Homebuyers

Servicemembers and Veterans Celebrate: VA Loan Limits Increase in 2026

Servicemembers and veterans who use a VA loan to buy a home may be able to increase their purchasing power in 2026.

Those without their full U.S. Department of Veterans Affairs (VA) loan entitlements will be eligible to borrow about 3.25% more in 2026.

The new loan limits for these government-backed loans will go up to $832,750 in most of the country in 2026. In the priciest housing markets, the maximum VA loan limit will go up to $1,299,500. These are the same loan limits as for mortgages backed by Fannie Mae or Freddie Mac.

Veterans with their full entitlements aren’t subject to loan limits, as that limit was eliminated for VA loans in 2020. Borrowers with full entitlements are generally able to borrow as much as a lender will offer them.

“There are so many great benefits for VA loans,” said Stephen Moye, a New American Funding sales manager in San Diego. “We can’t thank our veterans enough.”

For borrowers with full entitlement, VA guarantees 25% of the loan amount. These are buyers who haven’t previously bought a home with a VA loan, have used the benefit but paid off the loan and sold the property, or had a foreclosure or short sale and repaid the loan in full.

Those who have more than one current VA loan, defaulted on a previous VA loan, or haven’t repaid a previous VA loan are generally subject to the loan limits. They may also be required to make a down payment.

VA loans are popular with members of the military, veterans, and eligible spouses (in some cases) because these mortgages don’t require a down payment. They also don’t require private mortgage insurance (PMI.)

And these loans typically offer lower mortgage rates than other types of mortgages.

However, VA borrowers are responsible for paying a one-time funding fee to help cover the cost of the loan. These loans must also be used only for primary residences.

To qualify for a VA loan, borrowers must have served for at least 90 days during wartime, done 181 continuous days of active service during peacetime, or put in six or more years in the National Guard or National Reserves.

Surviving spouses of a servicemember who died in the line of duty or from a service-related disability may also be able to qualify if they haven’t remarried.

“Anything that helps veterans get into homes is a good thing,” said Moye.

Stephen Moye NMLS # 268619