Your dream house might be pretty expensive. If you have the means to pay back the mortgage for that home, it could be on the table for you. But you should be aware that borrowing a larger sum can come with some extra strings, and extra costs. 

In the mortgage world, lenders call these kinds of mortgages jumbo loans. You can get VA jumbo loans, which are backed by the Department of Veterans Affairs (VA), or you can get a jumbo loan without a government agency backing it. That’s called a conventional jumbo loan. 

 If you’re thinking about buying an expensive house, you need to know about these kinds of mortgages. 

Breaking down the basics of jumbo loans

Mortgage lenders are in the game of risk management. Government agencies that get involved with home loans are, too. That’s why you need to show proof of income and your credit score when you’re getting a mortgage. The lender and any government entity involved wants to make sure you’re pretty likely to repay what you borrow.

As part of that risk management game, the Federal Housing Finance Agency (FHFA) sets location-based limits for conforming loans. Essentially, those limits say that houses in that area should cost up to that number. 

More technically speaking, the FHFA’s limit caps what Fannie Mae and Freddie Mac can buy. That doesn’t directly affect you, but it does change things for your lender. Without those government-sponsored enterprises in play, they have fewer options for making money off the mortgage. And that means jumbo loans tend to come with added requirements. (They’re looser with VA jumbo loans than with conventional jumbo loans, though.) 

So, do you need a jumbo loan? That depends on the cost and location of the house you want to buy. 

The limit for conforming loans 

For 2026, the conforming loan limit for most of the country is $832,750. For most counties, anything above that sum counts as a jumbo loan. 

The FHFA does adjust the limit based on local cost of living. For more expensive areas, the limit’s $1,249,125 for 2026.

You can figure out what applies in your area (or in the area in which you want to buy) using this FHFA map. 

If you want to borrow more than the FHFA’s limit for the applicable area, you’ll need a jumbo loan. But the way that loan works depends on if you’re getting one backed by the VA or not. 

VA jumbo loans

Back in the day, VA borrowers couldn’t exceed their county’s loan limit. Now, though, if you have full entitlement, there’s technically no cap on how much you can borrow with a VA loan. But if you exceed the county loan limit, your mortgage will be classified as a jumbo loan. 

That means more risk for the mortgage lender. As a result, the 0% down payment that usually comes with fully entitled VA loans might go out the window. To offset the added risk, the lender might ask you to put at least some money down. They also might (read: likely will) charge you a higher interest rate. 

The other thing you should know is that all VA loans come with a VA funding fee. That’s 1.25–3.3% of the total loan amount depending on your situation (e.g., if you’ve had a VA loan before). Because you’re borrowing more money, that funding fee can get pretty steep. 

Finally, be advised that just because there isn’t technically a limit on VA loans doesn’t mean you can borrow as much as you please. Lenders cap how much they’ll offer based on factors that are specific to you. Some things that limit how much you can borrow, even with a jumbo VA loan, include:

• How much entitlement you have left (you can borrow more, but you’ll need to put up a down payment for it)
• Your residual income (how much money you would have left over after paying your mortgage and other financial obligations)
• Your financial profile (i.e., credit score, assets)

Basically, the lender won’t offer you more than they think you’ll be able to repay. 

Conventional jumbo loans

If you’re not getting a loan backed by a government agency like the VA, it’s a conventional loan. If it’s over the conforming loan limit, it’s a jumbo loan. 

Conventional jumbo loans come with much more stringent requirements than conventional loans under the local FHFA limit. You’ll usually need to put up a bigger down payment (a lot of lenders want to see 20% or more), pay a higher interest rate, and still show you have plenty of cash reserves. 

Comparing and contrasting VA jumbo vs. conventional jumbo loans

If you think you’ll need a jumbo loan and you can qualify for a VA-backed mortgage, weigh your options. To help you compare these two jumbo loan options, let’s explore some key details.

Generally, if you can qualify for a VA jumbo loan, it’s a better deal than a conventional jumbo loan. The VA’s backing for mortgages is one of the biggest perks of military service.

If you want to start comparing VA jumbo loan rates, we’ve got you covered.