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In 2020, a new law got rid of loan limits on VA loans. However, how much you can borrow may still by limited based on your VA entitlement. Because the amount of your entitlement is tied to the VA's 25% guarantee for VA home loans, how much of it you have available can affect the amount of your home loan. The video below explains the details and provides examples of how this works.
As of 2020, loan limits no longer apply to VA loans for over $144,000, if you still have your full entitlement. Basically, this means you can get a loan at any amount a lender is willing to lend you, and the VA will guarantee 25% of it, without having to make a down payment.
*Your entitlement won't be automatically restored; you must request it. In addition, you are also allowed one time to request a restoration on a home paid in full that you haven't sold.
If you only have partial, or remaining, entitlement, you will be subject to VA loan limits based on the county loan limits set by the FHFA. In this case, if you want to buy a home above the loan limit, you may need to make a down payment. This is because most lenders require that your entitlement, down payment, or a combination of both covers at least 25% of your total loan amount.
*You can have your full entitlement restored ONCE in this situation, but after that your full entitlement cannot be restored unless you sell the home.
The current starting loan limits for borrowers with partial entitlement are listed below.
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