source:
  type: guide
  id: va-m26-7-ch03-t03
  authority: VA Lenders Handbook (VA Pamphlet 26-7), Chapter 3, Topic 3 — Maximum
    Loan
  description: VA Lenders Handbook (VA Pamphlet 26-7), Chapter 3, Topic 3 — Maximum
    Loan.
  coverage_tier: operative
obligations:
- id: va-m26-7-ch03-t03-full
  canonical_id: va-m26-7-ch03-t03-full
  section: VA Lenders Handbook (VA Pamphlet 26-7), Chapter 3, Topic 3 — Maximum Loan
  type: do
  tags:
  - regulator-direct
  - va
  - va-handbook
  - corpus-expansion
  - tier-operative
  primary_source:
    tier: 1
    authority: VA Lenders Handbook (VA Pamphlet 26-7), Chapter 3, Topic 3 — Maximum
      Loan
    source_class: va-handbook
    source_url: https://www.benefits.va.gov/warms/pam26_7.asp
    snapshot_id: 73e5d344e2743889
    fetched_at: '2026-05-23T01:53:52Z'
    content_hash: sha256:b452379ce6dbdb528896ce1d9ac9ca8a9cf03b5fab6fa9af7766dc2dc17c2bbe
    paragraph_quote: '3. Maximum Loan Change Date November 8, 2012, Change 21 • This
      section has been updated to correct a hyperlink. • This section has been updated
      to make minor grammatical edits. a. Does VA have Maximum Loan Amounts? Unlike
      other home loan programs, there are no maximum dollar amounts prescribed for
      VA-guaranteed loans. Limitations on VA loan size are primarily attributable
      to two factors: 1. Lenders who sell their VA loans in the secondary market must
      limit the size of those loans to the maximums prescribed by Government National
      Mortgage Association (GNMA) or whatever conduit they use to sell the loans.
      2. VA limits the amount of the loan to the reasonable value of the property
      shown on the NOV plus the cost of energy efficiency improvements up to $6,000
      plus the VA funding fee, with the following exceptions. Exception Maximum Loan
      IRRRLs • Existing VA loan balance, plus • The cost of any energy efficiency
      improvements up to $6,000, plus • Allowable fees and charges, plus • Up to two
      discount points, plus • VA funding fee. (Lenders must use VA Form 26-8923, IRRRL
      Worksheet, for the actual calculation.) Continued on next page VA Pamphlet 26-7,
      Revised Chapter 3: The VA Loan and Guaranty 3-8 3. Maximum Loan, Continued a.
      Does VA have Maximum Loan Amounts? (continued) Exception Maximum Loan Regular
      refinancing loan (cash-out) • 100 percent of the VA reasonable value, plus •
      the cost of any energy efficiency improvements up to $6,000, plus • VA funding
      fee. Loans to refinance are: • a construction loan, • an installment land sales
      contract, or • a loan assumed by the veteran at an interest rate higher than
      that for the proposed refinancing loan. The lesser of: • the VA reasonable value,
      or • the sum of the outstanding balance of the loan plus allowable closing costs
      and discounts, plus • For construction loans, “balance of the loan” includes
      the balances of construction financing and lot liens, if any. • the cost of
      any energy efficiency improvements up to $6,000, plus • VA funding fee. Graduated
      Payment Mortgage (GPM) loan on existing property • The VA reasonable value,
      minus • the highest amount of negative amortization, plus • the cost of any
      energy efficiency improvements up to $6,000, plus • VA funding fee. Reference:
      See section 7 of chapter 7. GPM loan on new home 97.5 percent lesser of: • the
      VA reasonable value or • the purchase price, plus • the cost of any energy efficiency
      improvements up to $6,000, plus • VA funding fee. Reference: See section 7 of
      chapter 7. Continued on next page VA Pamphlet 26-7, Revised Chapter 3: The VA
      Loan and Guaranty 3-9 3. Maximum Loan, Continued b. Downpayment Because VA loans
      can be for the full reasonable value of the property, no downpayment is required
      by VA except in the following circumstances: • If the purchase price exceeds
      the reasonable value of the property, a downpayment in the amount of the difference
      must be made in cash from the borrower’s own resources, and • VA requires a
      downpayment on all GPMs. If a veteran has less than full entitlement available,
      a lender may require a downpayment in order to make the veteran a loan that
      meets GNMA or other secondary market requirements. The “rule of thumb” for GNMA
      is that the VA guaranty, or a combination of VA guaranty plus downpayment and/or
      equity, must cover at least 25 percent of the loan. VA Pamphlet 26-7, Revised
      Chapter 3: The VA Loan and Guaranty 3-10'
  judgment: false
