Understanding VA Loan Limits for 2025

What To Know About VA Home Loan Limits Before You Buy

VA loans allow eligible Veterans, active-duty service members, surviving spouses, and Reserve and National Guard members to purchase a home with no down payment required.

But how much you can borrow with this benefit isn't necessarily unlimited. That's where VA home loan limits come in to help determine whether you'll need a down payment based on your VA entitlement and the location of the home you're buying. Let's explore VA loan limits to help you understand if they apply to you.

What Are VA Home Loan Limits?

VA home loan limits are the maximum loan amounts lenders may be willing to finance without requiring a down payment, based on the Department of Veterans Affairs (VA) guaranty. The VA doesn't limit the amount you can borrow for your home loan. In the past, however, the VA capped its loan guaranty amount, limiting the loan amount you could get with a 0% down payment.

The VA has since eliminated the guaranty amount limits when you have your full VA home loan entitlement, which means eligible borrowers can now get approved for a VA loan with no down payment and no maximum home price. However, lenders may still limit the mortgage amounts they offer you, based on your income, finances, credit score, and other factors.

The new VA loan limit rules don't guarantee you'll be approved for a larger mortgage—they just removed the old guaranty limits for full VA home loan entitlements. For eligible borrowers with remaining entitlement, loan limits still determine how much of the loan the VA will guarantee.

How VA Mortgage Loan Limits Are Determined

VA home loan limits are based on county loan limits, published by the Federal Housing Finance Agency (FHFA). Standard counties share a baseline limit of $806,500 for single-family homes, while high-cost counties have higher limits of up to $1,209,750 to reflect local housing prices.

You can check out the complete list of the FHFA's conforming loan limits to see which VA loan limit applies to your county.

VA Loan Limits for Full Entitlement

Full entitlement means that if you don't have an active VA-backed loan, you can use your full benefits when you're applying for a mortgage, and you're not subject to VA loan limits. You have full entitlement if:

• You've never used your loan benefit before.
• You've paid off a previous VA loan and sold the house.
• You've repaid the VA in full after a foreclosure or short sale.

When you have your full entitlement and apply for a loan of $144,000 or less, your Certificate of Eligibility (COE) could say, “This Veteran's basic entitlement is $36,000.” When you have used your full entitlement by taking out a loan greater than $144,000, your COE will say, “This Veteran's basic entitlement is $0.” At that point, you can still get a VA loan, but you will be subject to VA loan limits.

VA Home Loan Limits for Partial Entitlement

VA loan limits apply when you'd like to get a VA loan using your partial (remaining) entitlement. You have remaining entitlement you can use on a second VA loan if:

• You have an active VA loan you're still paying back
• You've fully paid off a previous VA loan for a home that you still own

In these cases, you can still buy a home with a loan above the county's loan limit, but you may also need to make a down payment. See the VA website for more information.

VA Mortgage Loan Limit FAQs

Here are some answers to questions you may have when considering VA home loan limits:

What's the Maximum You Can Borrow with a VA Loan?

There isn't a cap on what you can borrow with a VA loan if you have full entitlement. When using remaining entitlement, you may still be able to get a loan above your county's limits. However in that case, you'll likely need to make a down payment.

Can VA Loan Limits Change?

Yes. VA loan limits typically change each year alongside the FHFA conforming loan limits they're based on. These limits increase mainly to keep pace with rising home prices. For example, the standard conforming loan limit for single-unit homes increased from $647,200 in 2022 to $726,200 in 2023, and then to $766,550 in 2024. It is now $806,500 in 2025.

What Are the Maximum VA Loan Limits for Refinances?

When you use a VA IRRRL to refinance your home, you'll be limited to your existing VA loan balance, plus fees that can be rolled into your new loan amount. These can include up to two discount points and the VA funding fee, which, for IRRRL refinances, is currently set at 0.5%.

A Summary of VA Loan Limits

Eligible borrowers with full entitlement can use a VA loan to finance a home of any price without a down payment. If you have partial entitlement, county loan limits help determine how much the VA will guarantee and whether you'll need to contribute a down payment.

Understanding your entitlement status can give you more confidence as you plan your next home purchase. If you're unsure how VA loan limits may affect you, Freedom Mortgage can help you explore your loan options and guide you through the application process. Get started today to use your hard-earned VA benefit.