VA loan limits determine the maximum amount the VA will guarantee to a lender without requiring a down payment. For 2026, the baseline limit for a one-unit home is $832,750, with higher-cost counties reaching up to $1,249,125.
These limits mainly affect veterans with partial entitlement, which means those who’ve used their VA benefit and haven’t had it fully restored. Veterans with full entitlement can borrow above these limits with zero down, as long as the lender approves the loan.
The 2020 Change That Eliminated Limits for Most Veterans
The Blue Water Navy Vietnam Veterans Act of 2019 fundamentally changed VA home loans. From January 1st, 2020, the law eliminated loan limits for Veterans with full entitlement.
Before this change, all VA borrowers faced county-based limits regardless of their entitlement status. Now, first-time VA loan users and those who have fully restored their entitlement can purchase homes at any price with zero down payment, if they qualify with their lender.
Veterans with partial entitlement, those who currently have an active VA loan or haven't fully restored their entitlement, still face county-based limits on zero-down purchases.
How Limits Are Calculated Annually
VA loan limits mirror conforming loan limits set by the Federal Housing Finance Agency (FHFA). The FHFA establishes these limits each year for mortgages purchased by Fannie Mae and Freddie Mac, and the VA adopts the same figures.
The Housing and Economic Recovery Act (HERA) of 2008 requires the FHFA to adjust limits annually based on home price changes. The agency reviews its House Price Index, which tracks average home prices nationwide, then adjusts the baseline limit proportionally.
For 2025, home prices increased 5.21 percent between the third quarters of 2023 and 2024. This raised the baseline limit from $766,550 in 2024 to $806,500 in 2025, and then it was raised to $832,750 for 2026.
The formula includes protections against market downturns. If home prices decline nationally, the limit doesn't decrease. It remains at the current level until prices recover and exceed their previous peak.
Baseline vs. High-Cost Area Limits
Most counties share the standard baseline of $832,750, but counties with significantly higher median home values have elevated limits.
High-cost designations apply where 115 percent of the local median home value exceeds the baseline. In these areas, the limit increases proportionally, capped at 150 percent of the baseline. For 2025, this ceiling is $1,249,125.
California counties including Los Angeles, Orange, San Francisco, San Mateo, and Santa Clara have the $1,249,125 limit. New York City metro counties (Bronx, Kings, Nassau, New York, Queens, Richmond, Suffolk, and Westchester) share this higher threshold. Parts of Colorado, New Jersey, and the Washington, D.C. metro area also qualify.
Alaska, Hawaii, Guam, and the U.S. Virgin Islands use $1,249,125 as their baseline for all single-family homes under special statutory provisions.
Understanding Full Entitlement
Veterans with full entitlement can use a VA home loan to purchase a home at any price, as long as they meet the lender’s qualification standards and the property appraises for the purchase price. You have full entitlement if you are a first-time VA loan user or if you have previously used a VA loan but have paid it off and had your entitlement restored.
Your Certificate of Eligibility (COE) will show your basic entitlement (typically $36,000) if no prior VA loans have been charged. This amount represents the VA’s guarantee to the lender and does not limit the total loan you can obtain.
Lenders still evaluate credit, income, debts, and assets to determine maximum loan amounts. If the appraisal comes in lower than the purchase price, the loan amount adjusts downward accordingly.
Calculating Remaining Entitlement with Partial Entitlement
Veterans with an active VA loan or who previously used their benefit without restoring it have partial entitlement. County loan limits determine their zero-down purchase threshold.
To calculate remaining entitlement:
Check your COE to find how much entitlement you've used. Look in the "Prior Loans charged to entitlement" section under "Entitlement Charged."
Look up the county loan limit where you plan to purchase. Use the One-Unit Limit even for multi-unit properties.
Multiply the county limit by 0.25 to calculate 25 percent. This represents the maximum VA guarantee available in that county.
Subtract your used entitlement from this figure. The result is your remaining entitlement.
Most lenders require a 25 percent VA guarantee, so they multiply your remaining entitlement by four to determine your zero-down maximum.
Example: You have $50,000 in entitlement tied to another property in a county with an $832,750 limit.
- $832,750 × 0.25 = $208,187 (maximum VA guarantee)
- $208,187 - $50,000 = $158,187 (remaining entitlement)
- $158,187 × 4 = $632,748 (maximum zero-down loan)
When Down Payments Are Required
Veterans with partial entitlement who want to exceed their zero-down threshold can use VA financing by making a down payment. The down payment covers the gap between the loan amount and the VA guarantee.
Lenders typically require that remaining entitlement plus the down payment equal at least 25 percent of the total loan amount.
Example: A Veteran with $158,187 in remaining entitlement wants to purchase an $800,000 home.
- The lender needs $200,000 in guarantee coverage (25 percent of $800,000)
- The Veteran's remaining entitlement provides $158,187
- Required down payment: approximately $41,813
Restoring Entitlement
Veterans can restore previously used entitlement by selling the property financed with their VA loan and paying off the loan in full. Once complete, the full entitlement amount becomes available again.
Alternatively, if another eligible Veteran assumes the existing VA loan through the property sale, the original borrower's entitlement can be released and restored. This requires lender approval and VA authorization.
Veterans who had a foreclosure or claim on a previous VA loan may face additional requirements before restoring entitlement, including repayment of any loss the VA incurred.
Impact on Multi-Unit Properties
The limits discussed here apply to single-family, one-unit properties. VA loans can also finance multi-unit properties up to four units, provided the borrower occupies one unit as their primary residence.
Limits for two-, three-, and four-unit properties are higher, reflecting increased property values. These limits also adjust annually based on FHFA calculations.
Market Implications
Rising limits reflect broader housing market trends. The 5.2% increase for 2025 mirrors home price appreciation. This adjustment maintains the VA loan program's accessibility, particularly in markets where prices have climbed significantly.
In high-cost areas, higher limits mean greater purchasing power without large down payments. More properties fall within the zero-down range, so eligible borrowers have more options.
The elimination of limits for borrowers with full entitlement has proven especially beneficial in expensive markets. Veterans in San Francisco, New York, and Seattle can now compete for homes at any price without mandatory down payments.
Understanding how VA loans work will help you make strategic homeownership decisions. Whether you're a first-time homebuyer with full entitlement or managing partial entitlement while planning your next move, knowing how loan limits work puts the power to maximize your benefits in your hands.
FAQs
Do VA loan limits affect how much I can borrow?
Only if you have partial entitlement. Veterans with full entitlement face no VA-imposed limits and can borrow any amount their lender approves, provided the appraisal supports the purchase price. Those with partial entitlement can borrow up to their county's limit without a down payment or exceed it with an appropriate down payment.
How do I know if I have full or partial entitlement?
Check your Certificate of Eligibility. Full entitlement shows basic entitlement of $36,000 with no prior loans charged. Partial entitlement shows amounts in the "Entitlement Charged" column. Request your COE through the VA's online portal, your lender, or by mail.
Can I use a VA loan if I exceed my county's loan limit?
Yes. Veterans with partial entitlement can still use VA financing for homes priced above their zero-down threshold by making a down payment to cover the portion exceeding the VA's guarantee amount.
Do VA loan limits change every year?
Yes. The Federal Housing Finance Agency adjusts conforming loan limits annually based on home price changes measured by the FHFA House Price Index, and the VA adopts these limits. New limits take effect January 1st and apply to loans closed on or after that date.
What if I'm stationed in a high-cost area but buying in a standard-cost area?
Limits are based on where the property is located, not where you're stationed. If you're buying in a county with the standard $806,500 limit, that's the limit that applies, regardless of where you currently live.
