Important points
For fully qualified eligible veterans, there are no restrictions on VA loans.
VA loan limits apply to the amount VA guarantees, not how much a lender can borrow.
VA loan limits range from $806,500 to $1,209,750, depending on the location of the property.
VA loan limits were removed in 2020. This means that VA loan borrowers with full title can borrow up to the maximum amount allowed by their lender. However, VA loan limits still apply to borrowers who do not have full title.
What is the VA loan limit?
The VA loan limit is the maximum mortgage amount that the U.S. Department of Veterans Affairs (VA) will guarantee for a VA loan to a lender. If you take out a VA loan and stop making payments (known as defaulting), the VA guarantees to pay your losses to the lender up to a certain amount.
What is the limit for a VA loan if I have full title?
In 2020, the Veterans Administration eliminated VA lending limits on home loans for fully qualified veterans, military personnel, and surviving spouses. According to the VA, you have full rights if you meet at least one of the following criteria: That means you can use the entire right.
- I have never taken advantage of VA home loan benefits.
- I paid off my previous VA loan in full and sold the property.
- You took advantage of VA mortgage benefits, but there was a foreclosure or short sale and you paid off your VA in full.
Borrowers with this level of entitlement do not have to make a down payment, and if the mortgage is over $144,000, VA guarantees up to 25 percent of the VA loan to the mortgage lender in the event the borrower defaults. If the mortgage is less than $144,000, the VA will guarantee up to $36,000 for those entitled to the full amount.
When do VA loan limits apply?
VA loan limits apply while eligibility remains. This means that a portion of your eligible VA coverage amount has already been utilized. According to the VA, you may fall into this category if:
- Have a valid VA loan
- Paid off your previous VA loan in full and still own the property
- If you refinance your VA loan to a non-VA loan, you still own the property.
- If you have a short sale, foreclosure or deed in lieu of foreclosure and you do not repay the VA in full.
Loan limits for VA borrowers who remain entitled are based on the county in which the borrower resides. If a borrower defaults, the Veterans Administration will insure the lender only up to 25 percent of the county limit minus any entitlements already used. Some borrowers who fall into this category may be required to make a down payment.
VA loan limits by county
For borrowers with title remaining, the VA loan limit varies by county and is the same as the Federal Housing Finance Agency (FHFA) compliant loan limit. This limit is based on the median home price in each county. Each state’s loan limits adjust annually, are detailed by county, and apply from one unit (single-family home) to four-unit residences.
$806,500
2025 Compliant Loan Limits in Most Continental U.S. Locations
VA Loan Limit Examples
Let’s say you’re buying a home in a county where the loan limit is $806,500 and you’ve already used $50,000 of your entitlement.
Remember, the VA guarantees up to 25% of the county’s loan limit (in this case $201,625). You must receive the difference between the rights you are using ($50,000) and the 25 percent guarantee ($201,625). This equates to $151,625.
From there, most lenders will limit you to four times that amount. In this example, the maximum amount you can borrow without a down payment is $606,500, or four times $151,625. If you want to borrow more than that, you will need to make a down payment. You will also have to cover closing costs.
What VA loan limits mean for you
The VA loan limit does not necessarily determine the amount you can borrow to finance your home. It’s up to the mortgage lender and it’s up to the VA and the mortgage lender to qualify within the scope of their business. Rather, the VA loan limit indicates how much the VA will guarantee to the lender. If you’re approved for a larger mortgage ($144,000 or more), you’re free to borrow more than these limits, but you may need to make a down payment to do so if you’re not entitled to the full amount .
There is no cap on the size of a zero down payment VA loan for first-time borrowers, as VA loans no longer have a restriction on fully vested borrowers. However, the VA funding fee that most borrowers must pay to obtain a VA loan will still apply. Keep in mind that even if you qualify for the full amount and aren’t subject to loan limits, that doesn’t necessarily mean you’ll get the size of VA loan you want. Lenders must evaluate your credit history, income, and assets in order to approve a loan of a certain amount.
You can use Bankrate’s VA Loan Calculator to estimate your monthly payments based on your loan amount, loan term, and interest rate.
