Can You Buy A High End Property With A VA Loan?

Key Takeaways

• Yes, you can buy a high-end property using a VA loan with no money down if you have full entitlement.
• The VA jumbo loan program allows loans above the conventional Fannie Mae loan limits without requiring a down payment under certain conditions.
• The Blue Water Navy Act of 2019 reformed VA loan entitlement rules, enabling veterans to access jumbo loans without down payments if they have no other VA loans outstanding.
• Partial entitlement, such as owning another rental property with a VA loan, may require a down payment based on a complex formula.
• Lenders may impose additional overlays, including down payment requirements or credit limits, even if the VA allows jumbo loans.
• Always consult a licensed and experienced loan officer to understand your specific VA loan entitlement and options.

Welcome! If you’re wondering whether you can purchase a high-end or luxury property using a VA loan, you’re in the right place. I’m Carlos Scarpero, and today I’ll clear up the confusion about VA jumbo loans, entitlement rules, and what you really need to know to buy a more expensive home without a down payment. There’s a lot of misinformation floating around the internet — so let’s set the record straight.

Understanding VA Jumbo Loans and the Fannie Mae Limit

One of the most common questions I get is: Can you buy a high-end property with a VA loan? The simple answer is yes. You can even do it with no money down, but there are some important details to understand.

First, let’s talk about what a VA jumbo loan is. A VA jumbo loan is simply a VA-backed mortgage that exceeds the conventional loan limit set by Fannie Mae. The Fannie Mae loan limit acts as a ceiling for most conventional loans, and for 2025, that limit is $806,500 in most parts of the United States.

If your VA loan amount is above this $806,500 threshold, it’s classified as a VA jumbo loan. And here’s the good news — the VA does allow jumbo loans, meaning you can finance a more expensive home without the traditional down payment many people assume is required.

The Historical Context: Why the Confusion?

The confusion around VA jumbo loans mostly stems from outdated information. Traditionally, if your loan amount exceeded the Fannie Mae limit, you were required to put money down.

However, that changed six years ago with the passage of the Blue Water Navy Act of 2019. This legislation was initially designed to address disability payments for Vietnam veterans but also reformed VA loan entitlement rules.

What Changed With the Blue Water Navy Act?

Before the reform, jumbo VA loans generally required a down payment. Now, if you have full entitlement, meaning you don’t have any other VA loans outstanding at the time of closing and no foreclosures on your record, you can purchase any home you want with zero down payment.

This is a huge win for veterans who want to buy high-end properties without tying up their cash. The VA loan program remains one of the few no-money-down mortgages available for veterans, and the jumbo loan option significantly expands the buying power.

Full Entitlement vs. Partial Entitlement

It’s important to understand the difference between full and partial entitlement because it affects your loan options.

• Full Entitlement: You have no other VA loans outstanding, and no foreclosures on VA-backed properties. You can utilize the VA jumbo loan program without a down payment, subject to typical credit and income qualifications.
• Partial Entitlement: You may still have a VA loan on a previous property you’re renting out, or you have another mortgage. In this case, the Fannie Mae rules apply, and you might be required to put a down payment depending on your remaining entitlement balance.

Partial entitlement situations can get complicated quickly. The amount of remaining entitlement depends on the size of your existing VA loan and other factors. This is why it’s crucial to work with a knowledgeable loan officer who can calculate your remaining entitlement and advise you accurately.

Lender Overlays: What You Need to Know

Even though the VA allows jumbo loans with no down payment for those with full entitlement, individual lenders may have additional requirements or restrictions, known as lender overlays. These are rules lenders impose on top of the VA’s baseline guidelines.

Some common lender overlays include:

• Limits on the maximum loan amount they are willing to approve
• Additional down payment requirements for jumbo loans
• Stricter credit score or income requirements
• Restrictions on renovation loans, especially for jumbo properties

For example, a lender might offer VA renovation loans for standard amounts but refuse to offer renovation loans on jumbo VA loans. These overlays vary significantly depending on the lender, so shopping around and asking questions is essential.

Common Myths and Misconceptions

There’s a lot of misinformation online about VA jumbo loans, often from outdated or incorrect sources. Here are some myths I want to bust:

• Myth: You always need a down payment on VA jumbo loans.
  Fact: If you have full entitlement, you can get a VA jumbo loan with zero down payment.
• Myth: VA jumbo loans don’t exist.
  Fact: The VA has allowed jumbo loans for years, especially after the 2019 Blue Water Navy Act.
• Myth: All lenders treat VA jumbo loans the same.
  Fact: Lenders have overlays that vary widely. Some might not offer jumbo loans or might require down payments.

Because of these myths, it’s critical to rely on licensed professionals who understand VA loans and are up to date with the latest regulations.

What You Need to Qualify for a VA Jumbo Loan

While the VA doesn’t require a down payment for full entitlement jumbo loans, you still need to meet certain credit and income requirements.

• Credit Score: Lenders typically want to see a solid credit history, usually a score above 620, though this can vary.
• Residual Income: The VA requires that you have enough residual income after all debts and living expenses to ensure you can afford the mortgage.
• Debt-to-Income Ratio: While the VA doesn’t have a hard cap, lenders often prefer ratios below 41%, but exceptions can be made based on compensating factors.

Meeting these criteria along with having full entitlement means you can leverage the VA jumbo loan program to buy a high-value home with no down payment.

Working With a Trusted Loan Officer

Given the complexities of VA jumbo loans, entitlement calculations, and lender overlays, it’s essential to work with a loan officer who knows the ins and outs of the VA loan program.

A knowledgeable professional will help you:

• Determine if you have full or partial entitlement
• Calculate your remaining entitlement accurately
• Find lenders who offer VA jumbo loans with favorable terms
• Navigate credit and income requirements
• Understand potential down payment needs if you have partial entitlement

Don’t rely solely on internet articles or outdated blogs — always verify that your advisor is licensed and experienced in VA home loans.

Frequently Asked Questions

Can I buy any home with a VA jumbo loan?

You can buy any home as long as you qualify under VA guidelines, have full entitlement, and meet credit and income requirements. The VA doesn’t restrict the home price, but lenders may have their own limits.

What is full entitlement?

Full entitlement means you don’t have any other VA loans outstanding or foreclosures on your record at the time of closing. It allows you to access the full VA loan benefit, including no down payment on jumbo loans.

What if I have a VA loan on another property?

If you have a VA loan on another property that you’re still paying on or renting out, you likely have partial entitlement. This may require a down payment on your new jumbo loan depending on your remaining entitlement balance.

Do all lenders offer VA jumbo loans?

No, not all lenders offer VA jumbo loans or renovation jumbo loans because of their own overlays and risk assessments. It’s important to shop around and find lenders familiar with VA jumbo products.

How can I find out my VA loan entitlement?

You can request your Certificate of Eligibility (COE) from the VA or ask your loan officer to help determine your entitlement based on your loan history and VA records.

Final Thoughts

In summary, the VA jumbo loan program is a fantastic opportunity for veterans to purchase high-end properties without a down payment, provided they have full entitlement and meet credit and income qualifications. The 2019 Blue Water Navy Act was a game-changer, reforming VA entitlement rules and debunking many myths about jumbo loans.

However, the VA’s guidelines are just the starting point. Lenders may impose overlays, so working with an experienced and licensed loan officer is essential to navigate the process smoothly and secure the best possible financing.

If you have questions about VA loans or want to explore your options for buying a home — high-end or otherwise — don’t hesitate to reach out. I’m here to help you make your homeownership dreams a reality.

Contact Info:
Carlos Scarpero
Phone: 937-572-3713
Email: cscarpero@edgehomefinance.com
Website: scarpero.com