After serving in the military, a customer recently inquired about whether they could buy a home in Tenafly using a VA loan. The answer is yes, but there are several factors to consider.

The first is the loan limit. Since 2020, there has been no loan limit for veterans with full entitlement (va.gov). This means that theoretically, they can afford the high sale prices in Tenafly without a down payment. However, the absence of a loan limit and passing the lender's assessment are two separate issues, so income and debt ratios are still carefully scrutinized.

The second is the actual market value. According to Zillow, the typical home value in Tenafly is $896,668 in 2026, which has increased by 10.4% over the past year. Other estimates suggest that the median sale price could reach $1.71 million by July 2026. Within the neighborhood, properties in East Hill often exceed $3 million, while West Hill and downtown areas typically range from $1 million to $2 million, indicating significant variability. This means that the loan strategy can vary greatly depending on the area.

The third is the boundary between conventional loans and jumbo loans at this price point. Bergen County is classified as a high-cost area by FHFA, with a core loan limit of $1,209,750 in 2026 (FHFA). Since the median price in Tenafly already exceeds this threshold, most buyers who are not using VA loans will likely fall into the jumbo loan category. Jumbo loans often require a credit score of over 700 and a down payment of 10% to 20%, with more detailed documentation required compared to conventional loans.

The fourth is the funding fee. VA loans do not have PMI, but they do incur a funding fee ranging from 1.25% to 3.3% of the loan amount. If a down payment is made, this percentage can decrease, so even veterans should consider making a partial down payment if they have the cash available. For example, on a property priced around $1 million, the funding fee could vary by several thousand dollars, so it's advisable to include this in the closing cost calculations.

The fifth is property taxes. Tenafly is a neighborhood with steady demand due to its school district reputation, which also means a significant property tax burden. Veterans moving from out of state should be aware that their monthly payment estimates based on their previous residence may vary widely. School district boundaries change frequently, so it's important to verify the assigned school for the address before purchasing.

The sixth is the perspective of resale and investment. There are many cases where a buyer may need to relocate due to deployment or job changes within a few years after purchasing with a VA loan. In a neighborhood like Tenafly, where demand is steady, reselling may be relatively easier, but this can vary depending on market conditions, so it cannot be assumed that prices will always rise.

To apply for a VA loan, veterans must first obtain a Certificate of Eligibility. This can be done online, and since it may take time to receive, it's advisable to prepare this before starting the home search. Additionally, VA loans have specific appraisal criteria that may differ from standard appraisals.

In neighborhoods like Tenafly, where there is a wide range of property prices, even if a buyer qualifies for a VA loan, they may be required to make a partial down payment if the desired property exceeds the lender's assessment criteria. To prepare for such situations, it's helpful to discuss the maximum affordable amount with the lender in advance, which can help narrow down the property search. Buyers considering jumbo loans should also keep in mind that closing costs will increase proportionally to the sale price. For properties over $1 million, closing costs can amount to several thousand dollars, so cash should be set aside separately from the down payment.

In summary, Tenafly is a neighborhood where the advantages of VA loans are clearly evident, while jumbo loans become the default for conventional buyers. This article is not investment or legal advice, and it is recommended to consult with a mortgage professional before entering into any contracts.