The Bottom Line Up Front

Full VA loan entitlement means no loan limit. Borrow whatever a lender will approve without a down payment, as long as income and the appraisal support it. The restriction appears only when entitlement is partial, meaning a prior VA loan is still active or a VA foreclosure consumed entitlement. At that point, county-level conforming limits control how much zero-down borrowing power remains.

For 2026, the baseline conforming loan limit is $832,750 in standard counties. High-cost areas go up to $1,249,125 in the contiguous states. These numbers come from the Federal Housing Finance Agency and adjust annually based on home price data. With full entitlement, a lender can approve well above these figures with no down payment. With partial entitlement, the VA guarantees 25% of the county limit minus whatever entitlement is already tied up, and any loan amount above that guarantee requires a down payment on the difference.

2026 FHFA Conforming Loan Limits by Unit Count

The FHFA sets conforming loan limits at the county level. Most counties use the standard baseline. In the contiguous states, 121 counties carry limits above the baseline up to the 150% ceiling. Alaska, Hawaii, Guam, and the Virgin Islands (39 county-equivalents) carry at least $1,249,125 by statute, with Maui and Kalawao counties at $1,299,500 based on local median prices.

These limits apply only when a Veteran has partial entitlement. With full entitlement, none of these figures restrict borrowing power. VA Circular 26-25-10 states that "the entitlement statute requires the use of the CLL applicable to a single-family residence, (i.e., single unit property)." A Veteran purchasing a duplex or fourplex calculates remaining entitlement from the one-unit county limit, not the multi-unit figure.

Full Entitlement: No Loan Limit

Since January 1, 2020, Veterans with full entitlement face no VA-imposed loan limit. The Blue Water Navy Vietnam Veterans Act (Pub. L. 116-23, §6(a)) amended 38 USC 3703 to remove the one-to-one link between loan amounts and conforming limits for full-entitlement borrowers. Before that date, the county conforming limit set the zero-down ceiling for every VA borrower, and larger loans required a down payment on the excess.

Under the current statute, the VA guarantees 25% of whatever the loan amount is for Veterans who have not previously used their entitlement (or who have fully restored it). A Veteran purchasing a $1.2 million home with full entitlement receives a VA guaranty of $300,000 (25% of the loan) with no down payment. The only constraints are the borrower's income, the property appraisal, and the lender's own underwriting standards.

Full entitlement requires that no prior VA loan use is outstanding. Either the Veteran has never used the benefit, or a previous VA loan was paid off, the property was sold, and entitlement restoration was completed through the VA. Requesting the COE confirms whether entitlement is full or partial before shopping begins.

Remaining Entitlement and the Down Payment Formula

When entitlement is partial, the VA guaranty calculation starts with the county conforming loan limit. Take 25% of that limit to get the maximum guaranty, subtract whatever entitlement is already tied up, and multiply the remaining guaranty by four. That result is the maximum loan amount available at zero down.

Worked example: A Veteran has a prior VA loan of $200,000 still active on the first home (entitlement charged: $50,000, which is 25% of the original $200,000 loan). The Veteran is buying a new primary residence in a standard county while keeping the first property. The new home must be occupied as a primary residence; VA loan requirements do not permit a second home or investment property on a new VA purchase.

If the purchase price exceeds the zero-down ceiling, a down payment covers 25% of the gap. On a $700,000 purchase with a $632,750 zero-down ceiling, the gap is $67,250 and the required down payment is $16,812.50 (25% of $67,250). The VA still guarantees the portion covered by remaining entitlement, so the lender's risk stays contained.

A common scenario is a Veteran buying another primary residence while an existing VA loan remains active. If entitlement restoration was not completed after a prior sale, partial entitlement rules apply even though the property is no longer owned. Requesting the COE before shopping catches this.

How to Read the COE

The COE (requested with VA Form 26-1880) contains a table labeled "Prior Loans charged to entitlement." VA.gov states: "Check your COE to find the amount of entitlement you've already used. In the table called 'Prior Loans charged to entitlement,' we list the amount you've already used in the Entitlement Charged column." If no loans appear in that table, entitlement is full and no county limit applies.

The Entitlement Charged figure is 25% of the original loan amount at origination. It does not change as the loan is paid down. A Veteran who took a $200,000 VA loan shows $50,000 in entitlement charged regardless of the current balance. The remaining entitlement calculation uses this charged figure, not the outstanding principal.

Keeping One VA Loan and Buying Another

A Veteran with an active VA loan can use remaining entitlement to purchase a new primary residence. VA Circular 26-25-10 describes the formula: "the amount of remaining entitlement is calculated by taking 25% of the CLL and subtracting the previously used entitlement that was not restored." The new purchase must be occupied as a primary residence.

Restoring Entitlement

VA.gov lists three paths to restore previously used entitlement:

VA.gov also notes: "If you don't meet at least 1 of the requirements to restore the entitlement you used in the past, you may still have remaining entitlement to buy or refinance another home." Restoration returns entitlement to full status, removing the county-limit constraint on the next purchase.

Appraisal Shortfall vs. Entitlement Shortfall

VA.gov states: "The maximum VA loan on an individual property is either the appraised value of the property or the purchase price, whichever is lower." An appraisal below the purchase price caps the loan at the appraised value regardless of entitlement status. This is separate from the entitlement calculation.

An entitlement shortfall means the remaining guaranty does not cover 25% of the loan, triggering a down payment. An appraisal shortfall means the property does not support the contract price, capping the loan amount. Both can apply on the same transaction. A Veteran with partial entitlement purchasing at $700,000 in a standard county may face an entitlement-driven down payment and an appraisal-driven cap simultaneously if the property appraises below contract.

IRRRLs and Cash-Out Refinances

VA Circular 26-25-10 states: "The Freddie Mac CLL does NOT apply to IRRRLs. For IRRRLs greater than $144,000, VA will guarantee 25 percent of the loan amount, regardless of the Veteran's entitlement."

VA Circular 26-19-30 states that the CLL applies to "loans above $144,000 made to purchase, refinance (cash-out refi), or construct a home." Cash-out refinances follow the same partial-entitlement formula as purchases: 25% of the CLL minus previously used entitlement.

Three Scenarios

Scenario 1: Keeping a $200,000 loan and relocating to a standard county. Assumptions: $200,000 original VA loan still active, entitlement charged $50,000, relocating to a county at the $832,750 baseline. Guaranty: $832,750 × 0.25 = $208,187.50. Remaining: $208,187.50 − $50,000 = $158,187.50. Maximum zero-down: $158,187.50 × 4 = $632,750. A $650,000 purchase requires a down payment of ($650,000 − $632,750) × 0.25 = $4,312.50.

Scenario 2: High-cost county with partial entitlement. Assumptions: entitlement charged $75,000, purchasing in San Francisco County (limit $1,249,125). Guaranty: $1,249,125 × 0.25 = $312,281.25. Remaining: $312,281.25 − $75,000 = $237,281.25. Maximum zero-down: $237,281.25 × 4 = $949,125. A $900,000 purchase requires no down payment ($900,000 < $949,125).

Scenario 3: Prior loan paid off but not restored. Assumptions: $300,000 VA loan paid in full, property sold, but the Veteran did not request restoration through VA Form 26-1880. Entitlement charged still shows $75,000. The Veteran has remaining entitlement, not full entitlement, until restoration processes. In a standard county: guaranty $208,187.50, remaining $208,187.50 − $75,000 = $133,187.50, maximum zero-down $133,187.50 × 4 = $532,750. After restoration, entitlement returns to full and no county limit applies.

High-Cost Counties

FHFA designates counties as high-cost when local median home prices push the conforming limit above the national baseline. The ceiling is 150% of the baseline: $1,249,125 for one-unit properties in 2026. 121 counties in the contiguous states carry limits above the $832,750 baseline, including San Francisco, Los Angeles, and parts of the Northeast and D.C. metro.

For Veterans with partial entitlement, a high-cost county provides more zero-down borrowing power than a standard county. The same remaining entitlement stretches further because the county limit (and therefore the maximum guaranty) is higher. A Veteran with $50,000 of used entitlement in a $1,249,125 county has a zero-down ceiling of $1,049,125, compared with $632,750 in a standard county.

Alaska, Hawaii, Guam, and the U.S. Virgin Islands carry at least the $1,249,125 statutory baseline by federal statute, with a ceiling of $1,873,675. Of the 39 county-equivalents, 37 carry the $1,249,125 baseline. Maui and Kalawao counties carry $1,299,500, pushed above the baseline by local median home prices.

VA Jumbo Loans

A VA jumbo loan is any VA loan above the county conforming limit. With full entitlement, the VA guarantees 25% of the loan regardless of size, so the program itself does not change.

With partial entitlement on a jumbo purchase, the county limit still sets the zero-down ceiling. Anything above that ceiling requires a down payment covering 25% of the gap.

Frequently Asked Questions