VA Loan Entitlement refers to the dollar amount of guarantee that the Department of Veterans Affairs (VA) will provide to a lender in the event of default on a VA loan. It is essentially the VA's promise to reimburse a portion of the loan to the lender if the borrower is unable to make the mortgage payments.

VA Loan Entitlement is typically expressed as a specific dollar amount, which represents the maximum loan limit that the VA will guarantee for a qualified borrower. The entitlement amount can vary depending on factors such as the borrower's military service and the location of the property being financed.

In most cases, the VA guarantees up to 25% of the loan amount, with a maximum entitlement limit determined by the conforming loan limits set by the Federal Housing Finance Agency (FHFA) for the specific county where the property is located. VA Loan Entitlement does not represent the total amount a borrower can borrow. It signifies the portion of the loan that the VA guarantees to the lender.

According to the US Department of Veterans Affairs, you have full entitlement if you meet any of these requirements.

At least one of these must be true:

• You’ve never used your home loan benefit
• You’ve paid a previous VA loan in full and sold the property (in this case, you’d have your full entitlement restored)
• You’ve used your home loan benefit, but had a foreclosure or compromise claim (also called a short sale) and repaid us in full

If you have questions about loan entitlement, our VA-approved lenders would be happy to talk to you about your options.

VA loans have no down payment.

No, you will not have to pay PMI for a VA loan. VA loans are government-backed loans that do not require a down payment, so there is no need to pay PMI in case you default on your loan. However, you will have to pay a one-time VA funding fee, which can vary from 0% – 3.3% based on your status with Veteran Affairs. This fee helps to offset the cost of the VA loan program and makes it available to more Veterans.

If you have reached full entitlement, you can borrow as much as the lender is willing to provide. Your lender will discuss VA home loan limits if you have not reached full entitlement.

No. You can get a VA loan multiple times if you meet the requirements, such as selling your home and paying off the initial VA loan.

No, VA loans are not interest free. However, they do have some advantages over other types of loans, such as no down payment required and no private mortgage insurance (PMI). VA loans also typically have lower interest rates than conventional loans. Here are some of the pros and cons of VA loans:

Pros:

• No down payment required
• No private mortgage insurance (PMI)
• Competitive interest rates
• Lower closing costs
• Easier to qualify
• Convenient refinancing options

Cons:

• VA funding fee (0% to 3.3%)
• May have to pay closing costs upfront
• Borrowers must meet eligibility requirements
• Loan limits vary by county

If you are a Veteran or active duty service member, a VA loan may be a good option for you. However, it is important to compare all of your options before making a decision.

The maximum amount for a VA loan depends on your location. In most counties, the maximum loan amount is $726,200 in 2023. However, in some high-cost areas, the maximum loan amount is higher. If you are a Veteran and are considering a VA loan, you should talk to a lender to find out how much you can borrow. Our mortgage specialists are here to help guide you through the process.

Yes, a family member can use your VA loan if they are a co-borrower on the loan and meet specific criteria. The U.S. Department of Veteran Affairs allows co-borrowers on VA loans if they are your spouse or are a former or current member of the military. The co-borrower must meet the same eligibility requirements as the Veteran, such as being a U.S. citizen and having good credit.

Here are some of the benefits of having a family member as a co-borrower on a VA loan:

• You can combine incomes to qualify for a larger loan amount.
• The co-borrower can help you make monthly payments if you are unable to.
• The co-borrower can inherit the property if you die.

If you are considering having a family member as a co-borrower on your VA loan, be sure to talk to one of our specialists to learn more about the pros and cons.

Yes, you can use your VA loan on 2 properties, but there are some restrictions. You can only use your VA loan on 2 properties if you intend to make one of the properties your primary residence. You can also use your VA loan on a second property if you are moving for work or other military-related reasons. The VA loan program is not designed to directly finance investment properties. Your primary intention at the time of purchasing the home must be as the owner-occupant rather than for investment purposes. If you are not sure if you qualify to use your VA loan on 2 properties, you should talk to our VA-approved lenders.

Here are some additional things to keep in mind if you are considering using your VA loan on 2 properties:

• You will need to have enough entitlement to cover both properties.
• You will need to be able to afford the monthly payments on both properties.
• You will need to meet the VA's occupancy requirements for both properties.

If you are interested in using your VA loan on 2 properties, you should talk to one of our VA-approved lenders to learn more about your options.