VA Loan Limits (2026): Entitlement Rules Made Simple

Your VA loan limit isn’t what’s stopping you - your strategy is.

Every month, thousands of veterans believe an invisible cap is blocking them from buying. In reality, most aren’t limited by the VA at all. They’re limited by misunderstood entitlement and unclear affordability math - and that confusion can cost years of delayed ownership or tens of thousands in lost equity.

Here’s the uncomfortable truth:

Most qualified VA buyers can still buy with $0 down in 2026 - even above traditional county loan limits.

So why the confusion?

Because “VA loan limits” don’t mean what people think they mean. They’re not a maximum home price. They’re not a lender cap. And for veterans with full entitlement, they often don’t apply at all. What actually matters is how entitlement, income, BAH, and lender underwriting work together - and almost no one explains that clearly.

That misunderstanding has real financial consequences.

Example:

A veteran who believes they’re capped at a county limit may:

• Delay buying 12–24 months
• Miss out on appreciation
• Keep renting while home prices rise

That hesitation alone can mean $30,000–$80,000 in lost equity -not because of VA rules, but because of bad information.

2025 Update: VA loan rules continue to allow full-entitlement borrowers to buy with no official loan cap, even as home prices and county limits adjust. The opportunity is still there - but only if you understand how to use it.

This guide breaks it down simply, with real scenarios, county examples, and BAH-driven affordability math - so you know exactly where you stand before you assume you’re limited.

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Each month you wait with the wrong assumption = equity you’ll never get back.

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If you only read one section, make it this one - because this is where most veterans get misled.

Here’s the key distinction most lenders don’t explain clearly:

• VA loan limits do NOT equal the maximum home price you can buy
• They only determine how much the VA guarantees - not how much a lender can approve
• If you have full entitlement, the VA doesn’t cap your loan amount at all
• Limits only come into play if you’ve already used some of your entitlement and haven’t restored it

Many buyers assume:

“My county limit is $766,550, so I can’t go above that.”

In reality, that assumption alone can:

• Push buyers to smaller homes they don’t need
• Delay buying while prices rise
• Leave $40,000+ in buying power unused

Not because of VA rules - but because of misapplied limits.

VA loan limits only apply if you’ve already used part of your entitlement. If you haven’t, your buying power is driven by affordability, not an arbitrary cap.

County limits only matter in specific scenarios - primarily for buyers who’ve already used part of their VA entitlement. For everyone else, these numbers are simply a guarantee reference point, not a purchase cap.

These figures align with FHFA baseline and high-cost loan limits, which the VA uses to determine how much of a loan it will guarantee - not how much a lender can approve you for.

Here’s where most buyers get tripped up:

• These limits do not cap your home price if you have full entitlement
• They do not automatically require a down payment
• They only matter if you have partial entitlement and exceed the guaranteed amount

Example: A buyer with partial entitlement purchasing above their county limit may need a small, strategic down payment - often far less than the 10–20% required with conventional loans.

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Misreading county limits can cause buyers to:

• Avoid high-opportunity neighborhoods unnecessarily
• Assume $0 down isn’t possible
• Delay buying while prices and rates move against them

That hesitation alone can cost $25,000–$60,000 in missed appreciation over just a few years.

Let’s break down how VA loan limits play out in the states that matter most to military buyers - with real-world context, not generic rules.

Texas is one of the most misunderstood VA markets.

• Most Texas counties fall under standard VA loan limits
• That does not mean buyers are capped at ~$766,550
• Veterans with full entitlement regularly purchase above $800,000 with $0 down, subject to income and approval

• Strong home inventory
• No state income tax (more qualifying power)
• Large military presence = VA-savvy lenders

• Conventional 10% down on an $800k home = $80,000 upfront
• VA loan with full entitlement = $0 down

That’s $80,000 you keep liquid, not tied up in a down payment.

Florida is where county limits actually matter - especially along the coast.

• Coastal counties often qualify as high-cost areas
• Buyers with partial entitlement may need a small strategic down payment
• Full entitlement buyers often still qualify for $0 down, even in high-cost zones

• The required down payment is often far smaller than expected
• In many cases, it’s 5% or less above the guaranteed amount

• 15–20% down avoided
• No PMI
• Competitive VA rates

Georgia is quietly one of the best VA loan states in 2025.

• Most counties fall under standard limits
• Home prices remain relatively affordable
• BAH aligns well with median mortgage payments, boosting approval odds

For many Georgia-based service members:

• $0 down remains realistic
• Monthly housing costs stay close to BAH
• Less pressure to stretch DTI ratios

A VA buyer using BAH effectively can qualify for more home than a civilian with the same base pay - without taking on extra risk.

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Veterans don’t stall because of VA loan limits. They stall because they don’t know how much home their income actually supports, especially when BAH is part of the equation. And that’s where VA loans quietly outperform conventional loans.

Unlike many civilian buyers, service members can often count Basic Allowance for Housing (BAH) as qualifying income. That alone can unlock tens -sometimes hundreds -of thousands more in buying power.

Here’s what VA lenders look at when determining how much you can afford:

• Base income + BAH (often fully countable)
• Debt-to-income ratio (DTI)
• VA residual income guidelines (unique to VA loans)

Residual income is critical. Instead of approving loans purely on ratios, the VA wants to ensure you have enough money left each month after housing and debts - which protects buyers from overextending.

A service member earning the same base salary as a civilian - but receiving $2,400/month in BAH - may qualify for significantly more home with a VA loan.

Why?

• BAH increases usable income
• No PMI lowers monthly payment
• Residual income standards work in your favor

Quick Wallet Math

• $2,400/month in BAH = $28,800/year
• Over a 30-year loan, that income recognition can support $150,000–$250,000 more in purchase power, depending on rates and debts

Most civilians never get this advantage. Veterans do - but only if they know how to use it.

Many VA buyers:

• Under-shop their budget
• Assume they’re capped by “loan limits”
• Rent longer than necessary

That hesitation can mean $20,000–$50,000 in missed equity over just a few years.

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• VA eligibility check
• Zero-down scenarios

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Buying in a high-cost area with a VA loan can feel intimidating - mostly because the rules are rarely explained clearly. The reality? For many veterans, VA loans are still one of the most powerful ways to buy expensive homes with less cash risk - if you understand the tradeoffs.

$0 Down With Full Entitlement

Even in high-cost counties, buyers with full entitlement can often purchase without a down payment - something almost no other loan program allows at this price point.

No PMI (Permanent Monthly Savings)

Avoiding private mortgage insurance can save $300–$700 per month on higher-priced homes - money that stays in your pocket every single month.

Competitive Interest Rates

VA loans frequently offer lower rates than conventional loans, which compounds savings over time on larger balances.

Example Savings Snapshot

• $900,000 home
• Conventional loan w/ PMI: +$400–$600/month
• VA loan w/ full entitlement: $0 PMI

That’s $5,000–$7,000 per year avoided - not a one-time perk, but ongoing savings.

Stricter Appraisal Standards: VA appraisals focus on safety and livability. In competitive markets, this can sometimes require negotiation or repairs - but it also protects buyers from overpaying.

Partial Entitlement Complexity

If you’ve used your VA benefit before, high-cost purchases may require:

• Entitlement calculations
• Possible small, strategic down payments
• Lender expertise (this is where many deals fall apart)

The problem isn’t the VA loan - it’s working with someone who doesn’t understand entitlement math.

Veterans who succeed in expensive markets almost always do one thing differently:

They work with a VA-specialized lender who understands entitlement, county limits, and affordability strategy - not just basic underwriting.

Get that right, and a high-cost area doesn’t have to mean a high-risk purchase.

Understanding VA loan limits is only half the win. The real advantage comes from keeping more cash in your pocket after you buy - not handing it away in fees, commissions, or unnecessary costs.

That’s where reAlpha’s rebate model changes the math.

Most buyers don’t realize how much money they leave on the table at closing. With reAlpha, the more you bundle, the more your savings compound:

That’s money you can:

• Lower your monthly payment
• Offset closing costs
• Stay liquid after purchase

And unlike rate shopping, this is immediate, guaranteed savings - not hypothetical projections.

Every month you delay:

• Home prices continue to move
• Rent payments build zero equity
• Rebates you could’ve claimed disappear

You’ve already earned your VA benefit. This is how you stack it with modern buyer rebates to maximize it.

See how much you could save with reAlpha

Each month you wait = savings and equity you’ll never reclaim.