How VA Loan Limits Work

VA Loan Limits Explained By America's #1 VA Loan Officer

VA loans are packed with benefits, but one of the most confusing areas is the question of "loan limits." To make it simple, VA loans don’t always have loan limits—but there’s some fine print. Whether you're a new VA buyer or already own a VA-backed home, understanding your entitlement is key to unlocking the full potential of your benefits.

Let's break it down so you know exactly what to expect.

No VA Loan Limits with Full Entitlement

If you have full VA entitlement—meaning none of it is being used on another home or lost due to a foreclosure or short sale—here’s the deal: there are no loan limits. You read that right.

Since Jan 1, 2020, thanks to the Blue Water Act, VA no longer caps the loan amount you can get. So, whether you’re eyeing a $300,000 home or a $4,000,000 home, you can do it with zero down payment. Of course, as with any loan, you will need to qualify based on your credit score and debt to income. But when it comes to a maximum loan amount with full entitlement? The sky’s the limit.

Many lenders still do not realize this rule change was made in 2020. If you're hearing that you need to make a down payment and you are not using any of your entitlement already, it's possible your lender is using outdated info. Yes, even after 4 years!

Bottom line: If you have full entitlement, there are no VA loan limits.

What if You’ve Used Part of Your Entitlement?

Here’s where things get a bit trickier. If you currently have a VA loan—maybe on a $200,000 house—it doesn’t mean you’re out of luck if you want to buy another property with a VA loan.

When part of your entitlement is tied up, the lender has to calculate your remaining loan eligibility. We use what we lovingly call a Max Mortgage Worksheet. This is where the local loan limits for conventional loans come into play.

Conventional Loan Limits and VA Loans

Although VA loan limits don’t apply if you have full entitlement, things change when some of your entitlement is in use. In that case, the lender uses your county’s conventional loan limit to determine how much you can borrow with zero down payment.

For 2024, the base loan limit is $766,550. However, in high-cost areas, this number can go much higher. Places like Los Angeles, San Francisco, or parts of New York have limits that exceed a million dollars. If you're eyeing a pricier home in one of those counties, you might not need much—if any—money down, even if part of your entitlement is used.

It’s worth shopping around too. If you’re on the border of two counties and one has a higher loan limit, you could potentially qualify without a down payment by simply buying in the higher-cost area.

This is something to make sure your lender understands and is discussing with you. I have seen far too many instances where a lender did not know how this worked and the buyer was pushed into a less favorable loan because the lender did not understand VA. You need to make sure you are working with a pro.

Yes—You Can Own Multiple VA-Backed Homes

Many people don’t realize this, but you can have multiple homes backed by your VA entitlement. Of course, whether you can do so with zero down payment comes down to the max mortgage calculation.

For example, you might have a VA home already, but if you’re qualified according to your entitlement you could purchase another home with no down payment. I see it all the time especially as active military members PCS around the country. I have some clients who have as many as 4 VA loans at the same time. It is all about entitlement.

Wait Until 2025 for Higher Loan Limits?

Here’s a quick tip: If you’re currently buying a house and your lender says you need to put money down based on the loan limits, but you know the 2025 limits will be higher, you’re probably thinking "Can I use those new limits now?" Unfortunately, no, you’ll have to wait until January to benefit from increased loan limits. At this moment we are expecting the base 2025 loan limit to be increased to 802,650.

So, if you're not in a rush, holding off might be worth it depending on where you're buying and how much entitlement you have left.

The Importance of a Knowledgeable Lender

I cannot stress this enough, make sure you're working with a lender who thoroughly understands the VA loans.

I’ve seen cases where veterans are talked into putting thousands down because their lender didn’t crunch the numbers correctly or understand guidelines. Don't liquidate your savings or tap into funds like a 401(k) unless absolutely necessary.

Final Thoughts

The rules around VA loan limits can definitely seem confusing, especially if you’ve already used part of your entitlement. But here’s the simplest way to break it down:

·         Full entitlement? You can borrow as much as the lender is willing to give you—no loan limit and no down payment. This will vary by lender so shop around.

·         Partial entitlement? Your borrowing power will be based on your county’s conventional loan limits and what's remaining of your VA entitlement.

Whether you're thinking about your first VA-backed mortgage, buying a second home using VA, or selling and starting fresh, it's important you work with a lender who understands the ins and outs of VA loans. Make sure they’re using accurate 2024 numbers and when we hit 2025 make sure they are using accurate 2025 numbers. This is critical so you do not end up having to put money down when you shouldn’t need to.

If you’ve got questions, thoughts, or need guidance with your VA loan, reach out. We do this day in and day out, and I’m more than happy to walk you through your options. Licensed in 48 states you can get me and my team at 786-933-2077. We waive our lender fee on all VA loans:)

All my best,

Jen

Jennifer Beeston

SVP Mortgage Lending @ Guaranteed Rate

Phone: 786-933-2077

Beeston@rate.com

Apply For Mortgage: www.zerostressmortgage.com

Resources To Learn More:

Youtube Thousands of Mortgage and Real Estate videos: www.youtube.com/jenniferbeeston

Free VA Loan Course: www.nostressva.com

About The Author:

Jennifer Beeston is a nationally known mortgage originator who is known for her ability to make the mortgage process easy to understand and zero stress.  Featured in articles by US News, Business Insider, TIME, NBC news and countless others, Jennifer is a vocal advocate for mortgage transparency and consumer empowerment.  You can find her on Youtube where she has created a library of mortgage education so that everyone can understand mortgages and obtain the dream of home ownership.  Her passion is empowering and educating Americans and helping them get HOME. She is ranked as the #1 VA Loan Officer* in America and is licensed in 48 states to do mortgages.  She has been a top 1% lender since 2016 and offers VA, Conventional, FHA and Jumbo mortgages.  She is also the author of Brainhacked, which is a modern guide for saving and protecting your money in a tech based world. #jenniferbeeston #VAloan

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