbo loan amounts at around $1.5 million, regardless of the borrower’s income. But our business model allows us to offer more than that.

By working with a broad range of lending partners, we are able to provide California VA jumbo loans up to $5 million in some cases (with no down payment).

A Great Opportunity for Eligible Borrowers

California VA jumbo loans offer a unique opportunity for eligible borrowers. You really can’t beat this program, when it comes to borrowing capacity and other important benefits. No other mortgage product will allow you to buy a house in California for $1 million or more without making a down payment.

At Bridgepoint Funding, we are passionate about the VA loan program because it rewards our service members and veterans. Located in the Bay Area, we offer mortgage financing to borrowers all across the state. Please contact us if you have a question about California VA jumbo loans, or if you’d like to apply for one.

You can also learn more about this program from our frequently asked questions page.

Mike Trejo

Mike Trejo is a Bay Area mortgage broker with 20+ years of knowledge and experience.

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