The 2020 change most websites still get wrong
For decades, VA loans were capped by county charts, and plenty of articles still talk as if they are. The law changed. Since January 1, 2020, a veteran with full entitlement can buy at any price a lender qualifies them for, with zero down, in any county. Million dollar VA loans close routinely now. What actually limits most buyers is income: the debt-to-income ratio and the residual income test, which is exactly what our affordability calculator measures.
When county limits still matter
Your entitlement is reduced, and county limits come back into play, if any of these is true:
- You have an active VA loan on a home you still own (including one that is now a rental)
- You lost a prior VA loan to foreclosure or short sale and did not repay the VA's loss
- You sold with an assumption and the buyer kept your entitlement tied to the loan
In these cases the math is: take 25% of your county's conforming loan limit, subtract the entitlement you are already using, and what remains is your available guaranty. Lenders will typically lend four times that remaining guaranty with nothing down. Want more house than that? You can still buy it, you just bring 25% of the difference as a down payment.
A worked example
A veteran keeps his first home as a rental with $100,000 of entitlement tied up in it, and shops in a standard county with an $806,500 limit. The county guaranty is 25% of that, $201,625. Minus the $100,000 in use leaves $101,625 of remaining entitlement, which supports about $406,500 of purchase with zero down. If his target home is $450,000, he needs 25% of the $43,500 gap, roughly $10,875 down, not the $90,000 a conventional 20% down loan would demand. This is the arithmetic behind the multi-property strategy in our guide.
How to restore full entitlement
- Sell the home and pay off the VA loan. Entitlement is fully restored and reusable.
- One-time restoration. Pay off the VA loan but keep the home (say, after a refinance into a conventional loan), and you can have entitlement restored once without selling.
- Repay a prior loss. If the VA paid a claim after a foreclosure, repaying it restores that entitlement.
Restoration is not automatic. It is requested through VA Form 26-1880, and your lender can pull the updated Certificate of Eligibility in minutes.
Frequently asked questions
What is the VA loan limit in 2026?
For full entitlement borrowers there is none. For reduced entitlement, your county's conforming limit applies; most counties use the FHFA baseline ($806,500 in 2025, updated every November) and high-cost counties run higher.
Can I really get a VA loan over $1 million?
Yes, with full entitlement and the income to qualify. Jumbo VA loans with zero down close regularly; the lender's own overlays, not the VA, are the constraint at very high amounts.
How do I find out how much entitlement I have?
Your Certificate of Eligibility shows it. Any VA lender can pull your COE electronically in minutes, or get it yourself on VA.gov.
Does having a VA loan as a rental block me from buying again?
No, it reduces rather than blocks. The calculator above shows exactly how much zero-down buying power your remaining entitlement supports, and the rent can even help you qualify.
What is "bonus entitlement"?
Lender slang for the second layer of entitlement tied to county limits that lets loans exceed the basic $36,000 guaranty. You do not need to track the layers: the 25% remaining-guaranty math above is what your lender actually uses.
My county is expensive. Is my limit higher?
If you have reduced entitlement, yes, high-cost counties carry limits above the baseline, up to 150% of it in places like parts of California, Hawaii, and the DC area. Check the FHFA county table or ask your lender.
Do VA loan limits apply to refinances?
IRRRL streamlines can refinance the full existing balance regardless of limits. Cash-out refinances follow entitlement math similar to purchases.
Is a bigger down payment ever smart on a VA loan?
Putting 5% or 10% down cuts the funding fee (2.15% to 1.5% or 1.25%) and lowers the payment. For exempt veterans the fee argument disappears, and $0 down usually wins.