Did you know eligible Veterans and others can borrow any amount with a VA loan? If you meet the VA loan rules, you can do so without a down payment. This is great news for buying a home.
Key Takeaways:
- Full entitlement means you can borrow any amount without needing to put money down.
- If your loan is over $144,000, the VA will guarantee 25%.
- Lenders check your credit, income, and assets before approving your loan.
- Your home’s location decides the loan limits by looking at your remaining entitlement.
- Even though there’s no set limit to borrow, there is a max the VA will guarantee.
How does entitlement affect loan limits?

If you have remaining entitlement, the VA sets your loan limit based on your county. They will guarantee 25% of this limit. This is minus the entitlement you’ve already used if you don’t pay back the loan. Here’s why it matters: you can get a new VA home loan if you have enough remaining.
The remaining entitlement comes from a few situations:
- Having an active VA loan
- Paying off a previous VA loan but still owning the home
- Switching a VA loan to a non-VA loan but still owning the home
- Having a compromise claim, deed in lieu of foreclosure, or foreclosure on a previous VA loan
County | Loan Limit |
---|---|
County 1 | $500,000 |
County 2 | $600,000 |
County 3 | $400,000 |
County 4 | $700,000 |
How do VA loan limits work?

VA loan limits are important for figuring out how much eligible Veterans and others can borrow. They show the maximum amount the VA will guarantee to your lender. This protection helps both the borrower and lender.
VA loans are not like traditional mortgages with a fixed borrowing limit for home buying. But, to get a loan, you might need to cover part of it with your entitlement, a down payment, or both.
The VA guarantees a quarter of the loan if it’s over $144,000 and you default. So, if your loan is more than this and there’s still entitlement left, you may need a down payment.
Your credit, income, and assets matter a lot too. Lenders check those to see what size of loan you can handle. Remember, each lender might have their own rules about credit scores, even though the VA doesn’t require a specific minimum score.
For a better idea, let’s break down how VA loan limits function:
1. VA loan guarantee and borrowing power:
Loan Amount | VA Loan Guarantee | Borrower’s Contribution |
---|---|---|
$120,000 | $30,000 | $90,000 (75%) |
$200,000 | $50,000 | $150,000 (75%) |
$250,000 | $62,500 | $187,500 (75%) |
Note: The loan guarantee percentage may vary depending on your eligibility and entitlement status.
2. Down payment requirements:
If you need more than $144,000 and there’s a bit of entitlement left, you might need to make a down payment. How much you need to pay depends on your lender’s rules.
3. Credit score requirements:
It’s smart to keep a good credit score even though the VA doesn’t have a set minimum. This can help you get a loan easier, with better rates. Remember, lenders do have their own credit score expectations.
Knowing about VA loan limits and what affects your loan amount is key if you’re thinking about a VA loan. Talking to an expert loan officer and comparing lenders can guide you to a smart decision.
Conclusion
VA loan limits are now irrelevant for eligible Veterans, service members, and survivors with full entitlement. If you meet VA loan requirements and have full entitlement, you can borrow any amount with no down payment. But, your lender must still approve your loan. They’ll look at your credit history, income, and assets.
If you have some entitlement left, the VA loan limit depends on your county. These limits don’t restrict how much you can borrow. They just set the highest amount the VA will back. To see how much you can borrow, talk to different lenders. Compare their offers to find the best fit for you.
Overall, whether you have full or partial entitlement, VA loans make home buying easier for qualified folks. By knowing about loan limits and eligibility, you can wisely choose how to finance your home. This way, you can move through the home buying process with confidence.
How Do VA Loan Limits Impact the Amount I Can Borrow Based on My Income?
VA loan limits are set by the Department of Veterans Affairs and can impact the amount you can borrow based on your income. These limits vary by county and can affect your eligibility for a VA loan. Understanding va loan limits explained is essential when considering a home purchase with a VA loan.