2019 VA Loan Limits

VA Loan Limits Explained



With every VA loan, the Department of Veterans Affairs agrees to back a portion of the loan, usually 25%, in case the homeowner defaults. This guarantee is one of the main reasons why VA loans don't require a down payment. It essentially serves as a substitute.

However, the guarantee is not without its limits. While the VA doesn't cap how much a veteran can borrow, they do limit how much they are willing to guarantee. Once a loan reaches this limit, the VA will not guarantee any additional amount.

How Loan Limits Actually Work

Here's an example: in 2019, most counties have a loan limit of $484,350. Up to this point, the VA will guarantee 25% of the loan. So, if you get a $300,000 loan in Autauga County, AL, the VA will guarantee $75,000. And if you get the exact limit—$484,350—they'll still guarantee 25%, which is $121,087.50.

What Happens If You Exceed the Loan Limit

Now, let's say you decide to buy a $500,000 home in Autauga County. Since that's above the maximum loan limit for the area, the VA will still only guarantee $121,087.50. This leaves a gap in the portion of the loan that's being guaranteed.

In order to cover this gap, the lender may ask that you put some of your own money down. Typically, they'll ask you to cover 25% of the difference between your loan and the loan limit. So for your $500,000 in Autauga County, the difference is $15,650. If you multiply that by 0.25, you'll get what the lender will ask you to put down: $3,912.50.

Most VA Loans Are Well Below the Limit

If you're worried about having to put together a down payment, you can stop stressing.

The average VA loan is only $255,000, so the likelihood that you'll find and fall in love a home beyond the VA's loan limits is quite slim.

VA Loan Limits Can Vary

Loan limits are determined geographically and are usually based on the maximum conforming loan limits for conventional loans in each county.

We already mentioned that for most counties in the United States, the limit is set at $484,350. However, in high cost areas, the loan limit is actually higher. In fact, there are over 100 counties—including ones in Alaska, Hawaii, California, and other high cost areas—where the limit is as high as $726,525.

Increased limits in more expensive areas increase a veteran's likelihood of being able to use their hard-earned VA benefits to purchase a home without having to come up with a down payment. Essentially it levels the playing field.

If you're thinking about purchasing a house in 2019, the FHFA's full list of loan limits will show you how much you can borrow for a VA loan in each county without needing a down payment.

There are many benefits available exclusively to servicemembers. Click on your state below to find out!

AL AK AZ AR CA CO CT DE FL GA HI ID IL IN IA KS KY LA ME MD MA MI MN MS MO MT NE NV NH NJ NM NY NC ND OH OK OR PA RI SC SD TN TX UT VT VA WA WV WI WY

Why the New Loan Limits Make 2019 the Perfect Time to Buy a Home

2019 is the third year in a row that housing prices have increased. This is an indicator of a strong, healthy housing market and an economy that is finally recovering from the 2008 housing crisis.

However, 2019 is also at an interesting intersection between a booming economy and increasing rates. Starting in 2018, mortgage rates also began to rise from their historic lows, and this trend is predicted to continue through 2020.

With the increase of the VA loan limits for 2019, together with the forecasted interest rate hikes, right now is a prime time for veterans to afford a more expensive home while rates are still reasonable.

To take advantage of your new, higher VA loan limit and current competitive rates, contact one of our expert VA loan officers at (866) 569-8272.