Breaking: VA Drops All Loan Limits – Dream Homes Now Within Reach for Veterans

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News Flash

VA Loan Limits Eliminated

The Department of Veterans Affairs just dropped loan limits for 2025.

If you're a veteran with full VA loan entitlement, those pesky county-specific caps that kept you from buying that dream home without a down payment? Gone.

This isn't a small tweak. It's a game-changer.

Here's what changed: Previously, VA borrowers faced county loan limits that capped how much they could borrow without putting money down. Now, eligible veterans can purchase homes at any price point while keeping that sweet zero-down benefit intact.

The winners? Veterans who haven't used their VA loan benefits or have fully restored their entitlement.

Housing prices have been laughing at traditional loan limits for years. This policy shift finally acknowledges that reality and gives veterans the tools to actually compete in today's market.

More You Should Know

• Mortgage Rates Defy Fed Cut: Mortgage rates for 30-year fixed loans surprisingly increased to 6.3% despite the Federal Reserve's quarter-point rate cut, driven by investor concerns over inflation and the prospect of fewer future rate reductions. [Source]

• Home Sales Stall Despite Rates: Existing home sales remained largely flat in August, decreasing only 0.2% despite improving mortgage rate conditions, as persistent mortgage lock-in effects and affordability challenges continue to suppress transaction volumes. [Source]

• Home Affordability Declines Amid Rising Prices: Despite a quarterly dip in mortgage rates, home affordability worsened in nearly half of U.S. counties during Q3 2025 as the national median home price surged to a record $375,000. [Source]

• Construction Job Openings Plummet: The construction industry saw a significant drop to 306,000 job openings by July 2025 and record-low quit rates, exacerbating persistent workforce shortages despite strong project demand in key markets. [Source]

• Construction Costs Inch Up: Construction input prices saw a slight 0.2% increase in September, primarily due to rising energy costs, with nonresidential construction also experiencing similar modest gains. [Source]

• FHA Updates Homeowner Relief: The Federal Housing Administration issued Mortgagee Letter 2025-21 to update permanent loss mitigation options, reflecting industry feedback and current administration goals to support homeownership and safeguard the FHA Mutual Mortgage Insurance Fund. [Source]

• CRE Shows Stabilization Signs: Commercial real estate markets are demonstrating resilience in Q3 2025, with cap rates for office and medical office properties remaining above 7% and apartment transactions showing early stabilization, suggesting transaction volumes are poised to improve as valuations appear to have bottomed out. [Source]

• New Home Sales Jump, Doubted: New home sales unexpectedly surged in August to an annualized rate of 800,000 units, the highest level since early 2022, prompting skepticism from economists who believe the data overstates the housing market's health and may be revised downward. [Source]

• VA Loans Outpace FHA: In 2025, VA loans remain the most cost-effective option for eligible borrowers by not requiring a down payment or monthly mortgage insurance, while FHA loans continue to offer a strong alternative with flexible credit score requirements and a 3.5% down payment for non-VA eligible borrowers. [Source]

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