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    VA Entitlement & Loan Limits

    VA Loan Limit in Texas: How Entitlement Works in 2026

    "What's the VA loan limit in Texas?" is a question I hear often from military families around Killeen, Belton, and Temple. The short answer: if you have full entitlement, the VA doesn't set a loan limit. If you've used your benefit before and haven't had it restored, a county loan limit comes into play, and that's where the math matters.

    I'm Taylor Ring, a Mortgage Loan Officer with Fairway Independent Mortgage Corporation (The Wood Group) in Belton, near Fort Hood. This page covers limits, entitlement, and the funding fee only. For the overview of VA benefits, see my VA loans in Texas page.

    Start With Your Certificate of Eligibility (COE)

    Your COE shows your VA home loan entitlement, which is the amount of the VA's guaranty to your lender. You can request it online through VA, through your lender (lenders can often pull it through VA's online system), or by mail using VA Form 26-1880 (VA).

    Two terms show up again and again:

    • Basic entitlement ("tier 1"): $36,000. This is the most VA will pay your lender on a loan of $144,000 or less if you default. It is not the amount you can borrow.
    • Bonus entitlement ("tier 2"): The guaranty for loans above $144,000. It isn't printed on your COE; it's calculated.

    Full Entitlement: No VA Loan Limit

    According to VA, if your COE shows basic entitlement of $36,000, you have full entitlement, and you don't have a loan limit, as long as you can afford the loan and the appraisal supports the price (VA entitlement and limits). For loans above $144,000, VA guarantees up to 25% of the loan amount.

    You generally have full entitlement if:

    • You've never used your VA home loan benefit, or
    • Your used entitlement was restored (see below)

    Full Entitlement Is Not Unlimited Buying Power

    Your lender still has to approve the loan based on your credit, income, debts, and assets. VA doesn't require a minimum credit score, but lenders may set their own. And the maximum VA loan on a property is the lower of the appraised value or the purchase price.

    The 2020 Blue Water Navy Act Change

    This rule is newer than many people realize. The Blue Water Navy Vietnam Veterans Act of 2019 (Public Law 116-23) changed the VA guaranty for loans closed on or after January 1, 2020. VA explained that county loan limits were eliminated for veterans and service members with full entitlement, making it possible to buy with no down payment regardless of the home's cost (VA News; VA Circular 26-19-30). The same law exempted active-duty Purple Heart recipients from the funding fee.

    Remaining (Partial) Entitlement: Where County Limits Apply

    If you still have a VA loan, or you used your benefit in the past and it hasn't been restored, you're working with remaining entitlement. In that case, VA ties your bonus entitlement to the conforming loan limit in the county where the new home is located.

    How to Calculate Remaining Entitlement

    VA lays out these steps:

    1

    Find the entitlement you've used. On your COE, look at "Prior Loans charged to entitlement," in the Entitlement Charged column.

    2

    Look up the county loan limit. VA uses the FHFA conforming loan limit, and you use the One-Unit Limit even if the property has more than one unit.

    3

    Multiply that limit by 25%.

    4

    Subtract the entitlement you've already used. The result is your remaining bonus entitlement.

    5

    Multiply the remaining bonus entitlement by 4. That's the most many lenders would lend without a down payment.

    2026 County Loan Limits in Central Texas

    For 2026, FHFA set the baseline one-unit conforming loan limit at $832,750 (FHFA). In FHFA's 2026 county table, every Texas county is at that baseline, including:

    CountyCommunities2026 One-Unit Limit
    BellKilleen, Temple, Belton, Harker Heights, Salado$832,750
    CoryellCopperas Cove, Gatesville$832,750
    McLennanWaco$832,750
    WilliamsonGeorgetown, Round Rock, Cedar Park, Leander$832,750
    TravisAustin$832,750

    Limits are set each calendar year, so confirm the figure for the year you close.

    A Worked Example (Hypothetical)

    Let's say a soldier at Fort Hood still owns a home financed with a VA loan, and their COE shows $50,000 of entitlement charged. They want to buy in Bell County in 2026.

    $832,750 × 25% = $208,187.50

    $208,187.50 − $50,000 = $158,187.50 remaining bonus entitlement

    $158,187.50 × 4 = $632,750, the most many lenders would lend with no down payment

    If they wanted a $700,000 loan, 25% of that loan is $175,000. Most lenders want entitlement, down payment, or both to cover at least 25% of the loan, so the $16,812.50 gap would generally need to come from a down payment. Your lender's requirements may vary.

    Hypothetical example for illustration only; it follows VA's published calculation method and is not a quote or approval.

    Two VA Loans at Once

    It's possible. VA notes that if you keep your VA-financed home and buy another with a VA loan, you must be able to afford both loans, the new home must be your primary residence, and what VA can back depends on your remaining entitlement and the county limit. This comes up often with PCS moves, when families keep a home as a rental.

    If the numbers you need run past what your remaining entitlement covers, it can make sense to compare a down payment on a VA loan with a conventional loan, or for larger loan amounts, jumbo financing.

    Restoring Your Entitlement

    VA says you may be able to restore entitlement you used before if at least one of these is true (VA eligibility):

    • You sold the home bought with the prior loan and paid that loan in full, or
    • A qualified veteran buyer assumes your loan and substitutes their entitlement for the same amount you used, or
    • You repaid the prior loan in full but still own the home. You can only do this once.

    Request restoration online, through your lender, or with VA Form 26-1880. If you can't restore it, you may still have remaining entitlement.

    VA Funding Fee Basics

    Most VA borrowers pay a one-time funding fee, calculated as a percentage of the loan amount. You can finance it into the loan or pay it at closing. On a purchase loan, the funding fee is the only cost VA allows you to finance; other closing costs are paid at closing (VA funding fee).

    Purchase Funding Fee Rates (Chart Effective April 7, 2023)

    Down PaymentFirst UseAfter First Use
    Less than 5%2.15%3.3%
    5% or more1.5%1.5%
    10% or more1.25%1.25%

    These rates apply to veterans, active-duty service members, and Guard and Reserve members. VA lists 0.5% for assumptions and IRRRLs.

    Who Doesn't Pay the Funding Fee

    VA lists several exemptions, including veterans receiving VA compensation for a service-connected disability (or eligible for it but receiving retirement or active-duty pay instead), surviving spouses receiving Dependency and Indemnity Compensation, service members with a qualifying proposed or memorandum rating before closing, and active-duty Purple Heart recipients who provide evidence on or before closing.

    Seller Concessions

    VA doesn't limit seller credits toward closing costs, but it limits seller concessions to 4% of the home's reasonable value. Concessions can include paying your funding fee.

    Texas Extra: Veterans Land Board Home Loans

    Texas veterans may also look at the Veterans Land Board's Veterans Housing Assistance Program, which can be paired with VA financing through a VLB participating lender (Texas GLO). Exploring assistance too? See my down payment assistance in Texas guide.

    Let's check your entitlement before you shop.

    Buying near the post? See my Killeen home loans page.

    Frequently Asked Questions

    Questions about VA loan limits in Texas.

    Sources

    Taylor Ring, NMLS# 2809683. Fairway Independent Mortgage Corporation, NMLS# 2289. Equal Housing Opportunity. This is not a commitment to lend; all loans subject to credit approval and program guidelines. The Wood Group of Fairway, 127 Lake Rd Ste 300, Belton, TX 76513. Not affiliated with or endorsed by the U.S. Department of Veterans Affairs or any government agency. TX customer service complaints may be directed to (877) 699-0353 or customerservice@fairwaymc.com.