VA Loans And Maximum Loan Limits
November 30, 2011 
Joe Wallace 
There is much information available about VA loan limits, but sometimes some confusion as well. The Department of Veterans Affairs states in its rules for lenders that there is no set dollar amount limit on a VA home loan.
This statement is technically true–the VA does not have a dollar amount limit set as an across-the-board VA loan limit. But there are VA loan limits set by county. Borrowers who search for VA loan limits in Texas, for example, will discover that most areas feature a VA loan limit of $417,000.00 and a “maximum guaranty” of $1,000,000.
It’s understandable why borrowers new to the VA loans program could be confused by these numbers. The VA loan limit for Texas counties of $417,000 is the maximum amount a qualified borrower can be approved for when applying for a VA insured home loan on a single-family home with no money down.
This limit represents the maximum available for the transaction and does not take into account the borrower’s entitlement, credit qualifications or other circumstances–the borrower may or may not be qualified to borrow that much, the VA simply states the maximum available for the qualified VA home loan applicant.
The maximum guaranty of $1,000,000 mentioned above is the maximum amount a veteran with full entitlement could qualify for under the right conditions including the borrower providing a required down payment. This amount does NOT feature a no-money-down option and is subject to lender requirements, credit qualifying criteria, etc.
It’s important to point out that in these circumstances, VA loan rules require the borrower to make a down payment on any loan amount above and beyond the no-money-down VA loan limit, but the VA guaranty extends to the full loan amount if the borrower qualifies.
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Under VA loans with co-signors:
A veteran seeking a mortgage for the second time has a legally married spouse that will be a co-signor in the loan. In addition a second eligible veteran will also be a co-signor in the loan. VA is supposed to divide the “entitlement charge” equally between them. Please explain what does “entitlement charge” means? Can you give a simple example as part of the explanation? thanks
Hi Nelson, where do you find the references to an “entitlement charge”? Is this in a VA publication? Can you provide the reference? I don’t recognize the phrase as a VA term–the documentation could be referring to the VA loan funding fee, but it’s hard to tell without more context.