What Are the VA Loan Limits for 2026?

VA loan limits have changed over time. The 2026 updates reflect the current economic climate and housing market trends, helping to keep the program current with updated cost-of-living figures. Whether you’re a veteran considering a home in a low-cost area or a high-cost county, VA loan limits can influence your borrowing capacity, affecting your overall home-buying strategy.

A financial advisor can help you plan and save for a home purchase.

What Is a VA Loan?

The Veterans Affairs (VA) loan program aims to provide substantial benefits to those who have served in the United States military.

Established under the Servicemen’s Readjustment Act of 1944, commonly known as the GI Bill, this program was created to offer several homebuying benefits to returning World War II veterans.

Borrowers who purchase a home using a VA loan are not required to make a down payment or pay private mortgage insurance (PMI), both of which typically apply to conventional loans. Additionally, VA loans often have more competitive interest rates.

To be eligible for a VA loan, you must be one of the following.

Veteran
Active-duty service member
Reservist
Member of the National Guard

Homebuyers must meet the service duration requirements, which generally include 90 consecutive days of active service during wartime or 181 days during peacetime.

Additionally, surviving spouses of service members who have died in the line of duty or due to a service-related disability may also qualify for this program.

Understanding VA Loan Limits

VA loan limits don’t necessarily refer to how much a person can borrow using a VA loan. Instead, these limits represent the maximum loan amount that the Department of Veterans Affairs will guarantee without requiring a down payment from the borrower.

VA loan limits are based on a percentage of the conforming loan limits set by the Federal Housing Finance Agency (FHFA), but these can vary based on the cost of living in a particular area.

Furthermore, loan limits are not static; they are reviewed annually and adjusted to correspond with fluctuations in the housing market.

How Entitlement Affects VA Loan Limits

A VA loan entitlement is a financial guarantee from the Department of Veterans Affairs to the lender, ensuring that a portion of the mortgage will be covered by the VA should the borrower default on the loan.

Keep in mind that entitlement is not a sum provided to the borrower, but rather the maximum liability the VA is willing to assume. It is a crucial element in the VA loan process, as it directly influences the maximum loan amount that a veteran can secure without a down payment.

Full Entitlement vs. Partial Entitlement

Whether a borrower is subject to loan limits depends on whether they have full or partial entitlement.

A borrower has full entitlement if they have done of the following.

Never gotten a VA loan before.
Paid off a previous VA loan in full and sold that property.
Used their home loan and repaid it in full after a foreclosure or short sale.

A borrower has a partial or remaining entitlement if they have done of the following.

Have an active VA loan still in the repayment process
Paid off a previous VA loan in full and still own the home.
Refinanced their VA loan into a non-VA loan and still own the home.
Previously had a VA loan but had a short sale or foreclosure and did not repay the loan, or
Had a deed in lieu of foreclosure on a previous VA loan.

2026 VA Loan Limits

A member of the U.S. Army smiles in front of the home that he and his wife purchased with a VA loan.

Borrowers with partial entitlement are subject to VA loan limits, while those with full entitlement are not.

The VA guarantees up to $36,000 to the lender if the borrower defaults on a loan of under $144,000. For fully entitled borrowers with loans of more than $144,000, the VA guarantees up to 25% of the loan in the event of a default.

As a result, a borrower with full entitlement can potentially obtain a VA-backed loan of any size without a down payment.

On the other hand, borrowers with remaining or partial entitlement can still access VA loans. However, the amount they can borrow above $144,000 without a down payment is capped by the Federal Housing Finance Agency (FHFA) conforming loan limits in 2026:

$832,750: Single-family home in most counties
$1,249,125: Single-family home in high-cost counties

As a result, the VA only guarantees up to 25% of the county loan limit (minus the remaining entitlement) if a borrower with partial entitlement defaults on their mortgage.

For example, if you are a veteran with partial entitlement who wants to buy a home in an area subject to standard VA loan limits, the VA would only guarantee up to $208,187.50 ($832,750*0.25) in the event of a default. If the veteran wanted to borrow more, they would likely need a down payment.

How VA Loan Limits Have Changed

VA loan limits changed materially with the passage of the Blue Water Navy Vietnam Veterans Act of 2019.

Prior to this legislation, VA-backed mortgages were capped based on county-level conforming loan limits set by the Federal Housing Finance Agency. Veterans seeking homes above the local loan limit were required to make a down payment equal to 25% of the difference between the purchase price and the local loan limit.

Effective January 1, 2020, the law eliminated these caps for borrowers with full VA entitlement. For those veterans, the Department of Veterans Affairs now guarantees 25% of the loan amount regardless of home price, removing the need for a down payment solely because of loan size. This change was applied nationwide and not limited to just high-cost housing areas.

The reform altered the role of county loan limits rather than removing them entirely. Loan limits still apply to borrowers with partial entitlement, such as those who have an active VA loan or previously used entitlement that was not restored. In these cases, conforming loan limits continue to define how much of the mortgage the VA will guarantee without a down payment.

As a result, VA loan limits now function as an entitlement-based framework rather than a universal borrowing cap. Full-entitlement borrowers are no longer constrained by geographic pricing thresholds, while partial-entitlement borrowers remain subject to guarantee limits tied to local housing costs. This structure reflects a shift from price-based restrictions to entitlement-based eligibility.

How VA Loan Limits Interact With Lender Underwriting and Borrower Qualification

VA loan limits determine how much of a mortgage the Department of Veterans Affairs will guarantee, but they do not override lender approval standards.

Even when a borrower has full entitlement and is not subject to a formal loan limit, lenders still evaluate the application based on their own risk criteria. Approval depends on the borrower’s financial profile, not solely on VA eligibility.

Lenders assess factors such as credit history, debt-to-income ratio and residual income. Residual income requirements are specific to VA loans and measure the amount of income remaining after major expenses. A borrower may qualify for a higher loan amount under VA rules but still be limited by these underwriting thresholds.

Loan size can also be constrained by property valuation. VA loans require an appraisal to confirm that the home’s value supports the purchase price. If the appraisal comes in low, the borrower may need to renegotiate the price, bring cash to closing or walk away from the transaction, regardless of entitlement status.

Some lenders apply internal caps or overlays that are more conservative than VA guidelines. These overlays may restrict maximum loan amounts, require higher credit scores or impose tighter debt limits.

As a result, borrowing capacity is ultimately shaped by both VA guarantees and lender-specific standards.

Bottom Line

A soldier who's returning home from active duty is embraced by his wife and child.

VA loan limits require that applicants understand how full and partial entitlements will determine their eligibility. Loan limits were removed for veterans with full entitlements under the Blue Water Navy Vietnam Veterans Act of 2019. However, borrowers with partial entitlement are still limited by how much the VA is willing to guarantee in the event of a default. Those caps are based on the conforming loan limits set by the Federal Housing Finance Agency.

Homebuying Tips

At the outset of the homebuying process, it’s important to understand which mortgage options are available to you, including conventional, FHA, USDA and VA loans. You should also shop around for a competitive rate. SmartAsset’s mortgage rate table can help you compare the rates currently being offered so you can hopefully find one that fits your needs.
Buying a home is a major financial milestone. Consider enlisting the help of a financial advisor to guide you through the process of saving and planning for this purchase. Finding a financial advisor doesn’t have to be hard. SmartAsset’s free tool matches you with vetted financial advisors who serve your area, and you can have a free introductory call with your advisor matches to decide which one you feel is right for you. If you’re ready to find an advisor who can help you achieve your financial goals, get started now.