What Is the Maximum VA Loan Limit for a Home Loan?

A VA loan provides a significant benefit for eligible service members, veterans, and surviving spouses seeking to purchase a home. This government-backed mortgage often eliminates the requirement for a down payment, making homeownership more accessible. Understanding the parameters of these loans, particularly how maximum borrowing amounts are determined, is important for those looking to leverage this earned benefit.

The Concept of VA Loan Limits

In 2020, federal VA loan limits were eliminated for eligible borrowers with full entitlement. This means the Department of Veterans Affairs (VA) no longer imposes a federal cap on the loan amount for those who have never used their benefit or have fully restored it. The VA’s role involves guaranteeing a portion of the loan, which encourages lenders to offer favorable terms.

While the VA does not federally cap loans for those with full entitlement, this does not imply unlimited borrowing capacity. Lenders retain the discretion to determine the maximum loan amount an applicant qualifies for based on their financial profile.

For those with “partial entitlement,” specific limits still apply. Partial entitlement occurs when a portion of the VA loan benefit is tied to an existing VA loan, or if a previous VA loan was foreclosed upon or involved a short sale. In these cases, the maximum loan amount without a down payment is influenced by county loan limits, established by the Federal Housing Finance Agency (FHFA) for conforming loans.

Determining Your Maximum Loan Amount

For those with full entitlement, the maximum loan amount depends on the lender’s underwriting standards. Lenders assess a borrower’s financial capacity through various factors, including income stability, an acceptable credit score, and a manageable debt-to-income (DTI) ratio. Most lenders typically look for a minimum credit score around 620, though some may consider lower scores. Additionally, residual income, the money remaining after major expenses, is also considered. The property itself must also meet the VA’s minimum property requirements through an appraisal process.

For borrowers with partial entitlement, the maximum loan amount without a down payment directly incorporates county loan limits. The FHFA sets these conforming loan limits annually; for 2025, the standard limit for a single-unit property in most areas is $806,500. In designated high-cost areas, this limit can extend up to $1,209,750.

The VA guarantees 25% of the county loan limit, and if a borrower has used some entitlement, their remaining entitlement is calculated by subtracting the amount already used from this 25% guarantee. The maximum loan amount they can obtain without a down payment is generally four times their remaining entitlement. Should the desired loan amount exceed what the remaining entitlement can cover, a down payment would be required to make up the difference.

Utilizing and Restoring VA Loan Entitlement

A veteran’s VA loan entitlement is a lifetime benefit that can be used multiple times, provided certain conditions are met. When a VA loan is used, a portion of the entitlement becomes tied to that loan.

Full entitlement can typically be restored after a previous VA loan is fully paid off and the property sold. Another pathway is the “one-time restoration” option, allowing full entitlement restoration even without selling the property, provided the initial VA loan is fully paid off, often by refinancing into a non-VA loan. This specific restoration can only be exercised once.

It is also possible for veterans to have multiple VA loans simultaneously, particularly in situations like a Permanent Change of Station (PCS) order. In these cases, the remaining entitlement and the county loan limits will dictate the maximum amount available for the subsequent loan without a down payment.

The process of restoring entitlement generally involves submitting VA Form 26-1880, a Request for a Certificate of Eligibility (COE), along with proof of payoff or sale.