VA loan entitlement is the portion of a loan VA guarantees to the lender for you. Most Veterans start with full entitlement, which means no VA loan limit and no down payment required by VA. If some entitlement is tied up in a current VA loan, you may still have remaining entitlement for a second VA loan, and entitlement can generally be restored after you sell and pay off the prior loan.
What entitlement is
When a lender makes a VA loan, VA guarantees part of it. That guarantee is your entitlement. Lenders are comfortable offering 100% financing because if a loan goes bad, VA covers part of the loss up to your entitlement.
Entitlement isn't cash, and it doesn't reduce your loan balance. It's a measure of how much guaranty VA will provide. When you use a VA loan, part of your entitlement is "charged" to that loan until it's paid off and restored.
Your Certificate of Eligibility shows your entitlement and whether any is charged to a prior loan.
Basic vs. bonus entitlement
Basic entitlement
The first tier of your guaranty — historically $36,000. It covers smaller loans on its own, and it's the figure you'll often see printed on a COE.
Bonus (second-tier) entitlement
Additional guaranty tied to county loan limits. It's what allows larger loans with no down payment. You don't apply for it separately — it's part of your total benefit.
Together, basic and bonus entitlement make up your total benefit. For borrowers with full entitlement, VA removed loan limits starting in 2020, so the total is effectively open-ended — see VA loan limits.
Want a straight answer for your situation? Skip the call center — Matthew will review your eligibility, entitlement, and options himself.
Talk with MatthewFull vs. remaining entitlement
Full entitlement generally means one of these is true:
- You've never used your VA home loan benefit, or
- You used it, paid the loan in full, and sold the property (entitlement restored), or
- You used it and someone assumed your loan with substitution of entitlement, or
- You had a foreclosure or compromise claim and repaid VA in full.
Remaining (partial) entitlement means some of your entitlement is still charged to a VA loan you haven't paid off — for example, you kept your first home as a rental after a PCS move. You can still use the remaining amount, but county loan limits come back into play when figuring how much you can borrow with no down payment.
Restoring entitlement
Entitlement doesn't restore itself automatically in VA's records. The usual paths:
- Sell and pay off. Once the home is sold and the VA loan paid in full, you can request restoration. A settlement statement or payoff letter is typically used as proof.
- Refinance with a non-VA loan and sell later. Refinancing alone doesn't restore entitlement unless the property is also disposed of — except under one-time restoration.
- Assumption with substitution. If an eligible Veteran assumes your loan and substitutes their entitlement, yours can be restored.
Matthew can request restoration as part of your COE request when the paperwork supports it.
One-time restoration
VA allows a one-time restoration when you've paid off a VA loan but still own the property. For example, you refinanced a VA loan into a conventional loan (or paid it off in cash) and kept the house. You can request restoration once in that situation.
Once used, one-time restoration generally can't be repeated until you dispose of every property previously bought with a VA loan. It's worth planning when to use it — Matthew can walk through the timing.
A second VA loan: an example
Here's a common scenario. A service member bought a home with a VA loan at their first duty station. On PCS orders, they want to keep that home as a rental and buy again at the new base.
- The first loan still has entitlement charged to it, so the service member has remaining entitlement, not full entitlement.
- The lender uses the county loan limit where the new home is located, minus the entitlement already in use, to figure how much VA will guarantee on the second loan.
- If the new home's price is within what remaining entitlement covers, it may still be a no-down-payment purchase. If it's above that, a down payment may be required for the difference — generally much smaller than a conventional loan would need.
- The new home must be the primary residence, and the service member must qualify for both housing expenses (rental income from the first home may help, subject to lender rules).
Every file is different, so Matthew runs the numbers from your COE and the county limit. See PCS moves for more on keeping a home when you relocate.
Assumptions and substitution of entitlement
VA loans are generally assumable by a qualified buyer, with lender and VA approval. What happens to your entitlement depends on who assumes:
- Eligible Veteran with substitution. The buyer substitutes their entitlement for yours, and your entitlement can be restored.
- Non-Veteran or no substitution. Your entitlement stays tied to the loan until it's paid off, even though you no longer own the home.
Assumptions can be attractive to buyers, but sellers should understand the entitlement trade-off first. VA rules change — Matthew will confirm the current guidelines for your file.
Frequently asked questions
How do I know if I have full entitlement?
Your COE shows it. If you've never used the benefit, or any prior VA loan was paid off and the home sold, you likely have full entitlement.
Can I have two VA loans at once?
Yes, it's possible with remaining entitlement, as long as you occupy the new home as your primary residence and qualify for both.
Does refinancing out of a VA loan restore my entitlement?
Not on its own if you still own the home — unless you request one-time restoration.
What happens to my entitlement if my VA loan is assumed?
If an eligible Veteran substitutes their entitlement, yours can be restored. Otherwise it stays tied to the loan until payoff.
Does a foreclosure affect my entitlement?
Generally yes — any VA loss can reduce entitlement until repaid. Matthew can review what your COE shows.
Ask Matthew about your VA home loan
Tell Matthew a little about the property and your plans. He'll follow up by phone or email — no obligation.
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