Announcement 2025-085 2026 Loan Limits for VA Mortgages
2026 Loan Limits for VA Mortgages
Newrez LLC “Newrez” Approved Correspondent Clients: please note, effective for VA mortgages closed on or after January 1, 2026, the 2026 Conforming and High Balance Loan Limits that were recently issued by the Federal Housing Finance Agency (FHFA) will apply to all VA Purchase and Cash-out Refinance products.
FHFA Maximum Conforming Loan Limits (CLL) are not actual caps for VA loan amounts but are used for calculating the available loan guaranty for Veterans who have only partial entitlement (when the Veteran’s home loan benefit has been used and is not restorable). Veterans with full entitlement are not restricted by the CLL and are eligible for the maximum 25% entitlement guaranty of any loan amount.
For veterans with partial entitlement, the maximum amount of guaranty is the lesser of 25% of the loan amount or the applicable years conforming loan limit for a 1-unit property, reduced by the amount of the entitlement previously used by the veteran.
· If the loan is closing after Jan. 1, 2026, the partial entitlement calculation can be based on the 2026 conforming loan limits.
· If the loan is closing before Jan. 1, 2026, the partial entitlement calculation must be based on the 2025 conforming loan limits.
Please refer to the VA Product Profile for additional details.
Resources
· FHFA