VA Loan Entitlement
Entitlement is the amount the VA guarantees on your loan. Understanding basic vs. bonus entitlement — and how restoration works — is what separates 'I can only borrow $X' from 'I can borrow whatever I qualify for'.
Basic vs. bonus entitlement
Basic entitlement: $36,000. This is the historical VA guarantee amount and appears on every COE.
Bonus (Tier 2) entitlement: an additional guarantee scaling with the conforming loan limit — currently up to $209,625 for most counties.
Together, full entitlement means the VA guarantees 25% of a loan up to (and often above) the county loan limit.
Full vs. partial entitlement
Full entitlement: no county loan limit applies to you. You can borrow whatever a lender approves, $0 down.
Partial entitlement: you have an active VA loan (or an unpaid claim from a prior default). County limits apply, and your $0-down power is reduced.
How to restore entitlement
Automatic restoration happens when you sell the property and pay off the VA loan in full.
One-time restoration: if you paid off the VA loan but kept the property, you can request restoration once in your lifetime.
Substitution: if a veteran assumes your VA loan and substitutes their entitlement, yours is restored.
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