VA Loan Limits

The Basics

Effective January 1, 2020, there is NO LIMIT to the price of a home that you can buy with a VA loan as long as you have FULL VA LOAN ENTITLEMENT.

What does "No Limit" mean?

As long as you financially qualify for the loan amount, the VA will guarantee it. 

What does "Full VA Loan Entitlement" mean?

For Active Duty or recently transitioned military personnel, you will generally qualify for "full entitlement" after serving 90 continuous days. (For more details on confirming whether you qualify or not, click here)

If you have not used a VA loan already, you qualify for full entitlement. 

If you have used a VA loan in the past, you may have reduced entitlement.

How to determine remaining entitlement:

The first step in determining your remaining entitlement, is to determine the maximum entitlement in the county which you are looking to buy. To understand how this work, the VA guaranty is 25% of the loan limit. So to determine the entitlement in the county you are looking to buy, divide the loan limit by 4. 

  • Example: You want to buy a second home in San Diego County, with a VA Loan Limit of $701,500. So $701,500 / 4 = $175,375.   

The next step is to subtract the entitlement that you have already used on your first house:​

  • Example: You bought your first home for $200,000 in Pensacola with a $0 down VA loan. The VA guarantees 25% of the loan amount, so $200,000 / 4 = $50,000. So you have used $50,000 in available entitlement.

 

Now to figure out how much entitlement you have left to use in San Diego, subtract the amount used ($50,000) from the maximum entitlement in San Diego County ($175,375), which equals $125,375 in available entitlement. 

Since the entitlement is 25% of the loan amount, multiply $125,375 times four, and you can purchase a home for $501,500 with a $0 down VA loan.

  

What if I want to buy a more expensive home?

If your remaining entitlement is not enough to cover the purchase price of the second home you desire, you have a couple options:

  1. Refinance out of a VA loan and into a Conventional loan

  2. Sell your first home

  3. Pay 25% of the difference between entitlement amount and purchase price of the second home

Option One: Refinancing

 

You could potentially refinance your first home "out of" a VA Loan, and "into" a conventional loan. This will be a good option if your first home has appreciated significantly in value, or if you have had it a while and have paid down the loan balance. Typically, in order to refinance the first home into a conventional loan, you will need between 20-30% equity in the home. If you are still living in the home as your primary residence, you may be able to refinance with 20% equity, but if it is not owner-occupied, it's more likely that a lender will require at least 30% equity. This comes out to what is called the Loan-to-Value ratio, or LTV. So the new loan will need to be approximately 70% of the value of the house. 

  • Example: You owe $150,000 on your Pensacola home, and the market value of the house is now $210,000. A new loan on the house will pay off the $150,000 owed with a new loan, and it's LTV is $145,000 / $210,000 = .69 x 100 = 69%

Once the VA Loan has been paid off, your VA entitlement should be restored to 100%.

Option Two: Selling

If you don't have enough equity in your first home to refinance into a conventional loan, but you have enough equity to sell it and pay all the associated costs, then disposing of the property will therefore dispose of the VA loan, and restore full entitlement.

Option Three: Pay 25% of the Difference between purchase price and entitlement amount 

If Option One won't work for you, and Option Two is either not feasible or undesirable to you, the third option is to pay 25% of the difference in the purchase price and your remaining entitlement. The VA is essentially guaranteeing 25% of the entitlement amount, so in order to qualify for a loan greater than your available entitlement, you need to cover the difference.

  • Example: You want to buy a second home for $500,000 in San Diego County. You have $455,975 remaining entitlement, so the difference between purchase price ($500,000) and remaining entitlement ($455,975) is $44,025. So in order to buy the house for $500,000, you will have to put down 25% of $44,025, or $11,006.25.

As a final point, the entitlement amount is not the only consideration when attempting to use a second VA loan. The VA Funding Fee also increases on subsequent uses of the VA loan. It is often a best practice to put at least 5% down on the purchase price for the subsequent use of a VA loan, unless you are exempt from VA Funding Fees. See the related article below for more information.

Related: VA Funding Fees

Additional Resources: Obtaining VA Certificate of Eligibility

DISCLAIMER: The content presented here is for informational and illustrative purposes only. You situation may be unique and fall outside the scope of the information here. The intent is to get you to think about this situation, but not to take action. It is recommended that you consult with a qualified loan officer to help guide you through the VA loan process and the unique characteristics and requirements for the VA loan. 

 

2020 VA Loan Limits

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Alabama
All Areas
$510,400
Alaska
Aleutians East
$765,600
Alaska
Aleutians West
$765,600
Alaska
All Other Areas
$765,600
Alaska
Anchorage
$765,600
Alaska
Bethel
$765,600
Alaska
Bristol Bay
$765,600
Alaska
Dellingham
$765,600
Alaska
Denali
$765,600
Alaska
Fairbanks North Star
$765,600
Alaska
Haines
$765,600
Alaska
Hoonah-angoon Census Area
$765,600
Alaska
Juneau
$765,600
Alaska
Kenai Peninsula
$765,600
Alaska
Kodiak Island
$765,600
Alaska
Kuslivak Census Area
$765,600
Alaska
Lake and Peninsula
$765,600
Alaska
Matansuka Susitna
$765,600
Alaska
Nome
$765,600
Alaska
North Slope
$765,600
Alaska
Northwest Arctic
$765,600
Alaska
Petersburg Census Area
$765,600
Alaska
Prince of Wales-hyder Census Area
$765,600
Alaska
Sitka
$765,600
Alaska
Skagway
$765,600
Alaska
Southeast Fairbanks
$765,600
Alaska
Valdez Cordova
$765,600
Alaska
Wrangell
$765,600
Alaska
Yakutat
$765,600
Alaska
Yukon Koyukuk
$765,600
Arizona
All Areas
$510,400
Arkansas
All Areas
$510,400
California
Alameda
$765,600
California
All Other Areas
$510,400
California
Contra Costa
$765,500
California
El Dorado
$569,250
California
Los Angeles
$765,600
California
Marin
$765,600
California
Mono
$529,000
California
Monterey
$672,750
California
Napa
$764,750
California
Orange
$765,600
California
Placer
$569,250
California
Sacramento
$569,250
California
San Benito
$765,600
California
San Diego
$701,500
California
San Francisco
$765,600
California
San Luis Obispo
$690,000
California
San Mateo
$765,600
California
Santa Barbara
$625,500
California
Santa Clara
$765,600
California
Santa Cruz
$765,600
California
Sonoma
$704,950
California
Ventura
$713,000
California
Yolo
$569,250
Colorado
Adams
$575,000
Colorado
All Other Areas
$510,400
Colorado
Arapahoe
$575,000
Colorado
Boulder
$644,000
Colorado
Broomfield
$575,000
Colorado
Broomfield
$575,000
Colorado
Clear Creek
$575,000
Colorado
Douglas
$575,000
Colorado
Eagle
$750,950
Colorado
Elbert
$575,000
Colorado
Garfield
$765,600
Colorado
Gilpin
$575,000
Colorado
Jefferson
$575,000
Colorado
Lake
$625,500
Colorado
Park
$575,000
Colorado
Pitkin
$765,600
Colorado
Routt
$638,250
Colorado
San Miguel
$625,500
Colorado
Summit
$625,500
Connecticut
All Other Areas
$510,400
Connecticut
Fairfield
$601,450
Delaware
All Areas
$510,400
District of Columbia
District of Columbia
$765,600
Florida
All Other Areas
$510,400
Florida
Monroe
$552,000
Georgia
All Other Areas
$510,400
Georgia
Greene
$515,200
Hawaii
Hawaii
$765,600
Hawaii
Honolulu
$765,600
Hawaii
Kalawao
$765,600
Hawaii
Kauai
$765,600
Hawaii
Maui
$765,600
Idaho
All Other Areas
$510,400
Idaho
Blaine
$625,500
Idaho
Camas
$625,500
Idaho
Lincoln
$625,500
Idaho
Teton
$765,600
Illinois
All Areas
$510,400
Indiana
All Areas
$510,400
Iowa
All Areas
$510,400
Kansas
All Areas
$510,400
Kentucky
All Areas
$510,400
Louisiana
All Areas
$510,400
Maine
All Areas
$510,400
Maryland
All Other Areas
$510,400
Maryland
Anne Arundel
$520,950
Maryland
Baltimore
$520,950
Maryland
Baltimore City
$520,950
Maryland
Calvert
$765,600
Maryland
Carroll
$520,950
Maryland
Charles
$765,600
Maryland
Frederick
$765,600
Maryland
Harford
$520,950
Maryland
Howard
$520,950
Maryland
Montgomery
$765,600
Maryland
Prince Georges
$765,600
Maryland
Queen Annes
$520,950
Massachusetts
All Other Areas
$510,400
Massachusetts
Dukes
$765,600
Massachusetts
Essex
$690,000
Massachusetts
Middlesex
$690,000
Massachusetts
Nantucket
$765,600
Massachusetts
Norfolk
$690,000
Massachusetts
Plymouth
$690,000
Massachusetts
Suffolk
$690,000
Michigan
All Areas
$510,400
Minnesota
All Areas
$510,400
Mississippi
All Areas
$510,400
Missouri
All Areas
$510,400
Montana
All Areas
$510,400
Nebraska
All Areas
$510,400
Nevada
All Areas
$510,400
New Hampshire
All Other Areas
$510,400
New Hampshire
Rockingham
$690,000
New Hampshire
Strafford
$690,000
New Jersey
All Other Areas
$510,400
New Jersey
Bergen
$765,600
New Jersey
Essex
$765,600
New Jersey
Hudson
$765,600
New Jersey
Hunterdon
$765,600
New Jersey
Middlesex
$765,600
New Jersey
Monmouth
$765,600
New Jersey
Morris
$765,600
New Jersey
Ocean
$765,600
New Jersey
Passaic
$765,600
New Jersey
Somerset
$765,600
New Jersey
Sussex
$765,600
New Jersey
Union
$765,600
New Mexico
All Areas
$510,400
New York
All Other Areas
$510,400
New York
Bronx
$765,600
New York
Dutchess
$726,525
New York
Kings
$765,600
New York
Nassau
$765,600
New York
New York
$765,600
New York
Orange
$726,525
New York
Putnam
$765,600
New York
Queens
$765,600
New York
Richmond
$765,600
New York
Rockland
$765,600
New York
Suffolk
$765,600
New York
Westchester
$765,600
North Carolina
All Other Areas
$510,400
North Carolina
Camden
$625,500
North Carolina
Pasquotank
$625,500
North Carolina
Perquimans
$625,500
North Dakota
All Areas
$510,400
Ohio
All Areas
$510,400
Oklahoma
All Areas
$510,400
Oregon
All Areas
$510,400
Pennsylvania
All Other Areas
$510,400
Pennsylvania
Pike
$765,600
Rhode Island
All Areas
$510,400
South Carolina
All Areas
$510,400
South Dakota
All Areas
$510,400
Tennessee
All Other Areas
$563,500
Tennessee
Cannon
$563,500
Tennessee
Cheatham
$563,500
Tennessee
Davidson
$563,500
Tennessee
Dickson
$563,500
Tennessee
Hickman
$534,750
Tennessee
Macon
$563,500
Tennessee
Maury
$563,500
Tennessee
Robertson
$563,500
Tennessee
Rutherford
$563,500
Tennessee
Smith
$563,500
Tennessee
Sumner
$563,500
Tennessee
Trousdale
$563,500
Tennessee
Williamson
$563,500
Tennessee
Wilson
$563,500
Texas
All Areas
$510,400
Vermont
All Areas
$510,400
Virginia
Alexandria City
$765,600
Virginia
All Other Areas
$510,400
Virginia
Amelia
$535,900
Virginia
Arlington
$765,600
Virginia
Caroline
$535,900
Virginia
Charles City
$535,900
Virginia
Chesterfield
$535,900
Virginia
Clarke
$765,600
Virginia
Colonial Heights City
$535,900
Virginia
Culpeper
$765,600
Virginia
Cumberland
$535,900
Virginia
Dinwiddie
$535,900
Virginia
Fairfax
$765,600