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.
Alabama | All areas | $647,200 |
---|---|---|
Alaska | Aleutians 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 | |
Arizona | All areas | $647,200 |
Arkansas | All areas | $647,200 |
California | Alameda | $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 | |
Colorado | Adams | $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 | |
Connecticut | Fairfield | $695,750 |
All other areas | $647,200 | |
Delaware | All areas | $647,200 |
Florida | Monroe | $710,700 |
All other areas | $647,200 | |
Georgia | All areas | $647,200 |
Hawaii | Hawaii | $970,800 |
Honolulu | $970,800 | |
Kalawao | $970,800 | |
Kauai | $970,800 | |
Maui | $970,800 | |
Idaho | Blaine | $648,600 |
Camas | $648,600 | |
Teton | $970,800 | |
All other areas | $647,200 | |
Illinois | All areas | $647,200 |
Indiana | All areas | $647,200 |
Iowa | All areas | $647,200 |
Kansas | All areas | $647,200 |
Kentucky | All areas | $647,200 |
Louisiana | All areas | $647,200 |
Maine | All areas | $647,200 |
Maryland | Calvert | $970,800 |
Charles | $970,800 | |
Frederick | $970,800 | |
Montgomery | $970,800 | |
Prince Georges | $970,800 | |
All other areas | $647,200 | |
Massachusetts | Dukes | $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 | |
Michigan | All areas | $647,200 |
Minnesota | All areas | $647,200 |
Mississippi | All areas | $647,200 |
Missouri | All areas | $647,200 |
Montana | All areas | $647,200 |
Nebraska | All areas | $647,200 |
Nevada | All areas | $647,200 |
New Hampshire | Rockingham | $770,500 |
Strafford | $770,500 | |
All other areas | $647,200 | |
New Jersey | Bergen | $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 Mexico | All areas | $647,200 |
New York | Bronx | $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 Carolina | All areas | $647,200 |
North Dakota | All areas | $647,200 |
Ohio | All areas | $647,200 |
Oklahoma | All areas | $647,200 |
Oregon | All areas | $647,200 |
Pennsylvania | Pike | $970,800 |
All other areas | $647,200 | |
Rhode Island | All areas | $647,200 |
South Carolina | All areas | $647,200 |
South Dakota | All areas | $647,200 |
Tennessee | Cannon | $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 | |
Texas | All areas | $647,200 |
Utah | Summit | $970,800 |
Wasatch | $970,800 | |
All other areas | $647,200 | |
Vermont | All areas | $647,200 |
Virginia | Alexandria 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 | |
Washington | King | $891,250 |
Pierce | $891,250 | |
Snohomish | $891,250 | |
All other areas | $647,200 | |
West Virginia | Jefferson | $970,800 |
All other areas | $647,200 | |
Wisconsin | All areas | $647,200 |
Wyoming | Teton | $970,800 |
All other areas | $647,200 | |
District Of Columbia | District 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.