If you’re a Veteran or active-duty service member considering a VA home loan, it’s essential to understand VA loan entitlement and how it affects your eligibility, borrowing power, and potential down payment. This VA entitlement guide breaks down what it is, how it works, and how to use it when purchasing a home in 2025.

What Is VA Loan Entitlement?

VA entitlement is the dollar amount the Department of Veterans Affairs guarantees on your behalf. This guarantee gives lenders confidence in approving loans with no down payment and favorable terms. VA entitlement consists of two parts:

Type of Entitlement	Amount	Purpose
Basic Entitlement	$36,000 or 25% of loans up to $144,000	Covers smaller home purchases or part of larger loans
Bonus (Second-Tier) Entitlement	Varies based on county loan limits	Supports higher-priced homes, especially in high-cost areas

Together, these benefits often allow qualified buyers to purchase homes above the conforming loan limits without putting any money down.

Full vs. Partial VA Entitlement

You have full entitlement if:

• You’ve never used a VA loan.
• You repaid a previous VA loan and sold the home.
• Another Veteran assumed your loan and substituted their entitlement.

Partial entitlement applies if you still have an active VA loan or defaulted on one previously. Even so, you can still qualify for another VA loan using your remaining bonus entitlement. Understanding which applies to you helps set expectations when shopping for a home.

How VA Entitlement Impacts Loan Amounts and Down Payments

With full entitlement, you can finance a home up to the conforming loan limit — $766,550 in most U.S. counties for 2025 — without needing a down payment.

Let’s look at an example:

• Home Price: $660,000
• VA Guarantee: 25% or $165,000
• Basic Entitlement: $36,000
• Bonus Entitlement: $129,000

If you have partial entitlement, the guarantee may not cover 25% of your new loan. In that case, a down payment might be required to cover the difference.

Can You Have Two VA Loans at the Same Time?

Yes, it’s possible. With second-tier entitlement, eligible Veterans can take out another VA loan while still holding the first. This is common for service members who relocate but keep their current home as a rental property.

However, the second loan may come with stricter credit and income requirements. A VA-approved lender can calculate your remaining entitlement and show how much you can borrow.

VA Loan Entitlement Limits and Loan Maximums

If you have full entitlement, there’s no VA-imposed loan limit. You can borrow as much as your lender allows, and still avoid a down payment. Limits only apply when you have partial entitlement, in which case the VA calculates your remaining guarantee and compares it to the local conforming limit to determine if a down payment is necessary.

How to Restore VA Entitlement

You can restore your VA entitlement by:

• Selling the home and paying off the VA loan in full.
• Refinancing into a non-VA loan.
• Having your loan assumed by another eligible Veteran (with a substitution of entitlement).

Restoring your entitlement allows you to reuse your VA loan benefits without restrictions — including 0% down financing.

Why Understanding VA Entitlement Matters

Knowing your VA loan entitlement gives you a strategic edge. It helps you avoid unnecessary down payments, borrow more confidently, and fully utilize your VA benefit, even more than once. If you’re unsure about your entitlement status, a loan expert can help review your Certificate of Eligibility (COE) and determine your loan options.

Ready to Use Your VA Entitlement?

Understanding how VA loan entitlement works is the first step to a smart home purchase. Whether you’re a first-time buyer or using your VA benefits again, you have powerful tools available to buy with confidence. Connect with our team today to explore your VA loan options.

 

Get My Custom Rate Quote

No SSN required. Zero impact to credit. Your Information is never sold.