What Is the VA Loan Limit in Indiana for 2025?

Veterans, active-duty service members, and eligible surviving spouses in Indiana have access to a powerful home financing tool: the VA loan. This program offers significant benefits, including no down payment requirements and competitive interest rates. However, understanding the VA loan limits is crucial, especially for those with partial entitlement.

Understanding VA Loan Limits

As of 2020, the VA eliminated loan limits for borrowers with full entitlement. This means that eligible individuals can borrow any amount the lender is willing to offer without a down payment, provided they meet the lender’s credit and income requirements. Source: VA.gov

However, if you have partial entitlement—perhaps due to an active VA loan or a previous default—loan limits come into play. These limits determine the maximum amount you can borrow without a down payment.

Indiana’s VA Loan Limit for 2025

In 2025, the standard VA loan limit for all counties in Indiana is $806,500. This figure aligns with the Federal Housing Finance Agency’s conforming loan limits and represents the maximum amount a borrower with partial entitlement can finance without a down payment. Source: VAloans.com

How Loan Limits Affect You

• Full Entitlement: If you have full entitlement, you can borrow above the standard limit without a down payment, subject to lender approval.
• Partial Entitlement: If you have partial entitlement, the $806,500 limit applies. For example, if you’ve already used $100,000 of your entitlement, your remaining entitlement would be $101,625 (25% of $806,500 is $201,625; $201,625 – $100,000 = $101,625). This means you could borrow up to $406,500 without a down payment ($101,625 x 4). Any amount above this would require a down payment equal to 25% of the difference between the loan amount and $406,500.

Key Takeaways

• No Loan Limits for Full Entitlement: Borrowers with full entitlement face no VA-imposed loan limits.
• $806,500 Limit for Partial Entitlement: Borrowers with partial entitlement in Indiana have a loan limit of $806,500.
• Down Payments May Be Required: If you’re borrowing above your entitlement limit, a down payment will be necessary.

Final Thoughts

The VA loan program offers unparalleled benefits for those who have served our country. Understanding how loan limits work, especially in Indiana, ensures you make informed decisions on your path to homeownership. Always consult with a knowledgeable mortgage lender to navigate the specifics of your entitlement and loan options.