Do VA Loan Limits Apply in Des Moines in 2025 — Entitlement Explained
If you’re a veteran or active duty service member looking at buying a home in or around Des Moines with a VA loan, you may wonder: “Is there a maximum purchase price I’m limited to—or does ‘no loan limit with full entitlement’ truly mean no cap?” The short answer is: it depends on whether you have full entitlement or partial entitlement. Here’s how it works — especially in 2025.
What Is VA Loan Entitlement?
“Entitlement” refers to how much of your VA home loan benefit is still available. It affects how much of the loan the VA will guarantee if you default, which in turn impacts whether you can buy a home with 0% down and without the old county-based VA loan limits.
Full entitlement means your full VA benefit is available. This typically happens if you’ve never used a VA home loan, or if you’ve used one but paid it off and sold the home.
Restoration of entitlement allows a Veteran who previously used their VA home loan benefit to regain their full entitlement and take out a new VA loan when selling one property and buying another.
Partial entitlement means some of your entitlement is already used — perhaps you have an active VA loan, or your previous loan is “charged” (used) and is still in your name.
What Changed in 2025 for VA Loan Limits
Here are some key updates for 2025:
The baseline (standard) VA loan limit for most counties increased to $806,500.
In higher-cost areas, VA/high-cost county limits go even higher, though Iowa does not have any of these counties.
Crucially: for borrowers with full entitlement, the VA has effectively removed the old caps. That means if you have full entitlement, the VA guarantee is not tied to conforming / county loan limits in the same way it used to. You can, in many cases, buy a home at any price (subject of course to appraisal, lender approval, your financial qualifications, etc.) without being forced to make a down payment just because of old VA “loan limit” rules.
How Things Work in Des Moines / Iowa
For the Des Moines / Polk County area (as well as most of Iowa):
Iowa follows the standard baseline of $806,500 for 2025 as its VA / FHFA “conforming” limit for all counties.
If you have full entitlement / restoration of entitlement, that limit does not act as a binding cap. You may be able to borrow more, depending on what your lender is willing to approve (which depends on credit, debt-to-income, income, etc.), and what the home appraises for.
If you have partial entitlement, you are more likely to be affected by those county loan limits. In those cases, if the purchase price is above what your VA entitlement effectively supports, you might need to make a down payment to cover the difference.
What Does “No Loan Limit” Really Mean — What to Watch Out For
Even with full entitlement, there are still practical limits. Having “no VA limit” doesn’t mean “no limits at all.” Some things to watch:
Lender Approval / Underwriting
The lender still has to verify that you qualify — your income, debts, credit, and how much home payment you can afford. Just because VA will guarantee doesn’t mean the lender will approve any price. Contact your lender to understand your specific situation.Appraisal Value
VA loans require the home to appraise at or above the purchase price; the lender won’t lend more than the appraised value. If home price exceeds what the appraisal supports, that gap can trigger the Tidewater process.Cost of the Property & Local Housing Market
Even in Des Moines, if you are looking at very large or luxury homes, there may be fewer lenders willing to do very high-loan VA mortgages. It’s important to speak with your lender to ensure they are able to accommodate, assuming you have met all other qualifications.Funding Fee, Down Payment Possibilities under Partial Entitlement
If partial entitlement applies, you may need a down payment to cover the portion above what your remaining entitlement allows. Also, for subsequent use or reduced entitlement, funding fees can differ. VA.gov
Bottom Line
In 2025, if you have full VA entitlement in Des Moines (or anywhere in Iowa), you are not bound by a hard VA loan limit. You can buy as much home as your lender will approve, without being forced to make a down payment simply because of what used to be the VA “loan limit.”
If you have partial entitlement, then yes, VA loan limits (county / conforming limits) do matter. They influence how much you can finance with no money down. If your entitlement has been “used up” or “charged” by an active or prior VA loan, you’ll want a lender who can calculate your remaining entitlement and how much, if any, down payment you’d need for homes above those thresholds.
