What Are the VA Loan Limits For 2023?

5 Min Read

Updated Dec. 19, 2023

FACT-CHECKED

Written By

Victoria Araj

Home buyers who qualify for a VA loan can enjoy many perks with this loan type. One of those perks is relatively flexible VA loan limits. There are few formal limits tied to the VA loan, it’s helpful to know how much you can borrow.

Who Can Use A VA Loan?

VA loans are available for service members and veterans who meet the active-duty service requirements. Additionally, some surviving spouses are eligible to finance one.

Here’s how a VA loan can be used:

Buy a primary residence
Build a new home, rebuild or repair an existing home
Refinance an existing conventional or Federal Housing Administration (FHA) loan
Refinance an existing VA loan with a VA IRRRL Streamline Refinance

See What You Qualify For

Home Purchase

Home Refinance

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VA Loan Limits For 2023

If you have a full entitlement, you won’t find any VA loan limits. However, the amount eligible home buyers can borrow is limited by VA-approved lenders.

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 (COE) outlines your entitlement. Full entitlement means the VA will cover up to 25% of the loan amount.

In order to receive full entitlement, you’ll need to meet on of the following requirements:

First-time home buyer
Bought a home with a VA loan and repaid the loan in full
Home loan ended 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 (FHFA) – minus the amount of your entitlement that you’ve already used.

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 lender 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

What Will Lenders Use To Determine How Much They Are Willing To Lend You?

While the VA loan doesn’t have a set loan limit, most lenders set their own limits. The loan limit will vary based on several factors, including:

Credit score
Debt-to-income (DTI) ratio
Conforming or jumbo loan
Fixed-rate or adjustable-rate mortgage (ARM)
The size of the down payment

Generally, lenders prefer a credit score above 640.

Conforming VA Loans 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 2023, the limits range from $726,200 to $1,089,300.

In order to avoid a down payment, you’ll also need to meet credit score requirements.

VA Jumbo Loan Limits

Jumbo loans are non-conforming 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 exceed stricter credit score and DTI requirements for VA jumbo loans.

VA Loan Limit FAQs

You have questions about VA loan limits. We have answers.

How have the limits on VA loans changed?

In 2020, the VA loan limits were eliminated for loans of over $144,000. As of 2023, eligible VA loan borrowers don’t face a limit set by the VA.

Are there other costs associated with VA loans?

Although the VA loan doesn’t require a down payment, it does require VA funding fees. If you cannot pay these fees upfront, you can roll the amount into your loan.

Do I need to pay 20% down with a VA jumbo loan?

When pursuing a VA jumbo loan, you might not have to make a 20% down payment.

What is the 2023 limit for VA loans in my county?

The VA doesn’t set specific loan limits by county. However, the FHFA sets conforming loan limits, which range from $726,200 to $1,089,300.

The Bottom Line: VA Loans Don’t Limit You When Buying A Home

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, look to start an application for a VA loan today.