Short answer: entitlement is the amount VA will guarantee on your home loan, and your Certificate of Eligibility (COE) shows it. With full entitlement, for loans guaranteed on or after January 1, 2020, there is no VA loan limit: VA guarantees 25 percent of a loan above $144,000, and the lender decides how much you can borrow. If you used entitlement on an earlier VA loan that has not been restored, your remaining entitlement is figured from the one-unit conforming loan limit for the area. This page covers federal law only. It is general information, not legal or financial advice.
Basic and bonus entitlement
The statute sets the guaranty by loan size: 50 percent of a loan of $45,000 or less; $22,500 for a loan above $45,000 up to $56,250; the lesser of $36,000 or 40 percent above $56,250; and, for a loan above $144,000 for purposes listed in 3710(a), such as buying or building a home, 25 percent of the loan (38 U.S.C. 3703(a)(1)(A), LII, read October 30, 2026). VA calls the $36,000 on your COE basic or tier 1 entitlement, and the extra amount for a loan above $144,000 bonus or tier 2 entitlement; bonus entitlement is not listed on the COE (VA, last updated August 12, 2025, read October 30, 2026; this page may be out of date).
Full entitlement: no VA loan limit
A 2019 law (Pub. L. 116-23) changed 3703(a)(1) for loans guaranteed on or after January 1, 2020. For a loan above $144,000 to a veteran who has not used entitlement, or whose used entitlement has been fully restored, the maximum entitlement is now 25 percent of the loan, with no cap tied to the conforming loan limit (3703(a)(1)(C)(i)). VA says that if your COE shows basic entitlement of $36,000, you have full entitlement and no loan limit, as long as you can afford the loan and the appraisal supports the price, and that the maximum VA loan on a property is the lower of the appraised value or the price. The lender still decides what you qualify for. This example is only for the math: with full entitlement, VA’s guaranty on a $500,000 loan would be 25 percent, or $125,000.
The regulation has not caught up: the eCFR text of 38 CFR 36.4302(a)(4) still shows a guaranty of the lesser of $60,000 or 25 percent for a home purchase loan above $144,000 (eCFR, text up to date as of October 28, 2026). The statute as amended in 2019 controls for loans guaranteed on or after January 1, 2020.
Remaining entitlement after a prior VA loan
If you used entitlement that has not been restored, your maximum entitlement for a loan above $144,000 is 25 percent of the one-unit conforming loan limit for the year, less the entitlement used and not restored (3703(a)(1)(C)(ii)-(iii), which points to the limit set under 12 U.S.C. 1454(a)(2), LII). VA says to use the One-Unit Limit for the property’s county from the FHFA lists, even for a home with more than one unit, and to find the entitlement already used in the Entitlement Charged column of your COE. See the conforming loan limit for the 2026 figures and FHFA’s lookup (FHFA).
Worked example
This example is only for the math, with example figures, not terms from any lender. It uses an area at the 2026 one-unit baseline of $832,750 and $40,000 of entitlement still charged to an earlier VA loan.
| Step | Math | Result |
|---|---|---|
| 25% of the one-unit limit | $832,750 × 0.25 | $208,187.50 |
| Less entitlement already used | $208,187.50 − $40,000 | $168,187.50 |
| Loan amount the remaining entitlement covers at 25% | $168,187.50 × 4 | $672,750.00 |
VA uses the same steps and says a lender uses your remaining bonus entitlement to decide the largest loan it will make without a down payment. VA also says a lender may require a down payment if your remaining entitlement does not cover a 25 percent guaranty for the loan amount you want, and that with a down payment you may be able to borrow more than the county limit. Ask the lender how it figures that down payment.
Restoring entitlement
VA may exclude, that is restore, entitlement used on an earlier loan in these cases (38 U.S.C. 3702(b), LII; 38 CFR 36.4302(j)):
| Case | Conditions |
|---|---|
| Sold or lost the home | The home was disposed of or destroyed by fire or other natural hazard, and the loan was repaid in full, VA was released from liability, or any VA loss was paid in full |
| A veteran assumed the loan | A veteran buyer assumed the balance, agreed to substitute their own entitlement for the amount used, and meets the other requirements |
| Same property | The loan was repaid in full and the new VA loan is secured by the same property |
| Any other case, once only | The loan was repaid in full or VA was released from liability, and any VA loss was paid in full; this can be used only once |
VA may waive conditions in the first case. Paying the loan down does not restore entitlement by itself (36.4302(i)). If you sell a home and a buyer assumes your VA loan without substituting their entitlement, yours stays charged; see assumable mortgage basics.
The Certificate of Eligibility
VA says the COE confirms for your lender that you qualify for the home loan benefit, and that you can request it online, through your lender, or by mail with VA Form 26-1880; what you need depends on your service (VA, last updated September 22, 2026). The statute says that when a loan is guaranteed, VA records on your discharge or eligibility certificate the amount of guaranty used and any amount left (3702(c)). Ask VA or your lender how to request restoration of entitlement.
Related costs and refinances
The VA funding fee is separate from entitlement; see the VA home loan funding fee. For an interest rate reduction refinancing loan, the guaranty is the greater of the original guaranty on the loan being refinanced or 25 percent of the new loan (38 CFR 36.4302(b)); see the VA streamline refinance (IRRRL).
Questions to ask
- Does my COE show full entitlement, and how much is charged to earlier loans?
- Can any used entitlement be restored before I apply, and which case applies to me?
- What county one-unit limit and year will you use to figure my remaining entitlement?
- If my remaining entitlement does not cover 25 percent, what down payment do you need and how did you figure it?
Checklist
- Get your COE before you shop for a home.
- Check the Entitlement Charged column for earlier loans.
- Look up the one-unit limit for the county and year.
- Keep proof that an earlier VA loan was paid in full or the home was sold.
- Before letting a buyer assume your VA loan, ask whether they will substitute their entitlement.
You can submit a complaint about a lender at consumerfinance.gov/complaint.
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Sources
- LII: 38 U.S.C. 3703, Basic provisions relating to loan guaranty and insurance
- LII: 38 U.S.C. 3702, Basic entitlement
- eCFR: 38 CFR 36.4302, Computation of guaranties or insurance credits, current text up to date as of October 28, 2026
- VA: VA home loan entitlement and limits (last updated August 12, 2025)
- VA: How to request a VA home loan Certificate of Eligibility (last updated September 22, 2026)
- LII: 12 U.S.C. 1454, see (a)(2), conforming loan limits for the other government-sponsored enterprise
- FHFA: Conforming Loan Limit Values, lists and map by area
- CFPB: Submit a complaint
Disclosure: Modern Lending Solutions is not a lender, loan broker or agent for any lender or loan broker, and does not make credit decisions. Any compensation we receive is paid by participating lenders, only for advertising services. This guide is general information, not financial or legal advice.