Home buyers who qualify for a mortgage backed by the Department of Veterans Affairs can enjoy many perks with this loan type. One of those perks is flexible VA loan limits. There are few formal limits tied to the VA loan, and it’s helpful to know how much you can borrow so you can figure out how much house you can afford.
Key Takeaways:
- Active-duty service members or veterans with full entitlement can get a VA loan without any limits on how much they can borrow.
- Eligible borrowers can still use what’s left over from their entitlement, or remaining entitlement, to help secure another loan after their first.
- While limits are not set by the VA, the Federal Housing Finance Agency’s county limits and banks will determine the maximum VA loan amount you can borrow for a home.
Who Can Use A VA Loan?
VA loans are available for military service members and veterans who meet the active-duty service requirements. Additionally, some surviving spouses are eligible for a VA loan.
A VA loan can be used to:
- Buy a primary residence
- Build a new home, rebuild or repair an existing home
- Refinance an existing conventional or FHA loan
- Refinance an existing VA loan with a VA IRRRL Streamline Refinance
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VA Loan Limits For 2024
The VA offers what’s called an entitlement for your mortgage. This is basically insurance that goes to your mortgage lender in case of a default.
If you have a full entitlement, you won’t find any VA loan maximum on loans over $144,000. A down payment won’t be required for these loans, meaning you can close on a home with less cash on hand.
However, the amount eligible home buyers can borrow is limited by VA-approved lenders. For example, you can find VA jumbo loans up to $1.5 million with no down payment, but this will likely require a strong credit score. If you’re seeking a VA jumbo loan of $2 million, you’ll likely need both a strong credit score and a down payment.
“You, of course, can purchase a home that sells for more than the amount the VA will guarantee, but you will likely have to pay a down payment to make that happen,” says Omer Reiner, Realtor and Owner of FL Cash Home Buyers LLC in Fort Lauderdale, Florida. “And if there is a portion of a loan that isn’t guaranteed, that can make some lenders a little skittish.”
Overview Of VA Loan Limits
The limit on a VA home loan is the amount the VA will cover in case you default on your loan. This is not to be confused with the maximum amount you can borrow; the lender sets that maximum, not the VA.
Importance Of Knowing VA Loan Limits
If you have remaining entitlement, you’ll need to know how much insurance the VA will offer mortgage lenders. Since most lenders require that you cover at least 25% of the mortgage, you may need to provide a down payment to cover what your remaining entitlement won’t.
When Do VA Loan Limits Apply?
VA home loan limits only apply when you have remaining entitlement, meaning your once-full entitlement has been used and not restored.
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How Do Your VA Entitlements Affect The Amount You Can Borrow?
While the VA isn’t the lender and doesn’t tell lenders how to make their lending decisions, it does make a determination about how much insurance it is willing to provide lenders on a loan. The amount of insurance is known as your entitlement, and it covers up to 25% of the loan amount.
Full Entitlement
Your Certificate of Eligibility, or COE, outlines your entitlement. Full entitlement means the VA will cover up to 25% of the loan amount in case of a default.
In order to receive full entitlement, you’ll need to meet one of the following requirements:
- Be a first-time home buyer or have never used your VA home loan benefit
- Have previously bought a home with a VA loan, sold the property, and repaid the loan in full
- Have your previous home loan end in foreclosure or short sale and repaid the loan in full
Remaining Entitlement
If your COE indicates that you have a remaining entitlement, there are limits on the amount you can borrow. The VA will pay up to 25% of the county loan limit – as defined by the Federal Housing Finance Agency – minus the amount of your entitlement that you’ve already used. Your down payment will cover the remainder of that 25%.
You can use your remaining entitlement to purchase a second home with another VA loan.
You may have a remaining entitlement if you:
- Are repaying an active VA loan
- Purchased your home with a VA loan, have repaid it in full and still own the home
- Refinanced a previous VA loan into a non-VA loan and still own the home
- Entered into a short sale of a home purchased with a previous VA loan and didn’t repay the VA in full
- Signed over ownership of a home you purchased with a VA loan to your lender through a deed in lieu of foreclosure
- Had a foreclosure on a previous VA loan and didn’t repay the VA for its loss
Examples Of Entitlement Scenarios
Let’s say you purchased a home with a VA-backed loan. After some time, you sold the home and used some of that money to pay off the entirety of the loan. You now have a full entitlement once again and can use that benefit to purchase a new home without a down payment.
Now let’s imagine a slightly different scenario: You purchased a home with a VA-backed loan and eventually repaid the loan, but this time you still own the home. In this case, you won’t have full entitlement and may have to make a down payment if you’re looking to purchase a new home.
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Determining The Maximum Loan Amount
While the VA loan doesn’t have a set loan limit, most lenders set their own limits. You’ll want to get a loan that can cover the cost of your home, so it’s essential to understand how the VA max loan amount is set in 2024.
Factors Lenders Consider
The loan limit will vary based on several factors, including:
- Credit score
- Debt-to-income ratio
- Whether it’s a conforming or jumbo loan
- Whether it’s a fixed-rate or adjustable-rate mortgage
- The size of the down payment
In order to be approved for a VA loan limit, you should have a DTI ratio of 41% or below. In other words, 41% or less of your gross monthly income should go toward paying off debt obligations. However, you can still get a VA loan if your DTI ratio is above this limit due to tax-free income, and the residual income surpasses the acceptable limit by around 20%.
In order to avoid a down payment, you may also need to meet credit score requirements. Although the VA itself doesn’t set a minimum credit score in order for you to qualify for a loan, individual lenders have their own requirements. They’ll often seek a minimum credit score of around 620. Keep in mind that larger-than-average loans may require an even higher score to convince lenders you’re a safe bet.
Conforming VA Loan Limits
If you are taking out a VA loan that meets the conforming loan limits set by the FHFA, then you usually won’t have to make a down payment. But buyers looking for a larger loan might have to make a down payment on their VA home loan. The FHFA limits vary from county to county. But as of 2024, the limits for a one-unit property range from $766,550 to $1,149,825.
VA Jumbo Loan Limits
Jumbo loans are nonconforming loans with loan amounts that exceed the FHFA loan limit. The higher loan amount represents a higher risk for the lender. With that, you can generally expect stricter credit score and DTI ratio requirements for VA jumbo loans.
As the size of the jumbo loan increases, the criteria to get approved increases as well. For example, a jumbo loan of $2 million will necessitate a down payment and a higher credit score compared to a jumbo loan of $1.25 million.
VA Loan Limits By County For 2024
Every year, the FHFA updates the cap for conforming loans by county. Here are the ranges found within each state for a conforming loan for a one-unit property.
VA Loan County Limit Range By State
| State | Lowest County Limit | Highest County Limit |
|---|---|---|
| Alabama | $766,550 | $766,550 |
| Alaska | $1,149,825 | $1,149,825 |
| Arizona | $766,550 | $766,550 |
| Arkansas | $766,550 | $766,550 |
| California | $766,550 | $1,149,825 |
| Colorado | $766,550 | $1,149,825 |
| Connecticut | $766,550 | $766,550 |
| Delaware | $766,550 | $766,550 |
| Florida | $766,550 | $929,200 |
| Georgia | $766,550 | $766,550 |
| Hawaii | $1,149,825 | $1,149,825 |
| Idaho | $766,550 | $1,149,825 |
| Illinois | $766,550 | $766,550 |
| Indiana | $766,550 | $766,550 |
| Iowa | $766,550 | $766,550 |
| Kansas | $766,550 | $766,550 |
| Kentucky | $766,550 | $766,550 |
| Louisiana | $766,550 | $766,550 |
| Maine | $766,550 | $766,550 |
| Maryland | $766,550 | $1,149,825 |
| Massachusetts | $766,550 | $1,149,825 |
| Michigan | $766,550 | $766,550 |
| Minnesota | $766,550 | $766,550 |
| Mississippi | $766,550 | $766,550 |
| Missouri | $766,550 | $766,550 |
| Montana | $766,550 | $766,550 |
| Nebraska | $766,550 | $766,550 |
| Nevada | $766,550 | $766,550 |
| New Hampshire | $766,550 | $862,500 |
| New Jersey | $766,550 | $1,149,825 |
| New Mexico | $766,550 | $766,550 |
| New York | $766,550 | $1,149,825 |
| North Carolina | $766,550 | $766,550 |
| North Dakota | $766,550 | $766,550 |
| Ohio | $766,550 | $766,550 |
| Oklahoma | $766,550 | $766,550 |
| Oregon | $766,550 | $766,550 |
| Pennsylvania | $766,550 | $1,149,825 |
| Rhode Island | $766,550 | $766,550 |
| South Carolina | $766,550 | $766,550 |
| South Dakota | $766,550 | $766,550 |
| Tennessee | $766,550 | $943,000 |
| Texas | $766,550 | $766,550 |
| Utah | $766,550 | $1,149,825 |
| Vermont | $766,550 | $766,550 |
| Virginia | $766,550 | $1,149,825 |
| Washington | $766,550 | $977,500 |
| West Virginia | $766,550 | $1,149,825 |
| Wisconsin | $766,550 | $766,550 |
| Wyoming | $766,550 | $1,149,825 |
High-Cost Counties
Counties with more expensive real estate have higher limits on conforming loans to match. Loudoun County, Virginia, is one such location, known to have the highest median household income in the country. To help residents afford houses in this location, the conforming loan cap is set at the highest amount available: $1,149,825.
Other counties known for pricey homes and loan limits of $1,149,825 are Los Angeles County and New York County.
Standard-Cost Counties
Most counties across the United States have a maximum conforming loan limit set at $766,550. Even expensive states like Massachusetts have a significant number of counties with this limit, such as Worcester County. While many loan limits in California reach $1,149,825, most counties in the state are set at the $766,550 level.
Changes In VA Loan Limits Over The Years
The VA loan has a long history since its creation in 1944. It began as a way to give veterans an opportunity to build a life after coming home from World War II. These VA loans guaranteed up to 50% of the loan, with a cap of $2,000 total.
It wasn’t long before $2,000 wasn’t enough. As real estate prices climbed over the years, the program has adjusted the benefit to meet the market.
One major change occurred on June 25, 2019, when the U.S. government removed loan limits for those with full VA loan entitlement, further helping active-duty service members and veterans afford more expensive properties. This law took effect Jan. 1, 2020.
In the past year alone, the conforming loan limit – and thus the VA loan limit – increased from $726,200 to $766,550 for most counties, a 5.6% increase to continue to match rising prices across the country.
“One of the good things about VA loans is that they have actually changed to meet rising housing costs, which can’t be said about every type of loan!” says Reiner.
FAQ
You have questions about the 2024 VA loan limits. We have answers.
The Bottom Line
If you qualify for a VA loan, you won’t have to worry about loan limits standing between you and your dream home. As you move forward with the home buying process, be sure to take full advantage of this lifelong benefit.
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Michael Rosenthal
Michael Rosenthal is a writer and editor based in Los Angeles. He brings a decade's worth of experience working in finance, tech, education and entertainment. In his free time, he enjoys both table tennis and regular-size tennis.
