VA home loans provide a great benefit to those who have served in this great country. The program is one of the last mortgages that still allows up to 100% financing for eligible veterans. Not only is the program no money down, but VA also has protection in place for Vets like secure fix interest rates and limitations on buyer closing cost expenses.
New 2025 VA Loan Limit Changes:
In the past, VA loans typically limited the allowed loan amount size a borrower could get approved for. This limit would mirror the conforming loan limit, which is currently set to $806,500 for 2025 in most parts of the country. However, the Blue Water Navy Vietnam Veterans Act from a few years ago lifted the loan limits in the past. This is especially good for Veterans living in more expensive high-cost locations as it expands their options. Many lenders now offer 100% VA loans up to $2mil.
Please note, that the elimination of loan limit caps does not assume Veterans can/will qualify for unlimited loan amounts. Buyers must still qualify based on their, credit, debt to income ratios (DTI) just the same as other mortgage programs. Additionally, Vets using their VA loan benefits for a 2nd or 3rd time could still have imposed loan limits.
VA Funding Fee 2025:
In addition to the removal of loan limit caps, the VA has also adjusted the funding fee chart, please see below. VA Funding fees are one-time charges in place to reimburse the lender in the event of loan default. Having this fee in place also reduces the burden on the American taxpayer. The good news is VA loans still do not require monthly mortgage insurance or “PMI” costs like many Conventional, FHA and USDA loans.
The VA funding fee for first-time use Vets financing 100% will be 2.15% of the loan amount. The fee for subsequent-use mortgages will be 3.3%
Special notes about the new VA Funding Fee:
- Military Veterans who are considered 10% or more disabled by VA receive a VA funding fee exemption.
- Active-duty service members who are Purple Heart recipients will be exempt from paying the funding fee.
- National Guard and reservists used to pay slightly higher funding fees, this was eliminated years ago as all military members will pay the same.
- Funding fees can be rolled into and included in the entitled Veteran’s loan amount, not required to be paid out of pocket at closing.
VA Funding Fee Chart January 2025
| If your down payment is… | Your VA funding fee will be… | |
|---|---|---|
| First use | Less than 5% | 2.15% |
| 5% or more | 1.5% | |
| 10% or more | 1.25% | |
| After first use | Less than 5% | 3.3% |
| 5% or more | 1.5% | |
| 10% or more | 1.25% |
Contact us 7 days a week to learn more about any of the government-backed USDA, FHA or VA home loans. Just submit the Info Request Form on this page to connect with a specialist 7 days a week.