Maryland VA Loan Requirements 2026
VA loan eligibility, entitlement, funding fees, and county loan limits for Maryland veterans and active duty military — including Fort Meade, Aberdeen Proving Ground, Naval Air Station Patuxent River, and the U.S. Naval Academy.
VA Loan Eligibility Requirements
VA loans are available to eligible veterans, active duty service members, members of the National Guard and Reserves, and surviving spouses. Eligibility is established through a Certificate of Eligibility (COE), which lenders can typically obtain on your behalf through the VA’s automated system.
| Service Category | Minimum Service Requirement |
|---|---|
| Active duty (wartime) | 90 continuous days |
| Active duty (peacetime) | 181 continuous days |
| National Guard / Reserves | 6 years of service, OR 90 days active duty under Title 10 orders |
| Surviving spouse | Spouse died in service or from service-connected disability; not remarried |
Maryland’s military and civilian-defense workforce is unusually large. Between Fort Meade (including NSA and U.S. Cyber Command), Aberdeen Proving Ground, Naval Air Station Patuxent River, the U.S. Naval Academy in Annapolis, and Joint Base Andrews just across the DC line, Maryland has one of the highest concentrations of VA-eligible buyers of any state. Active duty personnel at these installations qualify immediately upon meeting the active duty service requirements above.
Full vs. Partial Entitlement
Understanding entitlement is the most important and most misunderstood aspect of the VA loan program. Your entitlement determines whether county loan limits apply to your purchase.
Full Entitlement — No Loan Limit
If you have never used a VA loan, or you have used one and fully paid it off and had your entitlement restored, you have full entitlement. With full entitlement in 2026, there is no VA-imposed loan limit. You can borrow as much as a lender is willing to approve — with zero down payment — regardless of the county you’re buying in, including Montgomery or Prince George’s County where home prices run well above the national conforming limit.
Partial Entitlement — County Limits Apply
If you currently have an active VA loan, or previously defaulted on a VA loan, you have partial entitlement. In this case, county loan limits determine your zero-down borrowing ceiling. You can still purchase above the limit but must make a down payment equal to 25% of the difference between the purchase price and the county limit.
The most common mistake: Veterans who paid off a prior VA loan assume they’ve “reset” to first-use status. Your entitlement may be available again, but you’re still classified as a subsequent user for funding fee purposes. Always confirm your COE status with a VA-approved lender before assuming your entitlement situation.
Maryland VA Loan Limits by County (2026)
VA loan limits mirror the FHFA conforming loan limits and only apply to borrowers with partial entitlement. Borrowers with full entitlement are not subject to these limits.
| County | 2026 VA / Conforming Limit | Notes |
|---|---|---|
| Montgomery County | $1,249,125 | High-cost — DC metro |
| Prince George’s County | $1,249,125 | High-cost — DC metro |
| Frederick County | $1,249,125 | High-cost — DC metro |
| Charles County | $1,249,125 | High-cost — DC metro |
| Anne Arundel County (Naval Academy) | $832,750 | Standard conforming — large VA loan market |
| Baltimore County / Baltimore City | $832,750 | Standard conforming |
| Howard County | $832,750 | Standard conforming |
| Harford County (Aberdeen Proving Ground) | $832,750 | Standard conforming — large VA loan market |
| Calvert / St. Mary’s counties (NAS Patuxent River) | $832,750 | Standard conforming — large VA loan market |
| All other Maryland counties | $832,750 | Standard conforming |
Remember: These limits only matter if you have partial entitlement. The majority of first-time VA loan users in Maryland have full entitlement and face no county-based limit whatsoever — a significant advantage in Montgomery and Prince George’s counties, where even the high-cost conforming ceiling can fall short of some purchase prices.
2026 VA Funding Fee Chart
The VA funding fee is a one-time fee paid to the VA in place of monthly mortgage insurance. It can be financed into the loan amount. Rates below are confirmed current as of 2026 and are locked in through November 2031 per federal statute.
Purchase Loans
| Down Payment | First Use | Subsequent Use |
|---|---|---|
| Less than 5% | 2.15% | 3.30% |
| 5% – 9.99% | 1.50% | 1.50% |
| 10% or more | 1.25% | 1.25% |
Refinance Loans
| Loan Type | First Use | Subsequent Use |
|---|---|---|
| IRRRL (Streamline Refinance) | 0.50% | 0.50% |
| Cash-Out Refinance | 2.15% | 3.30% |
Who Is Exempt from the Funding Fee
- Veterans receiving VA disability compensation (any rating)
- Veterans with a proposed or memorandum disability rating prior to closing
- Surviving spouses receiving Dependency and Indemnity Compensation (DIC)
- Purple Heart recipients on active duty
Check your exemption before closing. Approximately 6 million veterans receive VA disability compensation and are fully exempt from the funding fee. On a $500,000 loan (closer to a typical Montgomery County purchase), that’s over a $10,000 savings at the 2.15% first-use rate. If you have a pending disability claim, you may be able to get a refund after closing if your rating is approved retroactively. Starting tax year 2026, the VA funding fee is also tax-deductible for eligible borrowers who itemize — consult a tax professional for your situation.
VA Loan Benefits vs. Other Programs
| Feature | VA Loan | FHA Loan | Conventional |
|---|---|---|---|
| Down payment | 0% (full entitlement) | 3.5% | 3–20% |
| Monthly mortgage insurance | None — ever | Life of loan (if <10% down) | Cancels at 20% equity |
| One-time fee | 2.15% funding fee (first use) | 1.75% UFMIP | None |
| Minimum credit score | 580–620 (lender overlay) | 580 | 620 |
| Loan limit (full entitlement) | No limit | County-based cap | $832,750–$1,249,125 conforming |
| Eligibility requirement | Military service required | Anyone | Anyone |
For eligible veterans, the VA loan is almost always the strongest available program. The elimination of monthly PMI alone can save $250–$450/month on a typical Maryland home purchase — far exceeding the one-time funding fee cost over any reasonable hold period, and even more meaningful in higher-priced DC-metro counties.
VA Loans in the Maryland Market
Maryland has one of the largest concentrations of military, intelligence-community, and defense-contractor employment of any state, which makes the VA loan program a major part of the local mortgage market. Fort Meade (home to the National Security Agency and U.S. Cyber Command) in Anne Arundel County, Aberdeen Proving Ground in Harford County, Naval Air Station Patuxent River in St. Mary’s County, and the U.S. Naval Academy in Annapolis together support tens of thousands of active duty, Guard, Reserve, and civilian personnel across the state.
VA Loans and Seller Perception in Maryland
In competitive Maryland markets — particularly the DC-metro suburbs and Annapolis — some buyers worry that VA loan offers will be viewed less favorably than conventional offers. This concern is largely outdated. VA loans close reliably, VA appraisals are not significantly more restrictive than conventional appraisals, and sellers are generally well-served by accepting VA offers. A strong pre-approval letter from a VA-experienced lender eliminates most seller hesitation.
VA Loan Use With MMP Programs
Maryland Mortgage Program products support VA loans as the underlying first mortgage. Veterans can combine a VA loan with MMP’s below-market rate and even layer MMP down payment assistance on top of a VA first mortgage — a strong combination for veterans buying in Maryland’s higher-cost markets.
