You're being quoted interest rates on "Jumbo" loans and this is the same reason the VA loan doesn't really work well, as the amount they'll lend you is less than what you're ideally looking for.
I would not waste time with any of the big banks. (Wells Fargo, BoA, PSC, Chase etc, ) their the least competitive and hardest to deal with any more as they all impose additional requirements not mandated by the secondary market.
I would suggest if you have the opportunity to speak with a Credit Union. If this won't work I would suggest trying a lender such as New American Mortgage or a Mortgage Broker as some others have suggested.
At New American you could contact Justin Burris, 919-535-4760. Don't worry that he's based in Raleigh NC, they lend throughout the country. For a top notch mortgage broker try Todd Barbour - 919-459-1311.
You want to explore your options carefully and both these guys are extremely experienced, super competitive and will take the time to explain to you the various options available to you. As Robin Silverberg below already mentioned depending on the specific type of property you're looking to purchase (Co-op, Condo, etc) certain loans may not be available to you.
I wish you all the best.