Here’s the question Kentucky veterans ask every January: “What’s the VA loan limit this year?” The honest answer is that for most veterans, there isn’t one — and for the rest, the number that matters in 2026 is $832,750. Which camp you’re in depends entirely on your entitlement.

Full entitlement: no loan limit at all

Since the Blue Water Navy Act took effect in 2020, veterans with full entitlement — meaning you’ve never used a VA loan, or you’ve paid off a prior VA loan and sold the home — have no VA loan limit. The VA guarantees 25% of whatever loan amount your income, credit, and residual income support, with $0 down. A $900,000 loan with nothing down is possible on paper; the constraint is your qualification, not a government cap.

Partial entitlement: where $832,750 comes in

If you currently have an active VA loan, or you lost entitlement through a foreclosure or short sale that wasn’t repaid, the county loan limit re-enters the picture. For every Kentucky county, that’s the 2026 conforming limit of $832,750 (Kentucky has no high-cost counties). The math works like this:

  1. Maximum guaranty = 25% of $832,750 = $208,187
  2. Subtract the entitlement you’re already using — say $100,000 — leaving $108,187
  3. Multiply the remainder by 4: roughly $432,750 is your maximum with zero down

Want to borrow above that with partial entitlement? You put down 25% of the amount over the cap, not 25% of the price — usually a much smaller check than people fear. Because the conforming limit rose $26,250 for 2026, every partial-entitlement veteran in Kentucky picked up about $6,500 of additional guaranty room this year without doing anything.

Funding fee is unchanged for 2026

The VA funding fee schedule carries over: 2.15% for first use with less than 5% down, 3.3% for subsequent use, stepping down to 1.5% with 5% down and 1.25% with 10% down. Veterans receiving service-connected disability compensation, and Purple Heart recipients, remain exempt.

Not sure how much entitlement you have left? Your Certificate of Eligibility answers it, and I can pull it for you in minutes. Call or text Joel Lobb at 502-905-3708 or email kentuckyloan@gmail.com.

Joel Lobb · Mortgage Loan Officer · EVO Mortgage · 911 Barret Ave, Louisville, KY 40204 · NMLS #57916 · Company NMLS #1738461 · Equal Housing Lender

Kentucky Mortgage Loans Only. Not endorsed by FHA, VA, USDA, KHC, or any government agency. Not affiliated with the Department of Veterans Affairs. This is not a commitment to lend. All loans subject to credit approval, income verification, and property appraisal. Rates and terms subject to change without notice.

Leave a comment