How VA Loan Limits Work and What They Mean for Your Purchase
VA loan limits are the maximum amount a lender will let you borrow without a down payment, and they vary by county
The VA loan limit is the dollar amount the Department of Veterans Affairs will may provide to a lender if you default on your mortgage. It is not the maximum you can borrow — it is the maximum the VA will back. Lenders use this may provide to decide whether they will lend you money without requiring a down payment.
Most counties have a limit of $766,550 as of 2024, though some high-cost areas have higher limits. If you want to borrow more than your county's limit, you will need to put down a down payment to cover the difference. The VA does not set a hard ceiling on total borrowing; lenders do, based on your income and credit.
Your county's limit depends on the median home price in that area. The VA updates these limits each year in early January. You can find your county's current limit on the VA website by entering your state and county, or by asking your lender — they look this up as part of the loan process.
Key Takeaways
- VA loan limits are the amount the VA will may provide to your lender, not the total you can borrow, and they vary by county based on local home prices.
- Most counties have a limit around $766,550, but high-cost areas like parts of California, New York, and Washington DC have higher limits that change yearly.
- You can borrow more than your county's limit if you put down a down payment to cover the amount above it.
- Your lender will tell you your county's limit and how much you can borrow based on your income, credit score, and debt.
How the VA loan limit affects your down payment
If you borrow up to your county's limit, you do not need a down payment. The VA's may provide replaces it. If you want to borrow more than the limit, you will need to cover the overage yourself — that becomes your down payment.
For example, if your county limit is $766,550 and you want to buy a $850,000 home, you would need to put down $83,450. Your lender would lend you $766,550 with the VA may provide and no down payment on that portion. The down payment is only on the amount above the limit.
Some borrowers choose to put down money even when they do not have to, to lower their monthly payment or avoid paying the VA funding fee. Your lender can show you the trade-offs between these options.
County limits and high-cost areas
The VA sets limits by county based on the median home sale price in that area. Counties with higher median prices get higher limits. As of 2024, limits range from around $766,550 in most of the country to over $1.1 million in the most expensive counties.
High-cost areas include parts of California (San Francisco Bay Area, Los Angeles, San Diego), New York (New York City area), Washington DC, Massachusetts, and Hawaii. If you are buying in one of these areas, your lender can tell you the exact limit for your county. These limits change every January, so if you are planning to buy later in the year, ask your lender whether the limit might increase.
If you are moving between states or counties, your limit changes with you. The limit that matters is the one for the county where the home is located, not where you currently live.
What happens if you want to borrow above the limit
You have two options: put down a down payment to cover the overage, or look for a lender who will lend above the VA limit without requiring a down payment. Some lenders offer VA jumbo loans that go above the standard limit, though these are less common and may have different terms than standard VA loans.
If you use a jumbo loan, the amount above your county's limit will not have the VA may provide. That means the lender is taking on more risk and may charge a higher interest rate or require a down payment on that portion. Compare offers from multiple lenders before deciding.
The most straightforward path for most borrowers is to put down a down payment if they want to exceed the limit. This keeps the VA may provide on the full amount the VA will back, and you avoid the complications of a jumbo product.
Your VA entitlement and how it relates to the limit
Your VA entitlement is the amount the VA will may provide on your behalf. Most veterans have a full entitlement of $36,000, though this can be higher if you served longer or in certain roles. The VA will may provide up to 25 percent of your county's loan limit, or your full entitlement, whichever is greater.
In most cases, this means the VA will may provide enough to let you borrow up to your county's limit with no down payment. If you have already used your entitlement on a previous VA loan that you have not yet paid off, you may have less entitlement available. Your lender will check this and let you know what you can borrow.
You can restore your entitlement by paying off a previous VA loan in full, even if you have already bought another home. This is useful if you want to buy a second property or refinance into a better rate.
The VA funding fee and how it relates to borrowing
The VA funding fee is a one-time charge the VA collects from most borrowers to help fund the program. It is typically 2.3 percent of the loan amount for first-time users with no down payment, though it varies based on your military branch, whether you have a down payment, and whether you are a first-time VA borrower.
The funding fee is added to your loan amount, so it increases the total you borrow. If you are at or near your county's limit, the funding fee might push you over it, which would require a down payment. Ask your lender to calculate the total loan amount including the funding fee before you commit.
Some borrowers are exempt from the funding fee, including those receiving VA disability compensation and surviving spouses of veterans who died in service. If you think you might be exempt, bring your disability letter or other documentation to your lender.
Frequently Asked Questions
Can I borrow more than my county's VA loan limit?
Yes. You can borrow more if you put down a down payment to cover the amount above the limit. Some lenders also offer VA jumbo loans that exceed the limit without a down payment, though these typically have different terms and may cost more.
Do VA loan limits change every year?
Yes. The VA updates limits each January based on changes in median home prices by county. If you are planning to buy later in the year, ask your lender whether your county's limit might increase, especially in areas with rising home prices.
What if I used my VA loan before and want to buy again?
You can use your VA loan benefit again if you have restored your entitlement by paying off the previous loan in full. If the previous loan is still active, you may have reduced entitlement available. Your lender will check your entitlement status and tell you how much you can borrow.
Does the VA funding fee count toward my loan limit?
Yes. The funding fee is added to your loan amount, so it uses up part of your available borrowing. If you are near your county's limit, the funding fee might push you over it and require a down payment. Ask your lender to show you the total loan amount including the fee.
How do I find out my county's exact VA loan limit?
You can look it up on the VA website by entering your state and county, or ask your lender — they will look this up as part of the loan process. Limits change yearly in January, so check the current year's limits, not old information.