Yes, you can exceed the VA loan limit in certain scenarios. The truth is, the Department of Veterans Affairs (VA) doesn’t impose a strict cap on what you can borrow, it’s the individual lenders who set the loan limit, often in line with the conforming loan limit.
This is where the concept of the “VA loan limit” comes in. If you qualify with your lender and still have sufficient entitlement, you could potentially finance a home that goes beyond standard county loan caps.
Keep reading, because you’re probably wondering exactly how this all works—and we’ll break it down step by step.
Table of Contents
Understanding the Basics: What Is the VA Loan Limit?
Here’s the deal: the “VA loan limit” typically refers to the conforming loan limit set by the Federal Housing Finance Agency (FHFA). In most counties across the country, this limit is the maximum amount eligible buyers can borrow without putting money down—assuming you have what’s known as full entitlement. However, just because there’s a “limit” doesn’t mean you can’t borrow more.
Think of it as a safety net. The VA promises to cover a certain portion of your mortgage if you default. The loan limit dictates how much of that guarantee you’re automatically entitled to (if your eligibility is untouched by previous VA loans). Above that amount, you may need a down payment. But we’ll talk more about that in a moment.
Why Does a “Limit” Exist in the First Place?
The VA loan program is designed to help active-duty service members, veterans, and certain eligible spouses get into homes with minimal financial barriers. To keep the system stable, the government sets a certain level of liability it will assume for each borrower—essentially capping its guarantee.
But when you have full entitlement, there’s no real maximum loan amount set by the VA. Your lender might allow you to borrow beyond the conforming limit if you qualify financially. That’s why you’ll hear about jumbo VA loans when you’re looking at expensive properties.
Full Entitlement vs. Partial Entitlement
To understand if you can exceed the VA loan limit, it’s crucial to grasp the difference between full entitlement and partial entitlement. Entitlement is the dollar amount the VA guarantees on your behalf.
- Full Entitlement: You either have never used your VA loan benefit or you’ve paid off (and properly restored) any previous VA loan. In this case, there is effectively no loan limit—though lenders will still evaluate your credit, debt-to-income ratio, and other eligibility factors.
- Partial Entitlement: You already have an active VA loan, or you haven’t fully restored your entitlement after selling a home that had a VA loan. In this scenario, there may be a calculated limit on how much you can borrow without a down payment.
Wondering if you can exceed the VA loan limit usually comes from borrowers with partial entitlement who want to buy another home. It can also apply to those who want an exceptionally high loan amount (a jumbo VA loan) and don’t mind making a down payment if needed.
How Jumbo VA Loans Work
A jumbo VA loan is simply a VA loan that exceeds the standard conforming loan limits in your county. If you have full entitlement, you can borrow a jumbo amount (like $1 million or more) if you qualify financially. That means if your income, debt-to-income ratio, and credit history are strong, you might not need any down payment at all—despite surpassing the traditional “limit.”
However, if your entitlement is partially used, you might be asked to put some money down to offset the lender’s risk. The good news is that, even in a partial entitlement situation, the down payment might be much lower than a conventional loan would require for the same loan amount.
State and County Variations
Conforming loan limits can differ across the country. Certain high-cost areas (think parts of California, New York, and Hawaii) have higher VA loan limits because home prices are much steeper. If you’re in one of those high-cost counties, you might find that your “limit” is tens of thousands of dollars above the baseline.
Still, if you’re eyeing a property that even exceeds these elevated limits, a jumbo VA loan could be in play. Let’s take a quick look at some example county-specific loan limits below.
Sample VA Loan Limits by Select High-Cost Counties
| County (State) | Standard Conforming Limit | High-Cost Limit | Notes |
|---|---|---|---|
| Los Angeles (CA) | $806,500 | $1,209,750 | High-cost area |
| Fairfax (VA) | $806,500 | $1,209,750 | High-cost area |
| Harris (TX) | $806,500 | N/A | Generally follows baseline |
| Honolulu (HI) | $806,500 | $1,209,750 | Very high-cost area |
Please note these figures are examples. Actual limits can shift from year to year, so always check the VA official site or consult your lender for the most up-to-date information.
The Magic of VA Entitlement Restoration
If you’ve used your VA loan benefits before, you might need to restore your entitlement to gain full borrowing power again. This often happens when:
- You’ve sold the property you financed with a VA loan and paid off the loan in full.
- You’ve refinanced your VA loan into a non-VA loan, freeing up your entitlement.
- You’ve had a previous VA loan assumed by another veteran who replaces your eligibility with theirs (less common, but possible).
Once you restore your entitlement, you’re back to “full” status (assuming everything else is in good standing).
Partial Entitlement Calculation Scenarios
So, what if you already have one VA loan that’s not paid off, but you’re looking to buy a second home for a job relocation or another need? You might have some of your entitlement left, just not the full amount.
In that case, a down payment might come into play if you’re exceeding the county limit. Let’s look at a simplified example in the table below.
Full vs. Partial Entitlement Examples
| Entitlement Status | Scenario | Loan Limit Impact | Down Payment Required? |
|---|---|---|---|
| Full Entitlement | Bought first VA home, sold it, entitlement restored | No limit beyond lender qualifications | No, if you qualify financially |
| Partial Entitlement | Current VA loan active, want to buy another home | Limited by county limits for zero-down | Possible, if exceeding limit |
Examples of Veterans Who Went Beyond the Limit
Let’s say you’re like Jake, an Army veteran who bought a condo in Texas with his VA loan. He later received a permanent change of station (PCS) order to California, so he needed a bigger home. Jake didn’t sell his Texas condo, meaning some of his entitlement remained tied up. His new place in California had a price tag well above the county’s baseline limit. Result? Jake put down a modest down payment to cover the gap and still benefited from the VA’s flexible underwriting guidelines.
Or consider Emily, a Marine veteran who paid off her first VA mortgage years ago. Now she wants a jumbo VA loan for a multi-unit property to accommodate her growing family.
Because she restored her entitlement, Emily can borrow more than the conforming limit—potentially into the million-dollar range—without needing a down payment. Her income and credit score pass the lender’s tests, so she’s all set.
Steps to Take if You Want to Exceed the VA Loan Limit
- Check Your Entitlement Status: Contact your lender or check your Certificate of Eligibility (COE) to see if you have full or partial entitlement.
- Assess Your County’s Conforming Limit: Confirm your local limit, especially if you live in a high-cost area.
- Calculate Your Budget: Look at your debt-to-income ratio, credit score, and monthly obligations to estimate how large of a mortgage you can realistically afford.
- Shop for Lenders: Not all lenders handle jumbo VA loans or partial entitlement scenarios equally. Find one that specializes in VA financing for larger loan amounts.
- Get Pre-Approved: This step clarifies what you can borrow and outlines whether you’ll need a down payment.
- Consider Your Down Payment Options: If partial entitlement is in play, figure out how much you’d have to pay upfront to meet lender requirements.
- Restoration (if possible): If you can restore your entitlement before buying again, do so to maximize your borrowing power.
Frequently Asked Questions
1. Do all lenders allow jumbo VA loans?
You’ll find that some lenders specialize in higher loan amounts and have no problem going above standard VA loan limits—others might not. It’s always wise to shop around. If you need a jumbo VA loan, look for lenders advertising jumbo expertise, or ask your real estate agent for recommendations. Not all mortgage companies have the same guidelines or comfort level with large loans.
2. Is a down payment always required if I exceed the VA loan limit?
No, it isn’t always required. If you have full entitlement, you might not need any down payment, even if you’re borrowing above the county limit. However, with partial entitlement, a down payment could be necessary to secure the lender’s confidence. The exact amount depends on factors like how much entitlement you have left and the total loan amount.
3. Can I use my VA loan more than once?
Absolutely. Many veterans and service members use their VA benefits multiple times. Each time you fully pay off a VA loan (or meet other restoration requirements), you can generally restore your entitlement. Just keep in mind that partial entitlement can complicate things, so if you plan to hold multiple VA-financed properties at once, talk to a knowledgeable lender or VA loan specialist.
4. What if my previous VA loan went into foreclosure?
You can still be eligible for another VA loan, but the foreclosure may reduce your available entitlement. This typically affects how much you can borrow without a down payment. You’ll also need to wait out any credit or financial waiting periods. Consult with your lender to see if a down payment will be required based on your remaining entitlement.
5. How do I restore my full VA entitlement?
Typically, you sell your home and pay off the existing VA loan in full, or you refinance out of the VA program. Then you request a restoration of entitlement from the VA. You’ll need a completed VA Form 26-1880 and evidence that your previous loan was satisfied. Once restored, you’ll regain the ability to get another zero-down VA loan (if you qualify with your lender).
6. Are interest rates higher on jumbo VA loans?
While rates can vary, jumbo VA loans typically remain competitive compared to other jumbo financing options. You might see a slight rate increase compared to standard VA loans, but it’s often less than what you’d encounter with non-VA jumbo mortgages. Always compare offers from multiple lenders to find the best rate and terms for your situation.
7. Can I exceed VA loan limits for an investment property?
The VA loan benefit is primarily for your primary residence. You generally can’t use a VA loan to purchase pure investment properties or vacation homes. That said, you can buy a multi-unit property (like a duplex or triplex) if you plan to occupy one of the units as your primary residence. If the property’s price is over the limit, you might need a jumbo VA loan.
Practical Tips for Moving Forward
- Partner with a VA-Savvy Lender: If you’re looking above the county limit, ensure your lender knows VA programs inside and out.
- Review Your Budget Carefully: Just because you can borrow more doesn’t mean you should. Aim for a comfortable monthly payment.
- Get Your Paperwork in Order: That includes your COE, proof of service, and any documents related to past VA loans.
- Ask Questions: Don’t be shy to inquire about fees, interest rates, and how partial entitlement is calculated.
