2025 VA Loan Limits Are Increasing – What This Means for Veterans and Homebuyers!
In 2025, the Department of Veterans Affairs (VA) has updated its VA Home Loan limits, impacting veterans and active-duty service members seeking VA Home Loans. Understanding these changes is crucial for maximizing your VA home loan benefits.
Key Updates to VA Loan Limits in 2025:
- Standard Loan Limit Increase:
- The baseline conforming loan limit for one-unit properties has risen to $806,500, a 5.2% increase from 2024’s limit of $766,550.
- High-Cost Area Adjustments:
- In high-cost counties, the ceiling loan limit for one-unit properties is now $1,209,750.
- Full Entitlement Borrowers:
- Eligible veterans with full entitlement have NO loan limits.
- This means you can borrow without a down payment, provided the lender approves the loan amount.
- Partial Entitlement Borrowers:
- If you have remaining entitlement due to an active VA loan or prior default, the new 2025 loan limits apply.
- These limits determine the maximum loan amount you can obtain without a down payment.
- If you already have a VA loan and are planning to move to a new county while using your VA loan benefit again, our partner lender can calculate your loan limit to help you understand your bonus entitlement for a second VA loan. Contact us today!
Understanding Your Entitlement:
- Full Entitlement:
- Meet eligibility requirements. No active VA loans or previous defaults.
- No loan limits; borrowing capacity depends on lender approval.
- Partial Entitlement:
- Existing VA loan or prior default.
- Subject to county-specific loan limits for zero-down financing.
- How do I find out how much entitlement that I have left? Obtain your Certificate of Eligibility or contact our partner lender to do the calculations for you. Certificate of Eligibility
Calculating Loan Limits with Partial Entitlement:
Contact our Partner Lender to do a VA loan limit calculation for you.
Conclusion:
The 2025 VA loan limit adjustments offer increased opportunities for veterans and service members in the housing market. Whether you have full or partial entitlement, comprehending these changes is vital for informed decision-making.
It’s essential to know that you can have more than one active VA loan and reuse your VA entitlement multiple times. This is a common misconception, but understanding this can help you fully maximize your VA home loan benefits.
