VA Loan Limits for 2025

In this blog, we will cover and discuss VA loan limits on how much home you can buy with a VA loan. VA loans no longer have maximum VA loan limits. Before 2010, VA loan limits used to depend on where the property is located and the type of property the borrower is financing.  In this article, we will discuss and cover how VA loan limits worked prior to 2010 when the Veterans Administration got rid of the maximum VA loan limits. VA loan limits used to depend on two factors:

• VA loan limits on VA loans used to depend on the area the subject property was located
• VA loan limits used to depend on the county where the subject home was located

VA Loan Limits Depends on the Type of Property

Loan Limits will also depend on the type of property that is being financed:

• Homebuyers can finance a one to four-unit property
• VA loan limits used to be higher for a four-unit property than they will be for a three-unit
• VA loan limits was higher for a three-unit than it would be a two-unit
• VA loan limits on VA loans are higher for a two-unit than a one-unit

In this article, we will discuss and cover the benefits of VA mortgages.

About VA Mortgages

VA loans are probably the best mortgage loans any borrower can get. This is due to the no money down feature on a home purchase.

With the combination of 100% financing and if the buyer gets up to a 4% down payment in seller concessions there is no money out of pocket on a home purchase.

4% seller concessions are the most VA will allow from sellers to offer a home buyer sellers concessions. This is so buyers can use it towards their closing costs, the home buyer will have to come up with zero money to close on their home and get the keys.

Benefits of VA Mortgages

Here are the three best features of VA loans:

• No money down
• 100% financing
• 4% sellers concessions by home sellers
• Upfront VA Funding Fee can be rolled into the VA Loan or paid with seller concessions
• No monthly mortgage insurance premium

VA loans have one of the lowest mortgage rates out of all loan programs.

Qualification Requirements For VA Loans

The Veterans Administration has more lenient agency mortgage guidelines than other mortgage loan programs. To qualify for a VA loan, the borrower needs the following:

• Served in the United States Military.
• Have an honorable discharge.
• Have a valid Certificate of Eligibility or CEO from the Department of Veteran Affairs.
• VA does not have a minimum credit score requirement.
• It is up to the lender to set credit score requirements.
• Gustan Cho Associates has no overlays on VA loans.
• VA does not have a maximum debt to income ratio requirements.
• However, most lenders want debt to income ratios below 55% DTI.
• Gustan Cho Associates just go off an approve/eligible per Automated Underwriting System.
• A lot of our clients have approve/eligible per AUS with credit scores down to 500 FICO and debt to income ratio over 65% DTI.
• The only requirement we require on VA loans is an AUS Approval.
• $0 Money Down.
• 100 Financing for VA loans.
• 4% seller concessions allowed on VA loans.

How VA Loan Limits Work

The way VA loan limits work are as follows:

• The United States Department of Veterans Affairs sets VA loan limits.
• VA Loans are capped by the VA loan guarantee of up to 25% of the total VA loan amount.
• VA will limit or cap their VA loan guarantee.
• It is like a form of mortgage insurance.
• This, in turn, affects the amount of money lenders are willing to fund on VA loans.
• Lenders stick and adhere to the VA Guidelines.
• Then originate and fund VA loans to borrowers who qualify for VA loans.
• The United States Department of Veteran Affairs VA is not a lender and does.
• VA does not originate, fund, or service VA loans.
• VA loans are originated, funded, and serviced by lenders who are VA approved.

VA guarantees loans that have been originated and funded by lenders in the event borrowers default on their VA loans and that loan goes against foreclosure.

Updated VA Loan Limits

VA loans are the best mortgage loan programs but VA loans are not for everyone. VA loans are limited to Veterans of the United States Armed Services with an honorable discharge and a valid Certificate of Eligibility or COE. Veterans with a COE are eligible to purchase a condominium, townhome, single-family home, or a one to a four-unit owner-occupant residential home with no money down with a VA loan.

The updated VA loan limits as of 2020 are there is no longer a maximum VA loan limits requirement in specified areas throughout the United States.

However, the Veterans Administration will use the conforming loan limits in median and high-cost areas as a benchmark. Any VA loan higher than the conforming loan limit of $806,500 is considered high-balance VA loans or VA Jumbo loans. Maximum high-balance conforming loan limits for 2025 are $1,209,750 in high-cost areas.  In most areas of the country, the maximum conforming loan limits set by the Federal Housing Finance Agency are capped at $806,500. Eligible homebuyers with a valid certificate of eligibility can qualify for VA loans with zero money down and 100% financing. There are 235 high-cost counties in the United States that do not have maximum VA loan limits on VA loans.

VA Lender With No Lender Overlays

If you are looking for a VA mortgage lender who will just go off an approve/eligible and no lender overlays, contact us at Gustan Cho Associates at 800-900-8569 or text us for a faster response. Or email us at gcho@gustancho.com. We just go off Automated Underwriting System findings and have no lender overlays on VA loans.

Updated VA Loan Limits on the Veterans Administration Eliminating Cap on VA Loans

Prior to this new law, the VA loan limits was the same as Conforming Loan Limits at $806,500. The VA loan limits guidelines UPDATE now allows active and/or retired members of the United States Military and eligible surviving spouses to qualify for VA loans without worrying about the maximum loan limit.

Eligible borrowers with a valid Certificate of Eligibility (COE) can now qualify for a VA loan with no money down in any county of the U.S. with 100% financing.

Many eligible veterans who can afford a higher loan limit were priced out of the escalating housing market due to going over the previous maximum VA loan limits of $806,500. Now eligible veterans do not have to worry about going with a Jumbo loan. The new VA loan limits UPDATE enables these VA borrowers to purchase homes with no money down. The new law on eliminating VA loan limits went into effect on January 1st, 2021.

Changes In Mortgage Guidelines

There were many changes in mortgage guidelines HUD, the parent of FHA, recently announced FHA will be reducing the loan to limit cap on FHA Cash-Out Refinance Loans from 85% to 80% LTV. The new loan limit UPDATE takes effect for VA loans dated January 1, 2020, or after.

Currently, any borrowers who needed a VA loan higher than the $806,500 down payment had to bring in a down payment. The VA only insured VA loans up to $806,500.

Any homebuyers with a higher down payment needed to come up with 25% of the additional amount on top of the $806,500. For example, prior to the VA Loan UPDATE, if a homebuyer wanted to purchase a $906,500 home with a VA loan, the VA will insure up to $806,500. With the new VA loan limits UPDATE, the homebuyer does not have to come up with any money no matter how much the property is.

Other Changes In Addition To The VA Loan Limits Guidelines Update

The VA loan limits guidelines UPDATE is a developing story. We will update our viewers as more details are released. The Department of Veterans Affairs normally puts out an updated circular with any changes made by the VA.

Lenders are looking forward to the updated circular prior to 1/1/2020. The VA recently announced loan to value on VA Cash-Out Refinances will be reduced to 90% from the current 100% LTV.

Follow us on Gustan Cho Associates for the latest updates on government and conforming loans and the latest breaking news.

VA Loan Limits for 2025

What Are VA Loan Limits in 2025?

In 2025, veterans can expect the VA standard loan limit for a single-family home to be $806,500. This amount is up 5.2% over the 2024 limit of $766,550. If you’re buying in a high-cost county, the limit is even higher at $1,209,750.

These figures come from the FHFA’s conforming loan limits, which the VA uses to set its backing when a borrower has partial entitlement. The guarantee works with those limits to streamline the home-buying process for service members and their families.

Are VA Loan Limits Still in Effect?

Full Entitlement — No Down Payment Cap

If you have full VA entitlement, VA loan limits no longer apply to you. This lets qualifying veterans:

• Never used their VA loan benefit.
• Finished paying off a previous VA loan and sold the home, or
• Paid back the VA in full after a foreclosure or short sale.

These veterans can get a loan with no maximum amount if their lender sets it based on their credit, income, and other factors.

Partial Entitlement — Limits Still Matter

If you have a partial entitlement —usually when you still have an active VA loan or your entitlement hasn’t been restored—then the conforming loan limits still count. These limits show how much the VA will back (usually 25% of the loan amount) and decide if you need a down payment.

How VA Loan Limits Affect One- to Four-Unit Properties

VA loans can finance multi-unit properties—up to four units—but when your lender figures out entitlement or loan limits, they look at the single-unit amount, not the four-unit totals. This means the limits for a one-unit home will guide how your loan is calculated, not the duplex, triplex, or four-plex amounts.

So, whether you’re planning to buy a duplex, triplex, or four-plex, VA lenders work off the one-unit limit—$806,500 or $1,209,750 in high-cost zones.

Putting It All Together — Borrowing Scenarios

Borrower with Full Entitlement

No VA loan limit applies.

• Borrow as much as the lender says you can, with zero down.
• The VA doesn’t cap the total price, but you must stay within your budget and lender rules.

Borrower with Partial Entitlement

• VA backs up to 25% of the conforming loan limit for your county.
• Take off any entitlement you’ve already used to see what’s left.
• Multiply that leftover by 4 for a rough idea of how high you can go with zero down.
• If you go over, the down payment kicks in.

Frequently Asked Questions (FAQ) on VA Loan Limits

Q1: What is a One-Unit Property’s 2025 VA Loan Limit?

A: The limit is $806,500, or $1,209,750 in high-cost areas.

Q2: Does “No VA Loan Limit” Mean Veterans Can Borrow Any Amount?

A: Only veterans with full entitlement can skip VA-set dollar limits. The amount you can borrow depends on your lender and overall financial health.

Q3: How Do VA Loan Limits Work With Multi-Unit Properties?

A: When financing a property with one to four units, the VA considers only the one-unit conventional loan limit for calculation purposes.

Q4: Why Were The VA Loan Limits “Eliminated”?

A: The VA removed dollar limits for veterans with full entitlement in 2020. The rules in 2025 extend this policy while also adjusting conforming limits for users with partial entitlement.

Q5: How is VA Entitlement Calculated?

A: The VA backs 25% of the loan amount. For partial entitlement loans, the calculation starts with the conforming loan limit for the borrower’s county, reduced by any entitlement already used. The leftover entitlement times four shows the loan amount veterans can get with zero down.

Summary: Key Takeaways

• 2025 Conforming Loan Limits: $806,500 in typical markets and $1,209,750 in high-cost regions.
• Full Entitlement: Loan limits drop; the lender’s approval is key, and sometimes zero down is still on the table.
• Partial Entitlement: Dollar caps are based on conforming ceilings; key formulas set the down-payment numbers.
• Multi-Unit Properties: Current formulas still apply the single-unit conforming threshold.

If you need more information—like loan limits for particular counties, tips on regaining entitlement, or property-type examples—ask!

Start Mortgage Process With New VA Loan Limits Guidelines Update

Why trust Gustan Cho Associates for your VA home loan? All of our mortgage underwriters of VA loans are VA SAR/LAPP certified. Not all mortgage lenders can say this. Our team at Gustan Cho Associates are experts in originating the toughest VA files.

Over 80% of our borrowers are folks who either were stressing at other lenders and/or have recently gotten a VA Loan Denial due to the lender’s overlays.

All of our loan officers are available 7 days a week, on evenings, weekends, and holidays. To have a VA Champion in your corner and start the VA loan process with a lender with no overlays, contact us at Gustan Cho Associates at 800-900-8569 or text us for a faster response. Or email us at gcho@gustancho.com. The team at Gustan Cho Associates is available seven days a week, evenings, weekends, and holidays.