All About VA Loan Entitlements for Veterans

All About VA Loan Entitlements for Veterans

Veterans are the modern-day superheroes that fight for the freedom of the American people. With the millions of Americans risking their lives for the free world, it is only right their service is duly repaid and recognized. Thankfully, the Department of Veterans Affairs (VA) is the government agency at hand that provides for these heroes’ welfare and safety.

When any military personnel comes home from service, they usually look for a home first. Spending months or even years away from the United States creates an atmosphere of homesickness, and this is where it becomes time to seek the best mortgage rate for a residence. Mortgage rates can vary depending on the agency you take a loan from, and serving under the US flag can offer you a VA loan entitlement.

VA Loan Entitlements

The VA has assisted active-duty personnel, tour veterans, and military families in achieving their homes for decades. However, this agency isn’t fulfilling the loan, as borrowers still need to apply for their mortgage rates and refinancing schemes through lenders. The VA merely offers a guaranteed portion of a loan by eligible candidates called the VA loan entitlement.

Since homes can be costly depending on where you live, VA loan entitlements can be considerable assistance for military members in achieving their dream homes. With the guarantee set by the VA, this assumes that when the borrower defaults on their payments, the lender will receive a specific amount to compensate for the loan taken out. Overall, if a lender acknowledges VA loans in their services, they will generally view entitlement amounts and approve the loan that can go up to four times the amount without a downpayment.

However, it is essential to note that there is never a guarantee that VA loans will be approved, just like any other loan. This lack of assurance means that you’ll always want to have a reputable credit history, an excellent income-to-debt ratio, and even other accounts that assist financially.

What Are the Limits?

Loan entitlement limits for full-scale ones used to have a limit on values over $144,000. However, since 2020, a full-VA entitlement entails zero limits. It is basically a maximum amount given by the government to a lender or a bank if the borrower defaults on the payment process. With the limit to borrowing set on what the lender and borrower agree on, the VA program isn’t a limiter on mortgage rates or other refinancing procedures.

Some instances might require other loan parameters, such as a downpayment if the loan being taken out is enormous. This increase typically holds when borrowing over four times the entitlement amount, so try to keep it as low as possible. Both the VA entitlement and downpayment made must equal a quarter of the home’s market value.

Losing Your VA Entitlement

The VA benefits do not last forever, and it’s highly possible to lose the given entitlement permanently. Defaulting on payments on the VA loan and foreclosing then selling the property for less than what you owe means that the government must reimburse the full quarter guaranteed. Costs to the lender will then be deducted from the total entitlement, and this won’t be accessible to the homeowner until the VA is repaid for its losses.


VA loans are a great way for military members to buy a home and finance it with fewer hassles. They can get the best mortgage rate while having a backup plan in case of any issues. Secure your VA entitlement loan today to help you get started, and thank you for your service!

Frontline Financial are mortgage brokers in Salt Lake City, Utah, that assist veterans in buying their homes. Only very few answer the phone when duty calls, and we are ultimately grateful for the men and women who lay down their lives for our wonderful country. Contact us to learn more about the best mortgage rates available for veterans today!