The Department of Veterans Affairs has raised the VA home loan guaranty limit to $850,000 nationwide, with higher limits up to $1.2 million in designated high-cost areas, effective for loans originated after April 1, 2026.
What Changed
The increase reflects the rising cost of housing and ensures that veterans can use their earned benefit to purchase homes in markets where median prices have outpaced previous limits.
- Standard limit: $850,000 (up from $766,550)
- High-cost area limit: $1,209,750 (applies to 152 counties)
- Zero down payment maintained for loans within the limit
- Funding fee reduced to 1.25% for first-time VA borrowers (down from 1.4%)
Impact for Veterans
The higher limits are particularly significant in states like California, Hawaii, Virginia, and Washington where military families are concentrated near bases but struggle to afford housing. An estimated 180,000 additional veterans will qualify for zero-down purchases under the new limits.
