Ensuring you can secure enough funding for a home is typically the first step you should take when you embark on your homebuying journey. Even if you’re already a homeowner and want to refinance, understanding the limits to how much you can borrow with a U.S. Department of Veterans Affairs (VA) loan is important to determine how it can affect your home financing needs.
As an active or veteran member of the U.S. military or surviving spouse, you have certain advantages when you obtain a VA loan. However, the processes, requirements and guidelines surrounding these types of loans occasionally change and can be complex if you’re not familiar with them. This includes VA loan limits.
As of January 2025, the standard VA loan limit is $806,500, which is a 5.2% increase from 2024 when it was $766,550. But what does this mean for your specific home financing goals and needs in 2025?
What are VA Loan Limits?
VA loan limits are essentially a cap on how much you can borrow on a VA loan without needing a down payment. Since these limits have increased in 2025, eligible homebuyers may be able to borrow more than previous years, potentially expanding their options for a dream home.
Due to the Blue Water Navy Vietnam Veterans Act of 2019, eligible veterans, active-duty service members and surviving spouses have been able to buy a home at any price with a VA loan as long as they have full entitlement and financially qualify. Those who do not have full entitlement are limited in what they can borrow.
In addition, these loan limits are different every year and can vary depending on your county. Learn more about the loan limits by county on this map from the Federal Housing Finance Agency (FHFA).
Example: Factoring in Entitlement
To help you understand how VA loan limits may affect your personal financial situation, we’ll run through an example with realistic numbers. Remember, if you have full entitlement, loan limits will not apply to you.
Let’s say you’re buying a home in a county with the 2025 standard VA loan limit of $806,500 and you’re already using $40,000 of your entitlement with another VA loan. The maximum entitlement in this county would be $201,625 since the VA guarantees a quarter or 25 percent of the loan amount. Maximum entitlement: $806,500 x 0.25 (25%) = $201,625.
Your remaining entitlement: $201,625 – $40,000 = $161,625. Most lenders won’t let you borrow more than four times the amount.
$161,625 x 4 = $646,500
In this example, you’d be able to borrow up to $646,500 in this county without needing to make a down payment. However, if you need or want to borrow more, you’ll need to put some money down. The VA website also has a calculator that can help you estimate how much you can borrow.
Types of VA Loans
If you’re thinking about getting a VA loan this year, you might be wondering about your options. Learn a little more about them below.
VA Purchase
Buying a home is a huge milestone and if it’s your first time doing so, a VA purchase loan may be well-suited to your needs. Lenders typically offer VA loans with competitive interest rates, no down payment or mortgage insurance and lower closing costs. Not only can you buy a home with a VA loan, but you may also be able to build or improve a home.
VA Interest Rate Reduction Refinance Loan (IRRRL)
For those of you who already have a VA loan and are thinking about refinancing, a VA IRRRL might work for you. These types of loans can help you secure a new, more favorable interest rate, lower monthly payments or more stable payments, and because you already have a VA loan, you might be able to go through the process more quickly and skip some paperwork.
Keep in mind that the VA requires you to wait 210 days (about seven months) from the time of your original loan closing date or after you’ve made six consecutive payments on your original loan before you can get a VA IRRRL.
VA Cash-Out Refinance
If you’ve been paying a mortgage for a while now, you may have built up enough equity in your home to turn it into cash. With a VA cash-out refinance, you can replace your current loan with a new one under different (and often more favorable) terms and receive the difference in cash.
Native American Direct Loan (NADL) Program
The NADL Program helps you buy, build or improve a home on federal trust land if you or your spouse are Native American. Your tribal government must already have an agreement with the VA about how the program will work on their land.
Know Your VA Advantages
No matter your goals, it’s imperative to understand how the new VA loan limits can affect your homebuying or refinancing ability this year. Depending on where you live or where you want to move to, make sure to do your research and look up the specific loan limits in your county. Additionally, don’t forget that you have resources to fall back on at the VA website if you’re unsure about your decision or need guidance.
This information is intended for educational purposes only. Products and interest rates subject to change without notice. Loan products are subject to credit approval and include terms and conditions, fees and other costs. Terms and conditions may apply. Property insurance is required on all loans secured by property. VA loan products are subject to VA eligibility requirements. Adjustable Rate Mortgage (ARM) interest rates and monthly payment are subject to adjustment. Upon submission of a full application, a mortgage banker will review and provide you with the terms, conditions, disclosures, and additional details on the interest rates that apply to your individual situation.
