2025 VA Loan Limits: What Borrowers Need to Know
For veterans and active-duty service members, VA loans remain one of the best paths to homeownership.
In 2025, VA loan limits continue to be a key factor for those seeking financing, especially in high-cost areas.
Understanding how these limits work, where they apply, and how they impact your borrowing power can help you navigate the home-buying process with confidence.
In this Article
What Are VA Loan Limits?
For 2025, the standard VA loan limit remains at $806,500, while high-cost counties can allow up to $1,209,750 for a single-family home.
- Standard Counties: Maximum loan amount without a down payment is $806,500.
- High-Cost Counties: In pricier real estate markets, the limit reaches $1,209,750.
If you’re a veteran planning to buy a home or refinance your VA loan, understanding these loan limits is essential for financial planning.
Do VA Loan Limits Apply to You?
Many veterans assume that VA loan limits cap the total amount they can borrow, but that’s not the case. Loan limits only affect how much you can borrow without a down payment if you have partial entitlement.
If you have full entitlement, you are not subject to VA loan limits—meaning you can borrow as much as a lender is willing to approve, without a down payment.
Who Has Full Entitlement?
You have full entitlement if:
- You’ve never used your VA loan benefit.
- You’ve paid off a previous VA loan and had your entitlement fully restored.
- You had a foreclosure or short sale but repaid the full loan balance.
For those with partial entitlement, VA loan limits do apply, meaning you may need to make a down payment if your loan amount exceeds the county’s limit.
“Understanding how VA entitlement affects loan limits is key for veterans. Many borrowers mistakenly believe they have a hard cap on borrowing when, in reality, full entitlement removes loan limits altogether.”
How VA Loan Limits Are Determined
VA loan limits are based on the Federal Housing Finance Agency (FHFA) conforming loan limits, which are adjusted annually based on housing market conditions.
The loan limit structure is as follows:
- Standard limit: $806,500
- High-cost county limit: $1,209,750
2025 VA Loan Limits by County
| County | VA Loan Limit |
|---|---|
| Los Angeles, CA | $1,209,750 |
| San Diego, CA | $1,209,750 |
| Denver, CO | $806,500 |
| Honolulu, HI | $1,209,750 |
| New York, NY | $1,209,750 |
| Dallas, TX | $806,500 |
High-cost areas have higher loan limits due to elevated housing prices. This ensures that veterans can still purchase homes without a down payment, even in expensive markets.
VA Loan Limits vs. Conventional Loan Limits
VA loans are structured differently than conventional loans, which also have borrowing limits.
| Loan Type | Standard Limit | High-Cost Limit |
|---|---|---|
| VA Loan | $806,500 | $1,209,750 |
| Conventional Loan | $766,550 | $1,149,825 |
Since VA loans don’t require PMI, veterans save hundreds on their mortgage payments compared to conventional loans with less than 20% down.
“A key benefit of VA loans is their flexibility. Even if loan limits apply, veterans still get more favorable terms than conventional loans, especially when it comes to interest rates and mortgage insurance.”
VA Loan Limits and Down Payments
One of the biggest perks of VA loans is no down payment. However, if you exceed the loan limit and have partial entitlement, you’ll need to make a down payment.
How Down Payments Work if You Exceed the Limit
The VA requires a down payment equal to 25% of the difference between your loan amount and the VA loan limit.
Example Scenario:
- You’re buying a home for $850,000.
- Your county’s loan limit is $806,500.
- The difference is $43,500.
- Your down payment = 25% of $43,500 = $10,875.
Even with a down payment, this is still much lower than what conventional loans require.
How to Calculate Your VA Loan Entitlement
If you’ve used your VA loan benefit before, your entitlement is reduced based on how much you previously borrowed.
Here’s how to check:
- Look at your Certificate of Eligibility (COE).
- If it says full entitlement, you have no loan limit.
- If it shows partial entitlement, loan limits apply.
Example:
- If your previous VA loan was $250,000, you might have $556,500 in remaining entitlement in a standard-cost county.
This means you could borrow up to $806,500 without a down payment, but anything above that requires a down payment.
FAQs About 2025 VA Loan Limits
What is the VA loan limit for 2025?
The standard VA loan limit for 2025 is $806,500, while high-cost counties have limits up to $1,209,750.
Do VA loan limits restrict how much I can borrow?
No, loan limits only affect the amount you can borrow without a down payment if you have partial entitlement.
Can I buy a home over the VA loan limit without a down payment?
Yes—if you have full entitlement, you can borrow above the limit without a down payment.
How does the VA loan limit affect down payments?
If you exceed the county loan limit and have partial entitlement, you’ll need to pay 25% of the excess amount as a down payment.
Are VA loan limits higher in expensive housing markets?
Yes, in high-cost counties, VA loan limits can go up to $1,209,750.
Can I use my VA loan benefit more than once?
Yes, you can reuse your VA loan benefits as long as you have remaining entitlement or restore it after paying off a previous VA loan.
Does my VA loan limit change if I move?
Yes, if you move to a high-cost county, your loan limit increases, allowing for a larger loan amount without a down payment.
What happens if I have two VA loans at once?
If you’re using a second VA loan, your loan limit applies, and you may need a down payment based on your remaining entitlement.
