VA
Loan Limits

The VA loan limit refers to the maximum amount the Department of Veterans Affairs (VA) will guarantee for a home loan under its VA Home Loan program. These limits are crucial for veterans, active-duty service members, and eligible spouses who are looking to purchase a home using their VA benefits. While VA loans offer incredible benefits like no down payment and no private mortgage insurance (PMI), understanding the VA loan limits can help ensure a smoother home-buying process.

VA Loan Limits Pre-2020
Before 2020, VA loan limits were an essential factor in determining how much veterans could borrow without making a down payment. The VA used to guarantee loans up to a certain limit, which was typically aligned with the Federal Housing Finance Agency (FHFA) conforming loan limits. These limits varied by county, reflecting the local cost of living. In high-cost areas, the VA loan limit could be significantly higher than the baseline.

If a veteran wanted to purchase a home that exceeded the loan limit, they could still obtain a VA loan but were required to make a down payment on the portion of the loan that exceeded the limit.

 The Blue Water Navy Vietnam Veterans Act of 2019
A major change came with the Blue Water Navy Vietnam Veterans Act of 2019, which went into effect on January 1, 2020. This law removed the loan limits for eligible borrowers with full entitlement. This means that, as long as a veteran has full VA loan entitlement and qualifies for the loan amount based on their income and creditworthiness, they can borrow as much as their lender is willing to approve—without any mandatory down payment.

For veterans who have previously used their VA loan benefit and still have partial entitlement, the old loan limits may still apply. In such cases, if the borrower purchases a home that exceeds the loan limit for their area, they may be required to make a down payment on the difference between the loan limit and the total loan amount.

 Full vs. Partial Entitlement
Understanding the difference between full and partial entitlement is key when discussing VA loan limits:

– Full Entitlement: Veterans and service members who have never used their VA loan benefit or who have fully repaid a previous VA loan and had their entitlement restored are considered to have full entitlement. They are not subject to VA loan limits and can buy a home with no down payment, regardless of the purchase price, as long as they qualify for the loan.

– Partial Entitlement: Borrowers with partial entitlement have already used some or all of their VA loan benefit, but have not fully restored their entitlement. This often occurs when they still have an outstanding VA loan or have defaulted on a previous VA loan. In these cases, loan limits will still apply, meaning that for homes priced above the loan limit, they may need to make a down payment.

VA Loan Limits in 2025
While there is no loan limit for those with full entitlement, the 2025 VA loan limits for borrowers with partial entitlement are set by the FHFA. As of 2025, the baseline conforming loan limit is $806,500 for most of the U.S., but higher-cost areas now have limits up to $1,209,750. 

Veterans buying homes in these high-cost counties may still benefit from VA loans with low or no down payment, depending on their available entitlement. Additionally, jumbo VA loans—loans that exceed the conforming loan limit—are available, but these often come with stricter qualification criteria and higher interest rates.

– No loan limits for full entitlement: As of 2020, veterans and service members with full VA loan entitlement do not have loan limits. They can borrow as much as their lender approves, without needing a down payment.

– Loan limits for partial entitlement: Veterans with partial entitlement still need to consider VA loan limits, which vary by county.

– Loan limits for partial entitlement: Veterans with partial entitlement still need to consider VA loan limits, which vary by county. 

Partial entitlement VA loan limits are divided into two categories: standard loan limits and high-cost area loan limits. The standard loan limits apply to most counties in the United States and are calculated as a percentage of the national conforming loan limit, which is currently set at $806,500 for a one-unit property.

High-cost area loan limits, on the other hand, apply to counties with higher median home prices. These limits are calculated based on the median home price in the county and can be up to 150% of the national conforming loan limit.

High-cost area VA loan limits: Range from $806,500 to $1,209,750, depending on the county.

The VA loan program remains one of the most powerful home-buying tools available for veterans, with flexible options for both those with full and partial entitlement. Understanding how VA loan limits work is essential for making informed decisions when buying a home.