Introduction

VA loans are an incredible benefit for veterans, making homeownership more accessible and affordable. But how do loan limits work, especially with recent changes for 2025? While eligible borrowers with full entitlement have no loan limits, partial entitlement borrowers are still subject to county loan limits. In this post, we’ll explain how VA loan limits work in 2025, what they mean for you, and how to maximize your borrowing power.

1. What Are VA Loan Limits?

VA loan limits are the maximum amount the VA will guarantee without requiring a down payment for borrowers with partial entitlement. They vary by county and reflect local housing market conditions.

For 2025:

• Standard County Limit: $806,500 for most U.S. counties.

• High-Cost Areas: Limits can go as high as $1,209,750 in counties with elevated home prices (e.g., parts of California).

Who Do Loan Limits Apply To?

• Borrowers with Full Entitlement: No loan limits. You can borrow as much as your lender approves without a down payment.

• Borrowers with Partial Entitlement: Loan limits determine how much you can borrow without a down payment.

2. What Changed with the Blue Water Navy Act?

The Blue Water Navy Act of 2019 eliminated loan limits for veterans with full entitlement. This means that eligible borrowers no longer have to worry about traditional loan limits when financing their primary residence.

Who Benefits the Most:

• Veterans purchasing homes in high-cost areas.

• Veterans buying properties that exceed the conforming loan limit.

3. How to Determine If You Have Full Entitlement

You have full entitlement if:

• You’ve never used a VA loan before.

• You’ve paid off a previous VA loan and sold the property.

• You refinanced a previous VA loan into a conventional loan.

If you have partial entitlement, your remaining borrowing power is determined by the county loan limit minus any entitlement already used.

4. How to Maximize Your Borrowing Power with Partial Entitlement

For veterans with partial entitlement, county loan limits play a significant role in determining how much you can borrow without a down payment.

Example:

• If the county loan limit is $806,500 and you’ve used $100,000 of entitlement, your remaining entitlement will cover up to $706,500.

Tips to Maximize Borrowing Power:

• Restore Your Entitlement: Pay off your existing VA loan and request entitlement restoration.

• Choose High-Cost Counties: Borrowing in areas with higher limits increases your potential loan amount.

• Work with a VA-Approved Lender: Experienced lenders can guide you through entitlement calculations and loan limits.

5. Full Entitlement Borrowers: No Loan Limits

For veterans with full entitlement, there’s no maximum loan amount set by the VA. Your borrowing power depends solely on:

• Your creditworthiness.

• Your residual income.

• The lender’s criteria.

This makes it easier to buy high-value properties without worrying about loan limits or down payments.

Conclusion

VA loan limits for 2025 reflect the evolving housing market, with standard county limits set at $806,500 and high-cost areas reaching up to $1,209,750. For veterans with full entitlement, the elimination of loan limits offers even greater flexibility. Whether you have full or partial entitlement, understanding VA loan limits and entitlement can help you make the most of your benefits.

Ready to explore your VA loan options? Contact Loan Squad today for expert guidance and personalized support.