A VA home loan is a mortgage product available to certain military veterans, active-duty service members, and surviving spouses. To purchase a home in Georgia with a VA loan, you must meet the individual lender's requirements and military service.
Before you enter the market for a new mortgage, you should understand what VA loan limits are and how they affect your home-buying journey. Several things, such as whether you have a previous VA loan or active VA loan can impact your loan limits.
Whether you have full VA entitlement and the amount of your entitlement also play a role. Here are some considerations for the VA home loan program regarding loan limits.
What Are VA Loan Limits?
VA loan limits cap how much veterans, active service members, surviving spouses, and other eligible borrowers can borrow without making down payments on houses. Generally, qualified buyers can use these loans and take advantage of the primary benefit of no down payment, saving on upfront costs.
While you can borrow any loan amount with a VA-backed loan, the loan limits govern how much you can borrow while still being eligible for a zero-down payment. Loan limits can vary from state to state, so it is essential to understand the loan limit in your market before applying for a VA mortgage.
Loan limits are set yearly, so the one for your previous VA loan may not be the same as for a current loan. However, your history when you paid off your previous VA loan can impact your loan amount.
How VA Loan Limits Are Determined?
VA home loan limits depend on the conforming loan limits set by Fannie Mae and Freddie Mac, two real estate entities overseen by the Federal Housing Finance Agency. Each year, these limits are set based on the state of the real estate industry nationwide. The conforming loan limit will also vary from state to state and county to county.
In general, most counties in the US have the same county loan limit for conforming loans and VA mortgages. Higher-cost markets often have increased limits to accommodate the higher prices of homes in those areas.
Your home may cost more than the loan limit, but you can pay the difference. Take the county loan limit minus the purchase price to determine how much you’ll owe. Whether you have full VA loan entitlement can also impact your limit. It’s crucial to work with an experienced lender to understand how VA loans work.
VA Loan Limits in Georgia
VA loan limits apply to all purchases in Georgia with a VA mortgage. Although specific regions in the state have varying market conditions, all counties adhere to the same loan limit of $806,500 in 2025.
No matter where you plan to buy your dream home in the Peach State, the maximum limit for purchasing a house without a down payment is $806,500. Remember that you can bring down your VA funding fee when you make a down payment.
Atlanta VA Loan Limits
In many states, higher-cost areas, such as significant metropolitans, have higher VA home loan limits. This is not true in Georgia, as each county follows the same restrictions. Understanding this limit is essential because Atlanta homes are generally more expensive. As a result, you may only find homes that are beyond this limit in certain counties.
Savannah and Augusta VA Loan Limits
Homes are much cheaper in Savannah and Augusta than they are in Atlanta. Since the county loan limits are still the same as the rest of the state, most homes will not conflict with the VA limits for borrowing money if you don’t make a down payment. Therefore, searching for a home in these areas will help you avoid issues with the county loan limit.
How VA Loan Limits Affect Georgia Veterans?
The Department of Veterans Affairs created this mortgage product to make it easier for veterans to afford homes. The primary VA home loan benefit is the lack of a down payment requirement. However, loan limits affect how much you can borrow without putting any money down for the loan, so you must compare the price of the home you want to the VA mortgage limits.
What Happens if You Exceed the VA Loan Limit?
Exceeding the loan limit does not mean you cannot purchase that house. For example, you could find a home you love in Atlanta that costs $900,000, which exceeds the statewide limit of $806,500. In that case, you will likely have to put money toward the extra $93,500. How much will be required depends on your mortgage lender, how much remaining entitlement you have, and several other factors.
Jumbo VA Loans as an Option
Jumbo VA loans are an option for borrowers seeking more expensive homes. This loan type will require a larger down payment and a higher credit score than a standard VA mortgage. You will likely pay a higher interest rate, increasing your monthly payment and maximum loan amount. Most lenders can help you decide if this is the right option for your situation.
Eligibility for VA Loans in Georgia
The borrowing limits for these loans are only relevant if you are eligible for the program. Those applying for VA mortgages must meet the military service requirements, credit score minimums, and residency qualifications to have their loans approved.
Service Requirements for Georgia Veterans
Not all who have served in the military are automatically eligible for VA home loans. Private lenders require proof of military service, so you must meet one of the following conditions:
- Served at least 90 continuous days of non-training active duty during wartime.
- Served at least 181 continuous days of active duty during peacetime.
- Served at least six years in the National Guard or Reserves.
- The surviving spouse of a military veteran who died in the line of duty or because of a service-connected disability.
Credit Score and Financial Requirements
Most lenders will need to assess your risk as a borrower before granting you the funds to purchase a Georgia home. While the VA does not set minimum credit score requirements for these loans, the average lender will require a 620 or higher. Some lenders offer different credit score requirements, accepting scores as low as 500 if your other finances are in order.
Your lender may also assess risk using your debt-to-income ratio (DTI). Many lenders accept a DTI ratio of no higher than 50%. Depending on the lender, you may need a DTI ratio of 43% or lower to qualify.
Benefits of VA Loans for Georgia Veterans
If you qualify for a VA loan, taking advantage of this program is in your best interest. VA borrowers can access numerous benefits that result in lower upfront costs and long-term savings compared to non-VA loan products. The primary benefits are no down payment requirement, no private mortgage insurance, and lower interest rates.
No Down Payment Benefit
A down payment is money you pay upfront to lower the loan cost. The most generous lenders may enforce a 3% minimum down payment for a non-VA loan, but a VA mortgage that falls within the limits does not require a down payment. This is especially helpful when purchasing expensive homes in Atlanta.
No Private Mortgage Insurance (PMI)
A small down payment from the borrower would result in private mortgage insurance premiums for most loans. These would increase your upfront costs or monthly payments. You won’t have to pay for private mortgage insurance even with a zero-down payment.
Competitive Interest Rates
The higher the interest rate on a home loan, the more it will cost you monthly and overall. With Georgia VA loans, you can access more competitive rates to save money now and in the future.
How to Apply for a VA Loan in Georgia?
Applying for a VA mortgage is a simple process with the right lender. Many applications can be completed online, making it easy to start your home search when ready. The critical steps are gathering documentation, confirming eligibility, and partnering with a VA-approved lender.
Preparing Documents for a VA Loan Application
Applying for any type of mortgage requires paperwork, and VA loans are no exception. You must collect documents for proof of service, income verification, VA loan entitlement, and Georgia residency. One of the documents you’ll need from the VA is the Certificate of Eligibility (COE).
Choosing a VA-Approved Lender in Georgia
Next, you must find a qualified lender to give out VA loans. You should choose a lender with plenty of experience helping veterans, active service members, and surviving spouses buy houses in Georgia with these mortgage products. Plus, their knowledge of local markets will be incredibly valuable.
Common Mistakes to Avoid When Applying for VA Loans
Mistakes are common when people enter the market for new homes, and VA home loans' extra layers of complexity are tricky to navigate. First, research the loan limit in your market and the amount of your entitlement to understand your borrowing parameters.
Remember to include the VA funding fee in your budget for closing costs, as it can cost 1.25% to 3.3% of the home’s sale price. You may even be exempt from this payment. Finally, only work with an experienced VA-approved lender to ensure you receive quality customer service.
Why VA Loans Are the Best Option for Georgia Veterans?
VA home loans are the best option for veterans because of their benefits, including no down payment, no mortgage insurance, and lower interest rates. Together, these financial incentives make homeownership far more affordable in Georgia.
TrueWay Mortgage is an experienced lender that has helped many military service members navigate the complex waters of VA mortgages in the Peach State. Call us today at 404-962-0032 to discuss your goals for a new home with VA financing.
