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How VA Home Loan Limits and Entitlement Work Together

June 20, 20233 min read

Attention all eligible Veterans! Are you ready to maximize your VA home loan benefits and secure the home of your dreams? Understanding how VA home loan limits and entitlement work together is critical to achieving this goal. Whether you have full entitlement or remaining entitlement, knowing how to navigate these terms will guide you toward smart home financing. So, fall in and get ready to learn how to leverage your VA benefits like a pro.

Full entitlement means you have not used your VA home loan benefit before while remaining entitlement indicates you used a portion of your benefit already.

Understanding how entitlement shapes loan limits guides you through qualifying for the largest possible VA-backed mortgage.

Full Entitlement Removes VA Loan Limits Above $144K

Veterans with full entitlement face no official VA loan limits above $144,000, opening up financing options for higher-priced properties nationwide.

You have full entitlement if:

• You've never used your VA home loan benefit before

• You paid off a prior VA loan in full, restoring your eligibility

• You reversed a short sale or foreclosure involving a VA loan through the VA’s specially adapted housing program

With full entitlement, a VA-guaranteed loan allows:

• A no-money-down mortgage up to the home’s appraised value

• An interest rate as low as 0.5% less than conventional and FHA loans

• VA backing up to 25% of your loan amount if you default

Since the VA essentially cosigns up to 25% of your balance with full entitlement, lenders feel more comfortable extending you the largest possible mortgage, limited mainly by affordability factors like your income and credit profile.

Remaining Entitlement Requires Down Payments Above $144K

When you have used a portion of your VA home loan benefit before, the remaining entitlement caps your maximum allowable mortgage, often at amounts below higher-priced homes.

Your remaining entitlement equals:

Base Limit - Prior VA Loan Usage = Remaining Entitlement Limit

The base limit begins at $144,000 in lower-cost areas, rising to over $700,000 in expensive regions. However, subtracting your past VA loan(s) lowers the final limit, which typically falls between $144,000 and $400,000.

With remaining entitlement, the VA guarantees only up to 25% of your reduced loan limit, meaning lenders often require down payments above $144,000 to mitigate risk. They assess income, cash, and credit to decide how large a mortgage they’ll approve.

Entitlement Status Guides Smart Home Financing

Your Certificate of Eligibility shows clearly whether you have full or remaining VA home loan entitlement.

If eligible, full entitlement empowers you to pursue higher-priced properties nationwide with no money-down financing.

The remaining entitlement points you toward down payment options, balancing VA loan limits with lender requirements and home prices that align with your long-term financial picture.

Click here to see the List of conforming loan limits for all counties and county-equivalent areas in the U.S.

Armed with this knowledge, you can negotiate the best possible VA loan terms and secure the largest feasible mortgage, maximizing your entitlement to find the perfect home within your means.

Never hesitate to contact the Financial Suit Team for guidance on next steps or questions regarding VA Loan Limits and Entitlement. We are a team, here to support you through every twist and turn along the home buying journey.

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