Restoring Veterans Administration Loan Entitlement
VA loans are made on the basis of an "entitlement." Entitlement refers to the amount of money the government will guarantee to a VA loan lender on behalf of a VA-eligible borrower. Most lenders will lend up to four times the available entitlement, without requiring a down payment.
To be approved for a VA Loan, a Veteran must prove his or her entitlement with a Certificate of Eligibility. Once you’ve proved your entitlement, you never lose it.
Restoring Entitlement applies if you’ve previously had a VA loan. You could still have "remaining entitlement" that you could “restore” to use for another VA loan.
Today, the maximum amount of entitlement is $36,000. Since the amount of entitlement was much lower in the past, and the veteran is able to use the current benefit amount, some veterans are allowed a new entitlement, even if they used some entitlement in the past.
For example, the maximum amount of entitlement in 1974 was $12,500. The difference between the 2008 maximum entitlement and the 1974 maximum is $23,500. Because of the increase, many borrowers have been able to use the remaining entitlement of $23,500 to buy another home with VA financing.
How do I obtain restoration of entitlement?
If you decide to do this yourself, you’ll need to obtain and complete VA Form 26-1880 from your nearest Veteran’s Affairs office. Alternatively, our VA Loan Specialists may be able to do this for you. We offer professional advice and assistance and will provide you with all the help you need in obtaining restoration of entitlement.