An Explanation of VA Loan Limits

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.

Full Entitlement

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.

According to the VA's website, you have full entitlement if you've:

  • Never used your VA home loan benefit
  • Sold the property financed with a VA loan and paid the loan off in full*
  • Foreclosed or done a short sale on a property you used a VA loan with, and repaid the VA in full

*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.

Partial Entitlement

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.

According to the VA's website, you may have partial entitlement if you:

  • Are still making payments on an active VA loan
  • Refinanced your VA loan into a non-VA loan and still own the home
  • Had a compromise claim (or short sale) on a previous VA loan and didn't repay the VA in full
  • Foreclosed on a previous VA loan and didn’t repay the VA in full
  • Transferred your home's title to the bank that holds your previous VA mortgage as part of a deed in lieu of foreclosure
  • You paid a previous VA loan in full and still own the home*

*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.

State VA Loan Limits in 2020

The current starting loan limits for borrowers with partial entitlement are listed below.

State: Loan Limits Starting At: Link:
Alabama $510,400 See all Alabama loan limits >>
Alaska $510,400 See all Alaska loan limits >>
Arizona $510,400 See all Arizona loan limits >>
Arkansas $510,400 See all Arkansas loan limits >>
California $510,400 See all California loan limits >>
Colorado $510,400 See all Colorado loan limits >>
Connecticut $510,400 See all Connecticut loan limits >>
Delaware $510,400 See all Delaware loan limits >>
Florida $510,400 See all Florida loan limits >>
Georgia $510,400 See all Georgia loan limits >>
Hawaii $765,600 See all Hawaii loan limits >>
Idaho $510,400 See all Idaho loan limits >>
Illinois $510,400 See all Illinois loan limits >>
Indiana $510,400 See all Indiana loan limits >>
Iowa $510,400 See all Iowa loan limits >>
Kansas $510,400 See all Kansas loan limits >>
Kentucky $510,400 See all Kentucky loan limits >>
Louisiana $510,400 See all Louisiana loan limits >>
Maine $510,400 See all Maine loan limits >>
Maryland $510,400 See all Maryland loan limits >>
Massachusetts $510,400 See all Massachusetts loan limits >>
Michigan $510,400 See all Michigan loan limits >>
Minnesota $510,400 See all Minnesota loan limits >>
Mississippi $510,400 See all Mississippi loan limits >>
Missouri $510,400 See all Missouri loan limits >>
Montana $510,400 See all Montana loan limits >>
Nebraska $510,400 See all Nebraska loan limits >>
Nevada $510,400 See all Nevada loan limits >>
New Hampshire $510,400 See all New Hampshire loan limits >>
New Jersey $510,400 See all New Jersey loan limits >>
New Mexico $510,400 See all New Mexico loan limits >>
New York $510,400 See all New York loan limits >>
North Carolina $510,400 See all North Carolina loan limits >>
North Dakota $510,400 See all North Dakota loan limits >>
Ohio $510,400 See all Ohio loan limits >>
Oklahoma $510,400 See all Oklahoma loan limits >>
Oregon $510,400 See all Oregon loan limits >>
Pennsylvania $510,400 See all Pennsylvania loan limits >>
Rhode Island $510,400 See all Rhode Island loan limits >>
South Carolina $510,400 See all South Carolina loan limits >>
South Dakota $510,400 See all South Dakota loan limits >>
Tennessee $510,400 See all Tennessee loan limits >>
Texas $510,400 See all Texas loan limits >>
Utah $510,400 See all Utah loan limits >>
Vermont $510,400 See all Vermont loan limits >>
Viriginia $510,400 See all Virginia loan limits >>
Washington $510,400 See all Washington loan limits >>
West Virginia $510,400 See all West Virginia loan limits >>
Wisconsin $510,400 See all Wisconsin loan limits >>
Wyoming $510,400 See all Wyoming loan limits >>
District of Columbia $765,600 See all District of Columbia loan limits >>

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