Before 2020, VA loans were effectively capped at the local conforming loan limit for any veteran who wanted to finance with $0 down. That changed with one piece of legislation, and it's the single biggest structural upgrade the VA loan benefit has seen in decades.
What the Blue Water Navy Act changed
The Blue Water Navy Vietnam Veterans Act of 2019, effective January 1, 2020, eliminated VA loan limits for borrowers with full entitlement. A veteran with full entitlement can now borrow whatever amount a lender is willing to approve, with $0 down, regardless of the county conforming loan limit.
This did not change VA loan limits into infinity for everyone — it specifically applies to full entitlement. If you're not sure whether you have full entitlement, your Certificate of Eligibility will show it; see our COE guide.
Who loan limits still apply to
Loan limits still matter for borrowers with reduced or partial entitlement — meaning you have an active VA loan already, or a prior VA loan that was not restored after a default. For those borrowers, the applicable limit equals the FHFA conforming loan limit for the property's county.
2026 conforming loan limits
- Baseline (most counties): $832,750
- High-cost ceiling: $1,249,125 — applies in Alaska, Hawaii, Guam, and the U.S. Virgin Islands, and in designated high-cost counties on the mainland, which fall somewhere between the baseline and ceiling depending on local home prices.
Why this matters if you already have a VA loan
If you're using remaining entitlement to buy a second home — a common scenario during a PCS move — the conforming limit for the new property's county is exactly what caps how much you can finance with no extra down payment. See our entitlement and second-home guide for the math on how remaining entitlement, the conforming limit, and your down payment interact.
The practical bottom line
- Full entitlement, first VA loan (or fully restored): no loan limit, $0 down, any price the lender approves.
- Partial entitlement, second VA loan: loan capped effectively at the county conforming limit unless you cover the gap with cash down.
Always confirm your exact entitlement status with your lender before assuming either scenario applies — a small clerical detail on a prior loan (for example, whether it was ever restored) changes which rule governs your file.
Sources: VA Loan Limits — va.gov/housing-assistance/home-loans/loan-limits/; FHFA Conforming Loan Limits — fhfa.gov/data/conforming-loan-limit; VA Lenders Handbook M26-7.