Published on: May 31st, 2022 | Written by Jimmy Vercellino
va entitlement calculator

VA Entitlement can be confusing if this is your first time purchasing a home with the VA Loan.

And it can be just as challenging if this is your second time. Reusing VA entitlements comes with tons of questions about loan limits, how much entitlement you have left, and more.

We’ll explain more about VA entitlement if you’re learning for the first time or need a quick refresher.

Then, you calculate how much you have based on the county’s loan limit and move towards purchasing the property you’ve always wanted.

What are Basic and Tier 2 VA Entitlements?

VA entitlement is how much of your loan the VA guarantees in case of default.

This gives your lender confidence so they can offer the VA Loan with zero downpayments and zero PMI. And it also provides a unique opportunity to have more than 1 VA Loan at a time.

If you’ve never used entitlement before or the Department of Veterans Affairs (VA) has renewed your entitlement, you start with what’s called Basic Entitlement. It’s $36,000 for home loans under $144,000.

Veterans and active-duty servicemembers qualify for Tier 2 Entitlement (also called bonus entitlement) if you’re going for a home over $144,000. The VA guarantees $36,000 from Basic Entitlement and 25% of your county’s loan limit.

Together, both forms of entitlement combine as your Full Entitlement, giving you the most money possible to purchase a home.

Calculating Your Remaining VA Entitlement

Calculating your remaining VA Entitlement can be done on your own or with the help of an experienced lender. Basic, 2nd Tier, and remaining entitlement calculations are the most common we see with the home buyers we work with.

We recommend reading these scendarios to get an idea of how a VA-approved lender would figure out your entitlement.

Basic Entitlement Calculation

You’ll receive $36,000 in basic entitlement from the VA if you’re loan amount is under $144,000. The Certificate of Eligibility (COE) informs whether you stil carry Basic Entitlement or not.

For example, the VA would always guarantee $36,000 towards the VA Home Loan if the total is below $144,000.

We’ve seen buyers find cute homes in Tennessee and North Carolina in that price range and receive financial support in case of default.

2nd Tier Entitlement Calculation

With the help of a VA lender, you’ll take 25% of the county’s VA Loan Limit and figure out the amount of entitlement after you’ve used the basic up.

A common scenario we’ve seen in Arizona is clients that move to Maricopa County. Since the loan limit is $647,200, you would be eligible for a 2nd Tier Entitlement of $161,800.

Remaining Entitlement Calculation

You may have already used the $36,000 Basic Entitlement and what the VA calls full entitlement but want to purchase another property.

In these cases, an experienced lender walk you through a simple equation to calculate your remaining entitlement. They refer back to the previous VA Loan and use it for discovering the new amount.

Let’s take the gorgeous home in Maricopa County from the previous example.

You may want to move to the Vanderberg Air Force Base in California due to a PSC, but not have any entitlement left.

Having used all your entitlement, the VA would take 25% of the new county’s VA Loan Limit ($783,150 in Santa Barbara) and subtract the entitlement you’ve used from it.

($783,150 x .25) - (647,200 x .25) = Remaining VA Entitlement

How Much Home Can I Buy with Zero Down Payment?

VA Home Loans don’t require a down payment as long as you stay within the Basic and 2nd Tier Entitlement amounts. If you go above, the lender asks for money down to protect their investment.

You can also use the VA Loan to purchase a home with a maximum loan amount that’s equal to or less than the remaining entitlement.

We believe it’s your family’s turn to live the American Dream and enjoy this Great Country you’ve sacrificed for. By working with an experienced VA Lender, they’ll help you get the biggest bang for your VA entitlement buck.

VA Loan Limit by County

The VA is a government agency that understands you and your partner may be stationed or retiring in a more expensive part of the country, such as California. They adjust VA Loan Limits according to the cost of living of the particular county.

You can purchase your dream home with confidence knowing the VA will give enough. Honoring your military service, the Dept. of Veterans Affairs reward you with plenty of cash to reap with a no down payment home loan.

Take a look at the different conforming loan limits for each county. Most states have the standard VA Loan Limit of $647,200 and make it simple to calculate your 2nd tier entitlement.

AlabamaAll areas$647,200
AlaskaAleutians East$970,800
Aleutians West$970,800
Anchorage$970,800
Bethel$970,800
Bristol Bay$970,800
Denali$970,800
Dillingham$970,800
Fairbanks North Star$970,800
Haines$970,800
Hoonah Angoon$970,800
Juneau$970,800
Kenai Peninsula$970,800
Ketchikan Gateway$970,800
Kodiak Island$970,800
Kusilvak$970,800
Lake And Peninsula$970,800
Matanuska Susitna$970,800
Nome$970,800
North Slope$970,800
Northwest Arctic$970,800
Petersburg$970,800
Prince Of Wales Hyder$970,800
Sitka$970,800
Skagway$970,800
Southeast Fairbanks$970,800
Valdez Cordova$970,800
Wrangell$970,800
Yakutat$970,800
All other areas$647,200
ArizonaAll areas$647,200
ArkansasAll areas$647,200
CaliforniaAlameda$970,800
Contra Costa$970,800
El Dorado$675,050
Los Angeles$970,800
Marin$970,800
Monterey$854,450
Napa$897,000
Orange$970,800
Placer$675,050
Sacramento$675,050
San Benito$970,800
San Francisco$970,800
San Luis Obispo$805,000
San Mateo$970,800
Santa Barbara$783,150
Santa Clara$970,800
Santa Cruz$970,800
Sonoma$764,750
Ventura$851,000
Yolo$675,050
All other areas$647,200
ColoradoAdams$684,250
Arapahoe$684,250
Boulder$747,500
Broomfield$684,250
Clear Creek$684,250
Denver$684,250
Douglas$684,250
Eagle$862,500
Elbert$684,250
Garfield$856,750
Gilpin$684,250
Jefferson$684,250
Park$684,250
Pitkin$856,750
Routt$678,500
San Miguel$756,700
Summit$822,375
All other areas$647,200
ConnecticutFairfield$695,750
All other areas$647,200
DelawareAll areas$647,200
FloridaMonroe$710,700
All other areas$647,200
GeorgiaAll areas$647,200
HawaiiHawaii$970,800
Honolulu$970,800
Kalawao$970,800
Kauai$970,800
Maui$970,800
IdahoBlaine$648,600
Camas$648,600
Teton$970,800
All other areas$647,200
IllinoisAll areas$647,200
IndianaAll areas$647,200
IowaAll areas$647,200
KansasAll areas$647,200
KentuckyAll areas$647,200
LouisianaAll areas$647,200
MaineAll areas$647,200
MarylandCalvert$970,800
Charles$970,800
Frederick$970,800
Montgomery$970,800
Prince Georges$970,800
All other areas$647,200
MassachusettsDukes$970,800
Essex$770,500
Middlesex$770,500
Nantucket$970,800
Norfolk$770,500
Plymouth$770,500
Suffolk$770,500
All other areas$647,200
MichiganAll areas$647,200
MinnesotaAll areas$647,200
MississippiAll areas$647,200
MissouriAll areas$647,200
MontanaAll areas$647,200
NebraskaAll areas$647,200
NevadaAll areas$647,200
New HampshireRockingham$770,500
Strafford$770,500
All other areas$647,200
New JerseyBergen$970,800
Essex$970,800
Hudson$970,800
Hunterdon$970,800
Middlesex$970,800
Monmouth$970,800
Morris$970,800
Ocean$970,800
Passaic$970,800
Somerset$970,800
Sussex$970,800
Union$970,800
All other areas$647,200
New MexicoAll areas$647,200
New YorkBronx$970,800
Dutchess$726,525
Kings$970,800
Nassau$970,800
New York$970,800
Orange$726,525
Putnam$970,800
Queens$970,800
Richmond$970,800
Rockland$970,800
Suffolk$970,800
Westchester$970,800
All other areas$647,200
North CarolinaAll areas$647,200
North DakotaAll areas$647,200
OhioAll areas$647,200
OklahomaAll areas$647,200
OregonAll areas$647,200
PennsylvaniaPike$970,800
All other areas$647,200
Rhode IslandAll areas$647,200
South CarolinaAll areas$647,200
South DakotaAll areas$647,200
TennesseeCannon$694,600
Cheatham$694,600
Davidson$694,600
Dickson$694,600
Macon$694,600
Maury$694,600
Robertson$694,600
Rutherford$694,600
Smith$694,600
Sumner$694,600
Trousdale$694,600
Williamson$694,600
Wilson $694,600
All other areas $647,200
TexasAll areas $647,200
Utah Summit $970,800
Wasatch $970,800
All other areas $647,200
VermontAll areas $647,200
VirginiaAlexandria City $970,800
Arlington $970,800
Clarke$970,800
Culpeper $970,800
Fairfax$970,800
Fairfax City$970,800
Falls Church City$970,800
Fauquier$970,800
Fredericksburg City$970,800
Loudoun$970,800
Madison$970,800
Manassas City$970,800
Manassas Park City$970,800
Prince William$970,800
Rappahannock$970,800
Spotsylvania$970,800
Stafford$970,800
Warren$970,800
All other areas$647,200
WashingtonKing$891,250
Pierce$891,250
Snohomish$891,250
All other areas$647,200
West VirginiaJefferson$970,800
All other areas$647,200
WisconsinAll areas$647,200
WyomingTeton$970,800
All other areas$647,200
District Of ColumbiaDistrict Of Columbia$970,800
Guam$970,800
All other areas$647,200
Saint Croix$970,800
Saint John$970,800
Saint Thomas$970,800
All other areas$647,200

Source: Veterans United

Entitlement for First-Time or Seasoned Buyers

VA Entitlement is for any active-duty service member or veteran that’s ready to purchase the home their family’s always wanted. It’s a perfect time to buy a home near your station or to settle down near family in your last home.

We have a team of military-run lenders that understand the process of buying a 1st or 2nd home with the VA Loan. Our staff is ready to answer your questions and walk you through the VA Loan Journey step-by-step.

Give us a call today at (480)-569-1363, so we can honor you for your current or previous military service to this Great Country.

Benefits

Author

VA loan specialist Jimmy Vercellino
Jimmy Vercellino

Mortgage Originator, Specializing in VA Loans

Jimmy Vercellino, a Marine veteran, specializes in helping military veterans benefit from the VA Loan Program and buy the home of their dreams.