Current VA loan limit guidelines
Quick insights
- If you have your full VA entitlement, you don’t have a VA loan limit. If you have remaining entitlement, your VA loan limit is based on the county conforming loan limit (CLL) where the property is located.
- Even without a VA loan limit, to get a loan that exceeds the CLL, you’ll need to find a lender who will issue a VA jumbo loan, which may come with stricter requirements.
- In most counties, the CLL is $806,500 for a one-unit property. In high-cost areas, it’s $1,209,750.
The U.S. Department of Veterans Affairs (VA) doesn’t lend money for VA loans. Instead, it guarantees a portion of the loan to reduce risk for lenders. The term “VA loan limit” technically refers to the maximum amount the VA will pay your lender if you default on the loan. For lenders, this affects the size of the loan they can approve.
Do VA loans have limits?
The short answer is that it depends on how much entitlement a veteran has available. If you have your full entitlement, you don’t have a home loan limit. The VA will back any loan your lender approves you for, meaning they’ll pay up to 25% of the loan value to your lender if you default. This security allows lenders to offer perks like no down payment and competitive rates.
If you have remaining entitlement, you do have a VA loan limit. The limit is based on the county loan limit where the property is located. If you default on the loan, the VA will pay up to 25% of the county loan limit, minus how much of your entitlement has already been used.
Full entitlement vs. remaining entitlement
According to the VA, you have full entitlement if you meet any of the following requirements:
- You never used your home loan benefit.
- You paid a previous VA loan in full and sold the property. There is a one-time restoration available if you paid your VA loan without disposing of your property; you can discuss with your lender.
- You used the home loan benefit but had a foreclosure or compromise claim and repaid the VA in full.
If you’re still repaying a VA loan, you have remaining entitlement. If you’ve paid off your mortgage but still own a home you purchased with a VA loan you may have remaining entitlement. VA loan limits apply when you have remaining entitlement.
If you’re unsure whether you have full or remaining entitlement, you can contact your lender. They should be able to provide guidance.
How do VA home loan limits work?
The VA loan limit is how much the VA will pay your lender if you default on your loan. That’s why lenders can issue big enough loans for veterans to purchase a home without requiring a down payment. If you have full entitlement, there’s no VA loan limit.
However, that doesn’t necessarily mean you can get approved for a loan of any size. VA-approved lenders often adhere to the conforming loan limit (CLL). These guidelines, set by the Federal Housing Finance Agency (FHFA), dictate the county loan limits. To get a loan that exceeds the CLL, you need to find a lender willing to issue a jumbo loan.
Conforming loan limits are usually updated every November for the following year.
VA jumbo loans
A VA jumbo loan is a VA-backed mortgage that exceeds the CLL. The baseline CLL value is $806,500 for single-unit properties. The limit is higher in high-cost areas, which is why it varies by county. If you live in a baseline county and secure a VA loan worth more than $806,500, it’s a VA jumbo loan. There’s no official VA loan max. Lenders can set their own jumbo loan limits.
Lenders may have stricter approval requirements for VA jumbo loans. Here are some potential examples:
- Higher credit score requirements
- Down payment requirement for the portion of the loan that exceeds the CLL
- Stricter debt-to-income (DTI) ratio standards
The specifics will vary by lender, so if you’re interested in a VA jumbo loan, contact the lender for more details.
VA loan limits by county
Most counties in the United States fall into the national baseline category for the CLL. If you live in a baseline county, the CLL is $806,500 for one-unit properties. In high-cost areas, the CLL is set at 150% of the baseline limit. That comes to $1,209,750 for one-unit properties. For details, you can look up the CLL in your countyOpens overlay.
In summary
If you have your full entitlement, the VA will back your loan regardless of the size. However, if you want to secure a loan worth more than the CLL where the property is located, you’ll need to find a lender willing to issue a VA jumbo loan. That may come with some additional requirements.
