VA Loan Limits in Texas

The Numbers Speak: Substantial Increase in VA Loan Limits

 One of the most prominent updates is the substantial rise in the standard VA loan limit for most U.S. counties. 2023, the standard limit stood at $726,200, which rose to a robust $766,550 in 2024. This increase depicts the evolving housing market landscape, which aims to provide veterans or military service persons with greater purchasing power in today’s competitive real estate environment.

But the good news is not limited to these. VA loan limits have also witnessed a significant uptick for high-cost counties outside of Texas in areas where housing prices are likely to soar. The maximum loan amount for a single-family home in these areas now exceeds $1,149,825. This adjustment in the VA loan max amount acknowledges veterans’ unique challenges in regions with higher living costs. It ensures that they, too, get the benefits of the VA loan program.

Understanding VA Loan Limits: Beyond A Cap

It’s necessary to clarify that VA loan limits do not signify a cap or maximum loan amount that veterans can borrow. If you have full entitlement, no down payment is required. However, if you currently use your entitlement on a VA home loan, you would only have partial entitlement available. Given that, you may be required to pay a down payment.

How Do You Know Your Down Payment Would Be If You Currently Using Your Entitlement?

• Obtain your certificate of eligibility. We help you acquire the certificate through our lender’s portal with the VA.
• Review and understand your certificate of eligibility. Schedule a call, and our team will provide you with the details of your certificate of eligibility. We will then send you a copy and let you know the down payment calculation if you are currently utilizing your entitlement. 

If You Have Full Entitlement, You Don’t Have A Home Loan Limit

Eligible veterans or service members having full entitlement no longer have loan limits in Texas over $144,000. This means you don’t have to pay the down payment, and the US Department of VA guarantees your lender will pay up to 25% of the loan amount if you default on a loan above $144,000.
To have full entitlement, you must meet one of the following requirements:

• You have never availed of any home loan benefit or
• You have cleared the earlier VA loan in full and also sold the property, and in this case, you have your full entitlement restored or
• You have availed of your home loan benefit but experienced a foreclosure or compromise claim (also a short sale) and repaid the VA in full.

If You Have Remaining Entitlement, You Do Have A Home Loan Limit

If you have remaining entitlement, your VA home loan limits depend on the county loan limit where you reside. In case of default, VA will pay up to 25% of the county loan limit after deducting the entitlement you have already used.
You will have a remaining entitlement in one of the following cases:

• You currently have an active VA loan that you’re still paying back, or
• You cleared a previous VA loan in full but still own the home or
• You fully refinanced your VA loan into a non-VA loan and also have ownership of the home or
• You had a compromise claim on an earlier VA loan and didn’t repay VA in full or
• In case of a deed instead of foreclosure on a VA loan (i.e., you transferred your home’s ownership to the bank that holds your mortgage to prevent foreclosure) or
• You had encountered foreclosure on an earlier VA loan and didn’t repay VA in full.

Understanding Your Budget in Place of VA Loan Limits

While the Department of VA may not restrict VA loan limits in Texas, it’s essential to carefully plan your loan limit depending on the amount of payments that fits into your budget. This means your loan budget varies quite based on the average home prices in the area of Texas where you stay.
Key tips to consider while determining your loan budget:

• • Use an online mortgage calculator. Many banks or financial institutions offer useful online tools for automatically comparing your monthly income with debts. Subsequently, they recommend the home prices that you can afford.
  • Another alternative method is to calculate your VA home loan limits in Texas. It is a 28/36 rule, where 28% refers to the maximum amount of your monthly gross income that you should spend on home-buying expenses, and 36% represents the amount you should spend on paying your debts, including mortgage payments. 

How Does My County Loan Limit Affect Me?

If you are utilizing the remaining entitlement and your VA home loan maximum is over $144,000, you may have to make a down payment. The down payment applies here as the lenders need the entitlement and down payment to cover a minimum of 25% of your VA loan amount. When you can make a down payment or are willing to, you may be allowed to borrow more than the county loan limit and the VA-backed loan.  However, the lender still needs to approve the loan.
A lender determines the VA home loan maximum that you can afford by assessing your:

• • Credit score
  • Income
  • Assets (valuable financial assets including savings, retirement, and investment accounts).