VA Loan Limits: What You Need To Know

Jun 16, 2023 By Susan Kelly

Are you considering the purchase of a home using your hard-earned VA loan benefits? You may face some immediate questions about what you need to know to get qualified and limitations on how much you can borrow under the VA program. Prospective homeowners must understand their options when applying for this type of financing to make the best decisions possible.

We'll discuss common questions related to VA Loan Limits, from eligibility criteria to limits set by geography and more – so that veteran and military families have all the facts regarding loans backed by the US Department of Veterans Affairs.

What are VA Loan Limits

The biggest limit to bear is the maximum loan amount the VA backing will support. Generally, the most a veteran or military family can borrow is $484,350 across all states (with some exceptions for particularly high-cost areas). This total includes all closing costs and any associated fees or charges associated with your loan application.

When purchasing a home, different requirements depending on where you live and the property type being purchased. For instance, if you are buying a single-family home in most parts of the country, you may qualify for up to 100% financing – but this isn't true everywhere; in many cases, only 90%, 95%, or even 97.5% of the cost of the home can be covered by a VA loan.

In addition to geographical differences, there are different requirements for how much you can borrow for different properties. For example, suppose you are purchasing a condo or manufactured home.

In that case, you may only qualify for up to 90% financing, while if you're buying a multi-family property (2-4 units), the limit is 98%. Researching these details before committing to any purchase with your VA loan benefits is important.

Different Types of VA Loans

The VA Loan Limits program offers a variety of different loan options, including:

Cash Out Refinance

This option allows veterans or their surviving spouses to refinance existing mortgage debt into a VA loan with more favorable terms.

Interest Rates Reductions Refinancing Loans (IRRRL)

Also known as the "VA Streamline," this refinancing option is for those who already have an existing VA loan and want to lower their monthly payments on the same property by reducing the interest rate.

Native American Direct Loan (NADL)

A special program that assists Native American vets in purchasing, improving, or building homes on federal trust land.

Adapted Housing Grants

Special grants are designated for disabled veterans who need to modify their homes to accommodate a disability-related need.

Understanding how these different loan options work and what VA Loan Limits apply in each case is important. For instance, the maximum VA loan limit for a cash-out refinance $625,500 across all states except Hawaii and Alaska.

On the other hand, the highest amount that can be borrowed with an IRRRL is $424,100, regardless of where you live. Additionally, Native American Direct loans have a total cap of $80,000, and Adaptive Housing Grants come with a limit of up to $90,364, depending on the veteran's disability rating.

Factors That Affect Your VA Loan Limit

In addition to program-specific limits, certain factors may affect the amount of money you can borrow with a VA loan. These include:

Your Credit Score and Debt-to-Income Ratio

The higher your credit score and the lower your debt-to-income ratio, the more likely you will be approved for a larger loan amount.

Property Type and Location

As mentioned above, different types of properties (such as condos or multi-family homes) have unique limits when qualifying for VA loans. Additionally, some states have higher maximums than others due to cost of living factors; if you're looking to purchase a home in one of those areas, you may qualify for a larger loan than in others.

The US Department of Veterans Affairs sets VA Loan Limits, which can vary slightly from one geographical area to another. Veterans and their families must understand these limits before applying for a loan so they can make informed decisions about their home purchase or refinance. With this knowledge, you'll be better equipped to take advantage of all your hard-earned VA benefits.

Benefits of Having a VA Loan Limit

  • Flexible Terms: VA loan limits are flexible and can be tailored to fit your individual needs. You can choose between different loan terms such as 15, 20, 25, or even 30-year mortgages; depending on your situation, a longer mortgage term gives you lower monthly payments and more manageable debt in the long run.
  • Lower Costs: Generally speaking, VA loans come with lower closing costs than other types of home loans due to exemptions offered by the Department of Veterans Affairs. When comparing different financing options, you could save money on upfront fees and other associated expenses.
  • No Private Mortgage Insurance: Unlike conventional home loans, which require PMI (private mortgage insurance) when the down payment is less than 20%, VA loans require no such insurance. This could save you hundreds of dollars each month on your mortgage payments.
  • Easier to Qualify: VA loan limits are based on a variety of factors, including income, credit score, and debt-to-income ratio, all of which make it easier for veterans and their families to qualify for financing even with less-than-perfect credit scores or high levels of existing debt.
  • Competitive Interest Rates: Due to the Department of Veterans Affairs' backing, many lenders offer competitive interest rates with VA loans much lower than those associated with other types of home loans – meaning you'll have more money in your pocket at the end of the month.
  • Streamlined Refinancing Options: With VA loans, you can benefit from an interest rate reduction refinancing loan (IRRRL), a simplified procedure made to make it simpler for veterans and their families to refinance their current mortgages into more advantageous terms in order to lower monthly payments or pay off debt sooner.

VA Loan Limits are important when considering different financing options for your home purchase or refinance. By understanding these limits and how they work, you'll be better equipped to take full advantage of all your hard-earned benefits as a veteran.


What is the VA loan limit for 2023 in Texas?

The VA loan limit for a single-family home in Texas for 2023 is $523,250. For manufactured homes, the maximum amount is $356,362, and for multi-family properties (2-4 units), it's $1,063,550.

Do I have to live in the property I purchase with my VA loan?

No, you do not have to live in the property purchased with your VA loan; however, you must intend to occupy it as a primary residence at some point during the loan's term.

Does the VA loan limit ever change?

The VA loan limits are periodically adjusted based on market trends and prevailing home values in different locations. It's important to be aware of any changes to ensure you take full advantage of your benefits.


In conclusion, knowing the VA loan limits is important when looking into obtaining a VA loan. Knowing specific information about the loan limits and their regulations can help ensure your experience with the VA loan process goes as smoothly and efficiently as possible. Proceed cautiously before signing any documents regarding these loans, thoroughly researching every option available to make an informed decision that fits your financial needs. Finally, when securing a VA loan, always stay within the limits set by the VA, or you may pay for it in high-interest payments.

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