USAVA Lending is a VA Approved Lender | NMLS ID 966439 | MB 0921703
10 2016

VA Basics: Loan Limits

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Loan limits are set amounts a qualified Veteran with full entitlement may borrow without a down payment. The U.S. Department of Veteran Affairs (VA) does have a set limited liability amount which affects the amount of money it lends per person. This liability amount becomes known as a loan limit. VA does not set a cap on how much you can borrow to finance your home. The liability amount affects the amount of money USAVA will lend you. The VA caps its loan guarantee to 25 percent of the total loan amount.


imageThe basic entitlement for each eligible veteran is $36,000 and USAVA will lend 4 times this amount with no down payment as long as the Veteran receives an approved certificate of eligibility (COE). The Veteran also needs to qualify with regards to income and credit and income-to-debt ratio. The property must also be appraised by an approved, licensed VA appraiser and the appraised value must be equal to or greater than the sales price of the home.


Because the value of a house depends in part on its location, loan limits vary by county. Taking that into consideration, the VA issues higher loan limits in costlier counties so qualifying veterans may purchase their home without having to put money down. The VA has set a new loan limit chart for 2016 effective January 1, 2016. Click here to find your state and county.

For 2016, the loan limits are as follows:

banner-resources Remaining entitlement


Veterans already participated in the VA loan program may still have a “remaining entitlement” for another VA loan. Lenders require that the remaining entitlement and any cash down payment equal at least 25 percent of the reasonable value or sales price of the property, whichever is less. A USAVA loan specialist will be able to tell you if you have any remaining entitlement credit. Give us a call today!

banner-rate-cutsJumbo Loans


Qualified veterans who wish to purchase past set limits certainly can. Home buyers considering a purchase above the county loan limit are in the  “jumbo” financing category. VA jumbo loans may be harder to qualify for than a traditional VA loan in terms of credit and other requirements. Jumbo borrowers may need a down payment to compensate for the higher loan amount. Jumbo loans do provide benefits for veterans looking for a larger mortgage.

Set guidelines for jumbo loans are as follows:

Veterans refinancing a jumbo loan may qualify for the following benefits: