What Are VA Loan Limits?
In 2024, the VA loan limit for most counties is set at $766,550, while higher-cost counties allow limits up to $1,149,825:
- Standard Counties: The typical VA loan limit is $766,550.
- High-Cost Counties: In pricier areas, the limit can reach $1,149,825 for a single-family home.
VA loan limits depend on the county and whether a down payment is made. Borrowers who stay within the conforming loan limits often qualify for no down payment, though a larger loan may require one. While the VA doesn’t enforce a minimum credit score, individual lenders may have their own requirements. VA home loans generally have a maximum term of 30 years and 32 days, though they cannot exceed the property’s remaining economic life.
How VA Loan Limits Work
While VA loan limits affect maximum loan amounts without a down payment, they don’t impose a hard cap on how much veterans can borrow. Instead, they set a borrowing threshold for no-down-payment financing, with the VA guaranteeing 25% of the loan amount.
For instance, if a veteran buys a home priced within their county’s loan limit, they typically won’t need a down payment. However, if they exceed the limit, they may need to make a down payment on the amount beyond the set limit.
“VA loan limits can be confusing for first-time buyers, but they’re designed to offer maximum flexibility in a range of housing markets. For veterans purchasing in high-cost areas, these limits allow for significant borrowing power without the burden of high upfront costs.”
Current Housing Market Data and VA Loan Limits
In 2024, housing prices remain high across much of the U.S., which can impact VA borrowers navigating competitive markets. Data shows that the median home price in the U.S. is now approximately $410,000, a slight increase from the previous year.
This rise in property values has prompted adjustments to VA loan limits in high-cost areas. For example, in parts of California, New York, and Washington, VA loan limits now exceed $1 million, reflecting the ongoing need for affordable home financing options for veterans in these regions.
Example Loan Limits by County for 2024:
| County | VA Loan Limit |
|---|---|
| Los Angeles, CA | $1,149,825 |
| Denver, CO | $766,550 |
| Honolulu, HI | $1,149,825 |
| New York, NY | $1,149,825 |
| Dallas, TX | $766,550 |
By adjusting limits to meet housing market conditions, the VA loan program continues to support veterans who need more borrowing power in today’s housing market.
Using Entitlement to Determine Your VA Loan Limit
The VA loan limit you’re eligible for depends on your remaining entitlement. Veterans who have never used their VA loan benefits or have fully restored entitlement after paying off a previous VA loan often have no loan limits. In these cases, they can buy homes without a down payment, even above the local loan limit.
For veterans with partial entitlement, such as those with an existing VA loan, the loan limit becomes more relevant. They may need to provide a down payment if they exceed the remaining entitlement amount.
“Understanding entitlement is crucial for veterans looking to maximize their VA loan benefits. It’s not just about the loan limit, but also how much entitlement you have left to cover a new purchase.”
High-Cost Counties and Increased VA Loan Limits
For veterans purchasing homes in high-cost counties, VA loan limits offer additional flexibility. The FHFA sets these higher limits to account for increased housing costs, ensuring that veterans can afford homes in pricier markets without necessarily needing a down payment.
In high-cost counties, limits can reach as high as $1,149,825. For veterans and their families, this translates to more buying power, especially in metropolitan areas where prices often exceed the standard VA loan limit. This accommodation allows veterans to compete in competitive real estate markets without the burden of high down payments.
How VA Loan Limits Affect Down Payments
A major benefit of VA loans is the potential to purchase a home with no down payment. However, if a borrower wants to purchase a home above the VA loan limit, they may need to make a down payment on the excess amount. The VA typically requires veterans to pay 25% of the difference between the loan limit and the purchase price.
Example Calculation:
If a veteran with full entitlement purchases a home in a standard-cost area with a VA loan limit of $766,550 and the home price is $800,000, they would need to make a down payment of 25% on the $33,450 difference, equating to an $8,362.50 down payment.
This down payment structure allows veterans to afford homes that exceed the loan limit while still benefiting from the VA’s guarantee.
Table: VA Loan Limits vs. Conventional Loan Limits (2024)
| Loan Type | Standard Limit | High-Cost Area Limit |
|---|---|---|
| VA Loan | $766,550 | $1,149,825 |
| Conventional Loan | $726,200 | $1,089,300 |
Both VA and conventional loan limits are set based on FHFA guidelines, but VA loans offer added flexibility by allowing for higher no-down-payment borrowing in high-cost areas.
Advantages of High VA Loan Limits
Higher VA loan limits in 2024 mean that more veterans can access home financing without needing a down payment, even in areas where property values are high. With VA loans, veterans often secure more favorable terms, including lower interest rates and the absence of private mortgage insurance (PMI).
The absence of PMI alone can result in substantial monthly savings, especially for homes priced within high-cost limits. Additionally, because the VA guarantees a portion of the loan, lenders may be more willing to extend favorable loan terms.
“High loan limits and no PMI make VA loans highly competitive for veterans, particularly in high-cost areas. For many veterans, the VA loan program provides financial advantages that traditional loans simply can’t match.”
Frequently Asked Questions
What is the VA loan limit for 2024?
The standard VA loan limit for 2024 is $766,550, with high-cost areas reaching up to $1,149,825.
Do VA loan limits cap how much I can borrow?
No, VA loan limits only affect the no-down-payment threshold. Veterans can borrow above these limits but may need a down payment on the excess amount.
Can I buy a home above the VA loan limit without a down payment?
If you have full entitlement, there are no loan limits, allowing you to purchase homes with no down payment regardless of price.
What happens if I exceed the VA loan limit?
If you purchase a home above the loan limit, you’ll typically need a down payment equal to 25% of the difference between the limit and the purchase price.
How do VA loan limits differ in high-cost areas?
In high-cost counties, VA loan limits can go up to $1,149,825, allowing veterans to buy pricier homes with no down payment.
Can I use my VA loan benefit more than once?
Yes, veterans can reuse their VA loan benefits as long as they meet eligibility requirements and have sufficient entitlement remaining.
What determines my remaining entitlement?
Remaining entitlement depends on how much of your VA loan benefits you’ve previously used and repaid.
Is there a down payment required if I buy above the VA loan limit?
A down payment is only required on the excess amount above the VA loan limit, calculated at 25% of the difference.