VA home loan entitlement is the specific dollar amount that the Department of Veterans Affairs guarantees to pay back your lender if you are unable to make your mortgage payments.
This guide will clarify the 2026 rules for entitlement so you can buy your next home with confidence and zero stress.
Below is everything you need to know about how your entitlement works and why “no loan limits” might be the best news you hear today.
Understanding VA Home Loan Entitlement
When we talk about the VA home loan entitlement, we are talking about a promise from the government to your bank. This promise makes it safe for banks to give you a loan with no money down.
In 2026, the rules are very friendly to veterans, but they can be confusing if you don’t know the difference between “basic” and “bonus” entitlement.
What is Basic Entitlement?
Every eligible veteran starts with a basic entitlement of $36,000. This was the amount set a long time ago. Today, $36,000 does not buy much of a house. Because of this, the VA created a second layer of help to keep up with rising home prices.
What is Bonus (Second-Tier) Entitlement?
Bonus entitlement (also called Tier 2) kicks in for any loan over $144,000. It bridges the gap between the basic $36,000 and 25% of the home's value. In 2026, if you have full entitlement, the VA guarantees up to 25% of your total loan amount, no matter how high it is.
“Calculating entitlement can be confusing, but you don’t have to do it alone. Our team specializes in verifying COEs and maximizing your $0-down buying power.“
VA Loan Limits in 2026
There is a big difference between “loan limits” and “guarantee limits.” It is important to know which one applies to you.
Full Entitlement: No Limits
As of 2020, if you have your full entitlement, there are no VA-imposed loan limits. This means if a bank says you can afford a $1 million home, the VA will back it with $0 down. You have full entitlement if:
- You have never used a VA loan before.
- You paid off your last VA loan and sold the property.
- You have a “restored” benefit on your Certificate of Eligibility (COE).
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Partial Entitlement: When Limits Apply
If you already have a VA loan and want to buy a second home, or if you lost a home to foreclosure in the past, you have “partial entitlement.” In this case, the VA uses the 2026 conforming loan limits set by the government to decide how much you can borrow for $0 down.
| 2026 Area Type | 1-Unit Limit (Single Family) |
| Standard Counties | $832,750 |
| High-Cost Areas | $1,249,125 |
| Special Baseline (AK, HI, GU, VI) | $1,249,125 |
Check the official VA.gov site for your specific county limit.
How to Calculate Your Remaining Entitlement
If you have a current loan and want to buy another home, you need to do a little math. Lenders use a standard formula to find your $0-down buying power.
- Find the County Limit: Look up the 2026 limit for your new area (usually $832,750).
- Calculate Max Guaranty: Take that limit and multiply it by 25% ($832,750 x 0.25 = $208,187.50).
- Subtract Current Use: Subtract the entitlement amount currently tied up in your old loan.
- Multiply by 4: Take the remaining number and multiply it by 4. This is your maximum $0-down loan amount.
Example: If you have $50,000 used and live in a standard area, your math is: ($208,187.50 – $50,000) x 4 = $632,750. You can buy a home up to that price with no money down.
Restoration of Entitlement
You do not have to lose your benefit once you use it. You can “reset” it back to full status through a process called restoration.
- Full Restoration: This happens when you sell your home and pay the loan in full. You must ask the VA to restore your benefit using Form 26-1880.
- One-Time Restoration: If you pay your loan in full but keep the home (maybe to rent it out), you can ask for a one-time reset to buy a new primary home.
- Substitution of Entitlement: If you sell your home to another veteran who uses their own benefit to take over your loan, your entitlement is freed up.
Conclusion
Understanding VA home loan entitlement is the key to unlocking your full military benefits in 2026. Whether you are a first-time buyer or looking to use your benefit again, knowing how the government “guarantee” works helps you plan for a $0-down purchase.
While the math behind basic and bonus entitlement can seem tricky, the results are clear: more buying power and lower upfront costs for those who served.
By keeping track of your Certificate of Eligibility and understanding county limits, you can make smart moves in the housing market. Your entitlement is a lifelong reward, ensure you use it wisely.
Read More Can You Use a VA Loan Twice or More?
Frequently Asked Questions
Does my COE show my loan limit?
No. Your Certificate of Eligibility (COE) shows how much basic entitlement you have used. It does not show a “limit” because, for most people, there is no limit.
Can I buy a home above the county limit?
Yes! If you have partial entitlement and the home price is higher than your remaining benefit allows, you can still get the loan. You will just have to make a small down payment (usually 25% of the difference).
What if I have a 0% disability rating?
Your entitlement works the same way regardless of your disability rating. However, if you have a rating of 10% or higher, you do not have to pay the VA Funding Fee, which saves you thousands of dollars.
Is entitlement the same as cash?
No. Entitlement is a “guarantee.” It is a promise to the lender. It is not money you can spend on repairs or furniture.
How many times can I restore my entitlement?
You can restore it every time you sell your home and pay off the loan. There is no limit to how many times you can do this over your lifetime.
