VA Loan Limits no longer apply to qualified veterans with their full VA loan entitlement! Veterans with diminished VA loan entitlement must still adhere to VA loan limits. Enter your city and state below to find the VA Loan limit amount for your area or learn more about VA loan limits changes in 2021.
VA loan limits determine how much a veteran with reduced entitlement can borrow before needing to factor in a down payment. VA loan limits vary by county and currently range from $548,250 to $822,375.
While qualified veterans with their full entitlement can borrow as much as a lender is willing to extend, those with reduced or diminished entitlement are bound to VA loan limits. Less-than-full entitlement is typically due to having one or more existing VA loans or because of default on prior VA loan.
The standard VA loan limit is $548,250 for most U.S. counties in 2021, an increase from $510,400 in 2020. For more expensive housing markets in the continental U.S., VA loan limits reach all the way up to $822,375 for 2021, up from $765,600 in 2020.
Remember, these limits do not represent a cap on borrowing. Veterans with their full entitlement can get as much as a lender is willing to give them without needing a down payment. But veterans with one or more active VA loans or who have defaulted on a previous VA loan will encounter the limits, which will in part determine their zero-down buying power.
Let’s assume you’re currently using $60,000 of your VA loan entitlement and want to purchase a new home in a standard cost county ($548,250 loan limit). Because the VA guaranties a quarter of the loan amount, the maximum entitlement in this county is currently $137,062.
Generally, here’s how the loan limit calculations would look:
That $308,250 figure represents how much you could borrow before needing to make a down payment. This veteran could buy with $0 down all the way up to $308,250. Purchasing above that mark would require a down payment equal to 25 percent of the difference between that ceiling and the purchase price.