What are the 2022 VA Loan Limits in Florida, Texas, Tennessee, and Alabama?
How do you calculate a VA maximum mortgage amount?

The VA home loan program can be an extremely powerful option which provides for well-known benefits such as no down payment, no monthly PMI, and flexible credit qualifying. However, the VA program can also be a secret weapon for financing larger loan amounts which is especially important when dealing with properties that have higher sales prices.

In today’s video I am going to explain the details surrounding VA loan limits and how VA entitlement factors into how high of a VA loan you can actually have.

Also, if you have not yet done, please take advantage of our free second opinion service (SOS) which is great for both new pre-qualifications and those loans currently in progress.  This is a great way to receive an expert second opinion, double-check where you stand, and make sure that all important financing stays on track!

What is VA Entitlement?

As a starting point, when I refer to the term “VA Entitlement” this means the amount available for an eligible veteran, service member, or surviving spouse to use towards a loan and it starts with a basic entitlement of $36,000 which lenders generally use for loan amounts up to $144,000.

Veterans also have what is called additional entitlement (bonus entitlement), for loan amounts higher than $144,000. Please note that additional entitlement, bonus entitlement, or tier 2 entitlement are terms used by VA when they communicate with lenders regarding loan amounts greater than $144,000.

With that being said, VA states the following for loan limits on mortgage amounts over $144,000:

“Eligible Veterans, service members, and survivors with full entitlement no longer have limits on loans over $144,000. This means you won’t have to pay a down payment, and we guarantee to your lender that if you default on a loan that’s over $144,000, we’ll pay them up to 25% of the loan amount.”

Remember that you will be considered to have full entitlement if any of these requirements are true:
• Your VA home loan benefit has never been used, or
• You previously paid a VA loan in full and then sold the property (i.e., Restoration of VA Entitlement) or
• Your VA home loan benefit was previously used, but experienced a foreclosure or short sale and have since repaid the VA in full.

When is there a maximum VA loan limit in Florida, Texas, Tennessee, and Alabama?

On the other hand, the county loan limit where the property is located will apply when you have remaining entitlement under any of the following situations:

- You have an active VA loan you are still paying back, or
- You paid a previous VA loan in full and still own the home, or
- You refinanced your VA loan into a non-VA loan and still own the home, or
- You had a foreclosure or short sale (compromise claim) on a previous VA loan and didn’t repay VA in full, or
- You had a deed in lieu of foreclosure on a previous VA loan (i.e., you transferred the home’s title to the bank that holds your mortgage to avoid foreclosure)

Please note that while this was only a brief summary and is not meant to encompass all VA loan limit and entitlement-related questions, it does provide key points to remember when calculating your maximum VA loan amount in Florida, Texas, Tennessee, or Alabama. If you have any VA loan limit questions or need help with calculating your VA entitlement please my team today so we can go to work for you!

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