VA Update: VA Loan Limit Announced for 2021!

This just in — the 2021 VA loan limit for Hawaii has been announced. Once again as with last year, there will be no loan limit for those service members with full entitlement — if they are pre-approved for the loan and can afford the payments. Full entitlement includes first-time users of their VA loan, borrowers who used their VA loan benefit in the past, but do not have an outstanding VA mortgage; and borrowers with no prior VA loan defaults. Those with full entitlement can still enjoy the zero money down provision of the VA loan.

american flag blowing in the wind

Those with remaining entitlement (i.e., loan balances remaining on other properties) will be based on the standard conforming loan limit set by the Federal Housing Finance Agency (FHFA) annually. Starting January 1st 2021, that limit for all islands in the State of Hawaii will be $822,375 — a 12% increase over last year.

military person holding toy house

Regardless of your financing scenario, the current real estate market in Hawaii is experiencing near-historic interest and activity, driven by low interest rates and the changing needs of individuals and families due to the global pandemic. If you are interested in learning more about your options with a VA loan and exploring options in a particular neighborhood on Oahu, please don’t hesitate to contact me, Cathy Possedi. As a military spouse myself and longtime member of Hawaii Life’s Military Specialized Team, I am well-equipped to help you navigate the process successfully from start to finish.

About Cathy Possedi

Cathy Possedi is a REALTOR, CRS, SRS, MRP, SFR with Hawai’i Life. You can email me at or via phone at (808) 728-5696.

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