LOCAL REPRODUCTION AUTHORIZED
Veterans Benefits Administration Circular 26-23-26
Department of Veterans Affairs December 1, 2023
Washington, D.C. 20420
Federal Housing Finance Agency (FHFA) Announces 2024 Conforming Loan Limits
1. Purpose. On November 28, 2023, the Federal Housing Finance Agency (FHFA) announced
the maximum conforming loan limits (CLL), also known as Freddie Mac CLL, for 2024. In
VA’s program the CLL can impact the entitlement calculation for some Veterans. The new
FHFA loan limits are found at: https://www.fhfa.gov/DataTools/Downloads/Pages/Conforming-
Loan-Limit.aspx.
2. Freddie Mac Conforming Loan Limit Impact on Borrowers with Partial Entitlement. If an
eligible Veteran with partial entitlement seeks a loan of more than $144,000, the CLL is part of
the formula to calculate remaining entitlement1. In such cases, the amount of remaining
entitlement is calculated by taking 25% of the CLL and subtracting the previously used
entitlement that was not restored2. VA-guaranteed loans are often securitized in pools that
require the loan to have a 25% guaranty. For Veterans without full entitlement who do not make
a down payment, lenders often limit the total loan amount to four times the amount of the
remaining entitlement or, put another way, four times the amount of VA’s guaranty. Down
payments required on VA loans are typically far less than down payments required on other loan
products. As a reminder, the guaranty percentage on the loan guaranty certificate only reflects
VA’s guaranty on the loan and may not represent total coverage for secondary market purposes.
3. Single and Multi-Unit Properties. Lenders should note that while a Veteran may use a VA-
guaranteed loan to purchase a multi-unit property, the entitlement statute requires the use of the
CLL applicable to a single-family residence, (i.e., single unit property) 3.
4. Interest Rate Reduction Refinancing Loans (IRRRLs). The Freddie Mac CLL does NOT
apply to IRRRLs. For IRRRLs greater than $144,000, VA will guarantee 25 percent of the loan
amount, regardless of the Veteran’s entitlement4.
5. Effective Date: The CLL increases are effective for loans closed on or after January 1, 2024.
6. Rescission: This Circular is rescinded January 1, 2025.
By Direction of the Under Secretary for Benefits
John E. Bell, III
Executive Director
Loan Guaranty Service
Distribution: CO: RPC 2021 SS (26A1) FLD: VBAFS, 1 each (Reproduce and distribute
based on RPC 2021)
1 38 U.S.C. 3703 (a)(1)(c)(iii)(I)
2 38 U.S.C. 3703 (a)(1)(c)(ii)
3 38 U.S.C. 3703 (a)(1)(c)(iii)(II)
4 38 U.S.C. 3710 (e)(2)