Is There a VA Loan Amount Limit?

If you’re a veteran, active service member, or survivor in search of a home mortgage loan, you may wonder what your VA loan amount limit is. The good news is as of 2020, there are no VA loan amount limits if you qualify for full entitlement and your loan exceeds $144,000.

If you have remaining entitlement, or an unused amount from a previous VA-backed home loan, you can borrow up to $647,200 in most counties. That’s a step up from $548,250 in 2021. Some high-cost areas, such as northern Virginia, even top out at $970,800 for a single-family dwelling.

To get you started, we’ve collected some need-to-know information on VA loan amount limits.

Qualifying for full entitlement

Since the VA lifted loan amount limits for anyone with full entitlement borrowing over $144,000 you’ll enjoy no down payment, and the VA will secure up to 25% of your total loan amount.

To qualify for full entitlement, you must meet the following stipulations:

• You’ve never used your home loan benefits previously.
• You’ve paid back a previous VA loan in full after selling a property.
• You’ve repaid the VA in full after a foreclosure or short sale.

How VA loan amount limits work with remaining entitlement

Contrary to how it sounds, VA loan amount limits aren’t the cap on how much you can borrow. Rather they’re a limit on how much you can borrow before a bank requires you to produce a down payment. If you have remaining entitlement, the VA will pay your lender up to 25% of your county’s loan limit minus the amount of entitlement you previously used. Here’s an example:

Let’s say you want to purchase a home priced at $350,000 but you have already used $347,200 of your original full entitlement. The VA will insure your loan for 25% of your county’s loan limit (typically $647,200) minus the $347,200 you’ve already used. This means the VA will cover 25% of $300,000, or $75,000.

How do I find out my VA loan limit amount?

Once the VA approves you for full or remaining entitlement, you’ll receive a Certificate of Eligibility (COE) stating your approved entitlement amount. This proves to your lending institution that you’re eligible for VA home loan funds. Then your bank or mortgage company will determine your pre-approved loan amount based on a variety of parameters that may include the following:

• Credit history
• Debt-to-income ratio
• Current assets
• Total value of savings, retirement, and investment accounts

While the VA doesn’t require a minimum credit score, individual lenders may have different stipulations.

Reach out to an OVM Financial expert to learn how to access your VA loan benefits. We’re happy to discuss your options and answer any questions about VA loan amount limits. You can also read our articles on VA home loans, multifamily VA loans, and VA loan transfer requirements.