Partial Entitlement
county limits still matter for zero down math
Partial VA Entitlement, 2026 Zero Down Math
Partial entitlement means some of your VA guaranty is already tied up, so your zero down buying power is not unlimited. The Blue Water Navy law removed loan limits for full entitlement, but partial entitlement still uses county conforming limits and the 25 percent guaranty concept. The fastest way to estimate your ceiling is remaining entitlement times four, then compare it to your target price.
When you have partial entitlement
- Active VA loan: If you still have a VA mortgage you are keeping, part of your entitlement is still in use.
- Paid off but still own: If you paid off a VA loan and kept the home, entitlement can stay tied up unless you use one time restoration.
- Short sale or foreclosure loss: If VA took a loss and it was not repaid, entitlement can remain charged and reduce future zero down capacity.
- COE is the truth: Your Certificate of Eligibility shows what is charged and gives the starting point for the math.
2026 baseline math steps for zero down
- Start with county limit: In most counties the 2026 baseline is $832,750, with $1,249,125 in high cost areas and $1,873,675 in AK, HI, GU, and USVI.
- Find county max guaranty: Multiply the county loan limit by 0.25 to get the maximum guaranty used in partial entitlement math.
- Compute remaining entitlement: Subtract entitlement already used and not restored from the county max guaranty.
- No down ceiling estimate: Multiply remaining entitlement by 4 to estimate the maximum new loan that can be done at zero down.
Example using the 2026 baseline county limit
- Used entitlement: If your existing VA loan is $300,000, the used guaranty concept is $300,000 times 0.25, which is $75,000.
- Total available guaranty: $832,750 times 0.25 equals $208,187.50 of total guaranty in a standard county.
- Remaining entitlement: $208,187.50 minus $75,000 equals $133,187.50 remaining.
- Zero down ceiling: $133,187.50 times 4 equals a $532,750 estimated max new loan at zero down.
If the new home costs more than your ceiling
- Shortfall rule: If the price is above your zero down ceiling, lenders usually want 25 percent coverage on the amount above the ceiling.
- Down payment math: A common rule is 25 percent of the difference between your target loan amount and your zero down ceiling.
- Funding fee note: Subsequent use often has a higher funding fee at zero down, and putting at least 5 percent down can reduce it.
- Restore to reset: Selling and paying off the old VA loan, or using one time restoration when eligible, can rebuild full entitlement for future use.
FAQs
How do I know if I have partial entitlement?
What is the 2026 baseline limit used for partial entitlement?
How much down do I need if I exceed my zero down ceiling?
Explore VA Loan Entitlement Topics
- What Is VA Loan Entitlement? Learn how VA entitlement works and why it matters.
- Partial vs. Full VA Loan Entitlement Compare partial entitlement with full entitlement in VA lending.
- How Partial Entitlement Works Understand when partial entitlement applies and how it affects loans.
- Understanding Second-Tier Entitlement See how second-tier entitlement lets Veterans reuse VA benefits.
- VA Bonus Entitlement Explained Learn how bonus entitlement supports higher-priced home purchases.
- How to Restore VA Loan Entitlement Restore entitlement after refinancing, payoff, or selling your home.
- Entitlement Rules After Foreclosure See what happens to VA entitlement if foreclosure occurs.
What Is Partial VA Entitlement?
Partial entitlement exists when part of your VA guaranty is already tied to another VA-backed loan or was charged from a prior transaction. With full entitlement, VA doesn’t cap your $0-down potential; with partial, remaining guaranty sets the practical $0-down ceiling and may require a down payment to bridge any coverage gap lenders expect.
- Working definition: Your available VA entitlement is the guaranty balance that can be applied to a new mortgage after prior usage or a charged amount has reduced the total.
- Why it matters: Remaining guaranty determines whether your next offer qualifies at $0 down or needs cash to meet the lender’s minimum risk coverage at approval and closing.
- Context check: Understanding partial entitlement vs full entitlement helps you pick realistic price bands and negotiate with confidence in competitive markets.
VA Loan Resources
- Complete VA Loan Guide – Eligibility, core benefits, and how VA mortgages work.
- VA Loan Requirements – Credit, income, and service rules you need to qualify.
- VA Funding Fee Explained – Rates, exemptions, and how to roll it into your loan.
- VA Loan Closing Costs – Typical fees and how sellers can help pay them.
- VA Minimum Property Requirements (MPRs) – What homes must have to pass the VA appraisal.
- Compare 2–3 VA Lenders – Get personalized rate quotes from vetted VA-approved lenders.
How Partial Entitlement Math Works
VA typically guarantees 25% of the loan amount. With partial entitlement, you first calculate how much guaranty remains, then test whether that remainder equals at least 25% of the target loan. If not, the shortfall becomes your required down payment so the lender still sees adequate risk coverage under VA guidelines.
- Step 1—Entitlement used: Multiply your prior VA loan amount by 0.25 to estimate guaranty already in use and unavailable for the next transaction you plan to finance.
- Step 2—Max county guaranty: Take 25% of your local conforming limit to find the maximum guaranty available when entitlement isn’t full or a prior charge remains outstanding on file.
- Step 3—Remaining guaranty: Subtract used entitlement from the county maximum; multiply what remains by four to estimate your $0-down ceiling on the next loan application.
| County Conforming Limit | Max Guaranty (25%) | Entitlement Used | Remaining Guaranty | Estimated $0-Down Ceiling |
|---|---|---|---|---|
| $832,750 (baseline) | $201,625 | $62,500 | $139,125 | ≈ $556,500 |
| $1,209,750 (high-cost cap) | $302,437.50 | $62,500 | $239,937.50 | ≈ $959,750 |
- Confirm local limits: Use the FHFA loan limits map to verify your county’s cap; limits matter only when entitlement isn’t full or remains partially charged.
- Program fundamentals: Review the VA Home Loan overview for how guaranty works and why lenders look for 25% coverage on approvals.
Estimating a Down Payment with Partial Entitlement
Down payments with partial entitlement are formula-driven, not arbitrary. If the remaining guaranty is less than 25% of the target loan, you contribute cash equal to 25% of the shortfall. That keeps lender risk coverage whole while preserving core VA benefits on rate, costs, and underwriting flexibility.
| Home Price | Target Loan | Required Guaranty (25%) | Remaining Guaranty | Down Payment Needed |
|---|---|---|---|---|
| $520,000 | $520,000 | $130,000 | $139,125 | $0 (coverage met) |
| $575,000 | $575,000 | $143,750 | $139,125 | $4,625 |
| $650,000 | $650,000 | $162,500 | $139,125 | $23,375 |
- Bridge the gap: Small, targeted down payments often unlock approvals when remaining guaranty nearly meets the 25% benchmark but falls a few thousand dollars short of coverage.
- Model scenarios: Price-test three budgets: optimistic, realistic, and conservative. Pick the first tier where your down payment returns to zero based on the entitlement math involved.
- Pair with credits: Use seller credits for closing costs so your cash supports guaranty coverage rather than nonrecurring fees that do not improve approval probabilities meaningfully.
Common Situations Where Partial Entitlement Applies
Partial entitlement shows up when you keep a VA-financed home as a rental, carry a remaining balance after refinancing, or had a prior loss event. The playbook is aligning remaining guaranty, local limits, and underwriting so your next purchase remains competitive and financially resilient over time.
- Owning two homes: Keep the original VA-backed property and buy again if remaining guaranty supports the second purchase—common for frequent PCS moves among Military households.
- Active balance: If a prior VA loan is still outstanding, your available partial entitlement narrows $0-down options until restoration or payoff improves your guaranty position.
- After a loss: See what happens to entitlement after foreclosure to understand charges, repayment paths, and timelines for rebuilding full benefit again.
Second-Tier Entitlement (Buying Again Without Selling)
Many Veterans can purchase a new primary residence without selling the current VA-financed home by leveraging second-tier entitlement. It’s especially useful after PCS when selling quickly isn’t ideal. Success hinges on remaining guaranty, debt ratios, reserves, and realistic rent assumptions on the departing residence.
- PCS flexibility: Maintain housing continuity by owning near the new duty station while renting the prior home, provided numbers support the second purchase safely.
- Down-payment bridge: If guaranty falls short, a modest cash bridge fulfills the 25% requirement and often secures automated underwriting findings faster.
- Proof of stability: Document lease terms, reserves, and steady income to offset risk and meet lender overlays common in two-home ownership scenarios.
VA Bonus Entitlement (Competing at Higher Prices)
In costlier markets, VA bonus entitlement supplements the older basic tiers so qualified borrowers can credibly compete. With partial entitlement, bonus coverage can narrow cash needed or keep you in a $0-down tier when pricing pressure otherwise pushes you out.
- Competitive leverage: Bonus coverage extends buying power without defaulting to conventional financing, preserving VA-friendly terms when inventory and prices are challenging.
- Local caps still matter: When entitlement isn’t full, county limits influence ceilings—always confirm pricing against the FHFA map before finalizing your offer strategy.
- Cash efficiency: Use seller credits for costs and keep personal funds available for any small down payment that completes guaranty coverage and accelerates approvals.
Restoring VA Entitlement (Back to Full Strength)
Entitlement is reusable. Paying off and selling the prior VA-financed home restores benefit; repaying a VA claim also restores charged amounts. For practical steps and timing considerations, review restoring VA loan entitlement before you shop so approvals come together cleanly the first time.
- After payoff and sale: Closing the old loan and transferring title cleanly returns charged benefit, simplifying underwriting on your next purchase significantly.
- After a claim payout: Repay the VA’s covered loss to regain the charged amount; full restoration reopens $0-down pathways at stronger price bands.
- Lifetime flexibility: Restoration can occur multiple times; the benefit is durable, designed to support long careers and frequent relocations.
Funding Fee and True-Cost Planning
Most borrowers pay a one-time VA funding fee that supports program longevity; many with qualifying disabilities are exempt. Always work the fee into your scenarios so cash-to-close is accurate. Check official guidance on the VA funding fee page and confirm your use tier early.
- Budget realism: The fee can be financed, but modeling it upfront prevents surprises and avoids tight cash positions that jeopardize full loan approval late.
- Tier awareness: First-use and subsequent-use rates differ; match the correct tier to your scenario so estimates align with lender disclosures and closing figures.
- Exemption upside: Disability exemptions meaningfully lower costs; verify status early so pricing, quotes, and disclosures reflect true affordability.
Underwriting Reality with Partial Entitlement
Approvals hinge on the full picture: credit behavior, reserves, income stability, property conditions, and how close your guaranty is to the 25% mark. Think of entitlement like a shield: a larger shield reduces lender risk; when smaller, strong credit and reserves add protective layers that still win approvals.
- Payment streaks: Twelve clean months on all tradelines powerfully offset older derogatories and help automated findings when guaranty coverage is tight but improving.
- Reserves signal strength: Extra savings reduce risk and often tip marginal files into approval, especially in two-home or PCS transitions with overlapping expenses.
- DTI discipline: Lower revolving balances and stable income keep ratios healthy, supporting approvals even when your remaining guaranty forces a modest cash bridge.
Action Checklist: Putting Partial Entitlement to Work
A simple, disciplined sequence turns partial entitlement from a constraint into a plan. Confirm remaining guaranty, pressure-test prices, and decide whether a small cash bridge, second-tier usage, or restoration best fits your timeline and long-term financial goals for housing and stability.
- Pull your COE: Verify entitlement used and remaining benefit; confirm any charged amount and note documents needed to clear or restore it during the next transaction.
- Pressure-test pricing: Use the 25% rule to find the highest price that returns your down payment to zero; set a second tier with a small cash bridge if needed.
- Pick the route: Choose a path—remaining benefit with cash bridge, second-tier entitlement, or restoration—that best balances speed, cost, and long-term flexibility.
- Model true costs: Include taxes, insurance, reserves, and the VA funding fee so cash-to-close and monthly payments match your realistic budget.
- Document early: Gather income, assets, lease agreements, and DD-214s now; complete lender pre-underwriting to remove surprises before you write an offer.
Veteran Resources
- VA Home Loan Eligibility & COE — verify eligibility, order your COE, and confirm entitlement status for underwriting and approval planning.
- VA Debt Management — repayment options for charged entitlement after a claim payout, including offsets, compromises, and restoration timelines.
- HUD-Approved Housing Counselors — neutral budgeting, foreclosure-prevention help, and planning support for complex partial-entitlement scenarios.
- CFPB Guide to VA Loans — plain-language VA loan fundamentals and cost considerations beyond the lender quote and advertised rate.
- VA Form 26-1880 — request your Certificate of Eligibility directly to confirm entitlement usage and remaining benefit on your file.
Frequently Asked Questions
What is partial VA entitlement?
It’s the portion of your VA guaranty still available when another VA loan is active or a prior claim reduced benefit. The remaining amount shapes your $0-down ceiling and whether a calculated down payment is needed to bridge coverage.
How do I calculate remaining entitlement?
Start with 25% of your county’s conforming limit, subtract the guaranty already used, then multiply what’s left by four for a rough $0-down ceiling. Any shortfall to reach 25% coverage becomes the down payment required for approval.
Do county loan limits matter with partial entitlement?
Yes, when entitlement isn’t full. Limits influence how much guaranty is available toward your next loan. With full entitlement, VA does not impose a cap; lender guidelines and your profile determine maximum approval amounts.
Can I buy another home without selling my VA-financed property?
Often, yes. Second-tier entitlement can enable another purchase while you keep your existing VA-backed home. Approval depends on remaining benefit, credit strength, debt-to-income ratios, and underwriting overlays at your lender.
What is bonus entitlement and why does it matter?
Bonus entitlement supplements older basic tiers so competitive offers are possible in higher-cost markets. It’s especially useful with partial entitlement, helping bridge price gaps without defaulting to conventional financing prematurely.
When is a down payment required with partial entitlement?
When remaining guaranty is less than 25% of the target loan, you contribute cash equal to 25% of the excess amount. This aligns lender risk coverage and supports AUS findings or manual underwriting decisions.
How do I restore VA entitlement?
Sell and pay off the prior VA loan to restore benefit, or repay a VA claim if a loss occurred. Restoration reopens $0-down terms and simplifies underwriting on the next purchase transaction.
Does foreclosure end my VA eligibility?
No. It charges entitlement but doesn’t end eligibility. After seasoning, credit rebuilding, and any required repayment to the VA, many Veterans qualify again and can reuse the program successfully for future purchases.
Where can I confirm my current entitlement?
Order your Certificate of Eligibility and review entitlement usage on file. Lenders can also pull your COE electronically and explain how remaining guaranty will impact pricing, down payment needs, and approval strategy.
What fees should I plan for besides down payment?
Budget for closing costs, escrows, and the VA funding fee unless you’re exempt. Knowing totals early prevents surprises and helps structure offers with seller credits to keep cash-to-close predictable and manageable.
