Full vs Partial Entitlement
zero down power and the 25 percent rule
Full vs Partial VA Entitlement, 2026 Zero Down Rules
VA entitlement and limits
FHFA 2026 limits
VBA remaining entitlement
VA guaranty basics
Full entitlement usually means zero down is possible at any price point you qualify for, because VA can guaranty 25 percent of the loan amount. Partial entitlement means some of your guaranty is already tied up, so your zero down ceiling is driven by county conforming limits and the remaining entitlement shown on your COE.
Full entitlement, zero down is not capped
- Who has it: You have full entitlement when you never used VA, or your prior VA loan was paid off and entitlement was restored.
- No VA imposed loan limit: With full entitlement, VA does not cap the loan size, underwriting sets the max based on income and risk.
- Guaranty concept: VA can guaranty 25 percent of the loan amount, which is the backbone of zero down approvals.
- COE clue: COEs often show basic entitlement, but the key is whether any amount is charged and not restored.
Partial entitlement ties zero down to county limits
- When it happens: Active VA loans you keep, paid off VA loans where you still own the home, or prior VA losses can reduce usable entitlement.
- 2026 conforming limits: FHFA set the 2026 baseline at $832,750 and the high cost ceiling at $1,249,125 for one unit homes.
- Special areas: Alaska, Hawaii, Guam, and the U.S. Virgin Islands use higher statutory limits, with a ceiling of $1,873,675.
- Core formula: Remaining entitlement is commonly 25 percent of the county limit minus previously used entitlement not restored.
Down payment gap, the 25 percent shortfall rule
- Why it triggers: If the new loan needs more guaranty than you have left, the lender must bridge the gap to reach 25 percent coverage.
- Common approach: Many lenders use a simple rule of thumb, maximum zero down loan is about four times remaining entitlement.
- How much down: Down payment is often 25 percent of the difference between the desired loan amount and your zero down limit.
- Example logic: If you are short $50,000 in coverage, you often bring $12,500 down to satisfy the 25 percent requirement.
COE, charged entitlement, and next steps
- Pull the COE first: The COE shows what is charged and whether entitlement is available for another purchase.
- Restoration options: Selling and paying off the prior VA loan usually restores entitlement, and substitution can work when an eligible Veteran assumes.
- Do not guess limits: Use the FHFA county limit map and your COE charged amount to estimate remaining entitlement before offers.
- Underwriting still rules: Even with full entitlement, approval depends on income, credit, residual income, and the property meeting VA standards.
FAQs
How do I know if I have full or partial entitlement?
Check your Certificate of Eligibility. If it shows entitlement charged and not restored, you likely have partial entitlement. If prior VA use was paid off and restored, or you never used VA, you usually have full entitlement.
Do loan limits apply when I have full entitlement?
How is the zero down limit calculated with partial entitlement?
Full entitlement and partial entitlement are not just VA jargon, they decide whether your offer is truly zero down or whether you must bring cash to cover a guaranty gap. In 2026, this matters more because higher county limits can expand partial entitlement buying power, yet only if you run the math before you tour homes. Use the sections below to establish the firm baseline, calculate your real ceiling, and avoid last minute down payment surprises.
Full vs Partial Entitlement, What Is the Difference?
Full entitlement usually means no VA imposed loan limit for zero down, while partial entitlement ties zero down power to remaining guaranty and county limits. That distinction controls whether you can shop any price range your lender approves or whether you must run a down payment calculation before you write offers, especially when you already have a VA loan.
| Feature | Full Entitlement | Partial Entitlement |
|---|---|---|
| Zero Down Buying Power | Not capped by county limits, still capped by appraisal and lender approval | Capped by remaining guaranty and county conforming limits, down payment may be required |
| Most Common Trigger | First time VA use or prior VA loan sold and paid off | Active VA loan kept, prior VA loss, or prior VA payoff with property retained |
| What COE Usually Shows | No entitlement charged that limits new use | Entitlement charged or prior use that reduces remaining guaranty |
| Where Deals Break | Low appraisal, weak affordability, or lender overlays | Down payment surprise, wrong county limit used, or unmodeled two payment budget |
- Full entitlement outcome: You can often keep the down payment at zero, but the lender still underwrites income and debts and the appraisal still caps value support and the base loan amount.
- Partial entitlement outcome: Your zero down ceiling is a math result based on remaining guaranty and your county limit, so a higher price can trigger a required down payment even when you qualify.
- Practical decision point: The key choice is whether to sell or refinance a prior VA home to restore entitlement, or keep it and plan for partial entitlement limits and overlap payment risk.
- Pull your COE before you write offers and confirm whether entitlement is charged, because entitlement status determines whether your shopping ceiling is an affordability issue or a guaranty math issue.
- If entitlement is partial, have the lender calculate your zero down cap for your target county, then shop below that number so you do not get forced into a rushed cash decision.
- Lock your reserve floor before you negotiate, because entitlement flexibility is valuable only when you still have cash for repairs, escrow increases, and moving costs after closing.
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.
- 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 Full Entitlement and Why Does It Remove VA Loan Limits?
You have full VA entitlement when no VA loan guaranty is currently charged to you, which typically means you can buy with zero down at any price you qualify for. Lenders still cap borrowing based on income, debts, and appraisal value, but you do not hit county loan limit based down payment math unless entitlement is partially used.
- How you usually get full entitlement: It is common for first time VA users, borrowers who sold and paid off a prior VA loan, and borrowers who repaid any prior VA loss that left entitlement charged.
- What no loan limit really means: The VA is not limiting your loan size, but your lender still tests affordability, residual cash flow, and property value support, so unlimited does not mean automatic approval.
- How the guaranty scales: For larger loans, VA guaranty is designed to support a 25 percent coverage concept, which is why lenders can often approve zero down purchases when entitlement is full and underwriting is strong.
- Confirm full entitlement on your COE early, then ask the lender to underwrite to a payment you can carry with margin, not the maximum payment the algorithm will approve.
- Price your offers to likely appraisal support, because even with full entitlement, the base loan amount is still capped by the supported value and a low appraisal can force renegotiation or cash.
- Keep reserves intact after closing, because full entitlement is most powerful when you can handle taxes, insurance, repairs, and PCS costs without creating new consumer debt.
VA Home Loan Entitlement and Loan Limits Guidance
What Creates Partial Entitlement and a Down Payment Trigger?
Partial entitlement happens when some of your VA guaranty remains tied to another property or a prior loss, reducing how much you can borrow with zero down. This is common if you kept a VA financed home during a move, paid off a VA loan but still own the property, or had a foreclosure or short sale that left entitlement charged.
- Keeping a prior VA home: If you buy again while the first VA loan is still active, part of your guaranty remains allocated, which can lower your zero down ceiling and add two payment qualification pressure.
- Prior VA loss or charged entitlement: If a foreclosure or compromise sale caused a loss to the VA, the used entitlement can remain charged until repaid or otherwise cleared, which reduces remaining guaranty for the next purchase.
- Payoff while retaining the property: Paying off a VA loan but keeping the home can still require restoration paperwork, so entitlement may not automatically reset the way most borrowers assume it does.
- Identify which scenario applies and write it down in one sentence, because your lender will underwrite differently for a second purchase, a charged entitlement file, or a payoff with retained ownership.
- Ask the lender to run a conservative second home scenario that includes the old payment and conservative rental income, because optimistic rent assumptions are a common reason partial entitlement plans fail.
- If a down payment is likely, decide whether you prefer cash down, restoring entitlement first, or adjusting price, because a clear decision early prevents last week renegotiation chaos.
How Do You Calculate Remaining Entitlement and Your Zero Down Cap?
You calculate remaining entitlement by taking 25 percent of your county conforming limit and subtracting any entitlement already used, then multiply what remains by four for a zero down cap. If your target price exceeds that cap, lenders usually require a down payment equal to 25 percent of the gap, not 25 percent of the full purchase price, which can be far smaller.
- Use the correct county limit first: The county one unit limit is the anchor for most purchase scenarios, and using the wrong county or the wrong unit count can produce a false zero down cap that collapses in underwriting.
- Understand the four times logic: Multiplying remaining entitlement by four is a shortcut many lenders use to estimate a 25 percent guaranty position, so it is a planning tool that should be verified with your lender’s worksheet.
- Down payment is usually on the gap: When you exceed the cap, the down payment is commonly 25 percent of the amount above your zero down ceiling, which is why the cash requirement can be smaller than most buyers expect.
- Find your county conforming limit and calculate 25 percent of that number, then subtract the entitlement charged on your COE to estimate remaining entitlement the lender can apply to a new purchase.
- Multiply remaining entitlement by four to estimate your maximum zero down loan amount, then compare it to your target purchase price to see whether a down payment is triggered.
- If the price exceeds the cap, subtract the cap from the price and multiply the difference by 25 percent, then check whether paying that amount still leaves you with reserves for repairs and escrow changes.
Example for situational awareness: if your zero down cap is 450,000 and you want to buy at 500,000, the gap is 50,000 and the typical down payment is 12,500. That is manageable for some buyers, but only if it does not drain reserves or force new debt.
VBA Circular 26 25 10 Remaining Entitlement Calculation Guidance
How Do 2026 FHFA Conforming Loan Limits Change Partial Entitlement Math?
They set the county limit number that drives your remaining entitlement calculation, so higher 2026 limits can raise your zero down ceiling when entitlement is partial. For most counties the one unit baseline is 832,750 and the high cost ceiling is 1,249,125, with higher statutory caps for certain areas, which changes the 25 percent guaranty math lenders use.
- Baseline versus high cost matters: A higher county limit increases 25 percent of the limit, which increases remaining entitlement calculations and can reduce or eliminate a down payment requirement for some second time buyers.
- Special areas use higher statutory caps: Alaska, Hawaii, Guam, and the U.S. Virgin Islands can have higher ceilings, so active duty buyers stationed there should model entitlement using the correct geography, not a mainland assumption.
- Limits do not override affordability: Higher limits can help guaranty math, but they do not increase income, so the real ceiling is still your payment comfort, residual cash flow, and lender underwriting standards.
- Identify the county and unit count for the property you want, then pull the conforming limit for that exact location, because entitlement math is only as accurate as the county limit you feed into it.
- Run two scenarios, one at your target price and one slightly below it, because a small price reduction can eliminate the down payment trigger and keep reserves stronger without sacrificing the home you need.
- Ask your lender to confirm the zero down ceiling and any overlays for your scenario, because some lenders apply tighter thresholds or require more reserves even when VA rules allow higher leverage.
FHFA Conforming Loan Limit Values for 2026
How Do You Read Your COE to Confirm Full or Partial Entitlement?
Your COE shows whether entitlement is charged and whether you have full entitlement, which determines whether you can go zero down without county cap math. Reading it early prevents the classic surprise where a buyer is preapproved for a price but later learns a down payment is required due to a prior VA loan still tied to the record.
- Look for entitlement charged language: A charged amount indicates some guaranty is already allocated, which is the trigger for partial entitlement math and possible down payment requirements on a second purchase.
- Do not misread the 36,000 line: Many COEs show basic entitlement of 36,000, but that is not a borrowing cap. It is a guaranty reference point, and additional guaranty can exist for larger loans.
- Refresh after payoff events: If you sold, refinanced, or completed an assumption, request an updated COE, because your next lender will rely on what the COE currently shows, not on what you believe should be true.
- Pull the COE as soon as you consider buying, then store it in your loan folder, because it is the fastest way to confirm entitlement status and avoid a late down payment surprise.
- Ask your lender to translate the COE into a maximum zero down price for your target county, because lenders apply the COE data to the county limit math and can show you the real shopping ceiling.
- After any sale, payoff, or assumption event, request a refreshed COE before you shop again, because stale COEs are a common reason buyers lose time and miss contract deadlines.
Apply for a VA Home Loan Certificate of Eligibility
How Do You Restore Entitlement After Selling, Refinancing, or Assumption?
Entitlement is typically restored when the VA loan is paid in full and disposed, or when another eligible Veteran assumes the loan and substitutes their entitlement for yours. The fastest path is usually sale and payoff, but one time restoration and substitution can matter for landlords and movers who want to keep the property while regaining VA buying power.
- Sale and payoff is the clean reset: Selling the home and paying the VA loan in full usually frees the entitlement tied to that loan, which makes the next purchase simpler and often restores full entitlement status.
- One time restoration can help landlords: If you pay off the VA loan but keep the home, VA can allow a one time entitlement restoration, but you must complete the paperwork and confirm the COE reflects the change.
- Substitution during assumption is powerful: If another eligible Veteran assumes the loan and substitutes entitlement, your entitlement can be freed without waiting for payoff, but this requires a compliant assumption and lender approval.
- Choose the restoration path that matches your real plan, sell, keep, or allow an eligible Veteran to assume, because each path has different timing and documentation requirements.
- Complete the payoff, disposal, or substitution event and keep proof, because entitlement does not change based on intent. It changes when the recorded and documented event is complete.
- Request an updated COE and rerun your purchase scenario before you write offers, because your next contract should be based on current entitlement status, not on a best case assumption.
What Entitlement Mistakes Cause Last Minute Down Payments or Denials?
Most entitlement mistakes come from waiting too long to run COE and county limit math, which leads to surprise down payments, rushed concessions, or canceled contracts. You can avoid nearly all of them by treating entitlement like a pre offer checklist item, modeling worst case appraisal outcomes, and keeping reserves intact so you are not forced into bad last week decisions.
- Assuming full entitlement without proof: Buyers skip the COE and believe they are full entitlement, then discover entitlement charged after they are under contract, which forces a down payment decision or a price renegotiation under deadline pressure.
- Shopping above the true zero down cap: Partial entitlement buyers often shop at the preapproval maximum instead of the guaranty maximum, then the lender recalculates and requires cash or cancels because the deal cannot meet coverage targets.
- Letting a non eligible assumption trap entitlement: If a non Veteran assumes a VA loan without substitution, entitlement can remain tied for years, which can quietly limit your future VA purchases even after you move away.
- Make entitlement verification step one, COE pulled, county identified, and zero down ceiling calculated, because this prevents almost every down payment surprise that happens after contract acceptance.
- Keep an appraisal gap plan and a reserve floor, because even correct entitlement math cannot protect you from low value outcomes or escrow changes that tighten cash flow late in underwriting.
- Choose lenders who run the entitlement worksheet early and explain it clearly, because lenders who delay this work push risk into the contract period when your options are narrower and more expensive.
The Bottom Line
Full entitlement and partial entitlement decide whether your VA zero down plan is simple or math heavy. Full entitlement usually removes county loan limit based down payment triggers, but you still must qualify on income and the home must appraise at value.
Partial entitlement is not a dead end, but it demands discipline: pull the COE early, use the correct county limit, calculate the zero down cap, and plan for a down payment equal to 25 percent of any gap above that cap. If you are keeping a prior VA home, treat the two payment budget and conservative rental assumptions as the real risk, not the headline purchase price.
When you want maximum flexibility, restoring entitlement through sale, payoff, or substitution can be cleaner than forcing a marginal second purchase. Run the numbers first, then write offers you can close.
Frequently Asked Questions
How do I know if I have full entitlement?
Pull your Certificate of Eligibility and look for whether entitlement is charged. If no prior use is tied to an active loan and the COE indicates full entitlement, you can usually buy with zero down subject to lender approval and appraisal.
Can I have full entitlement if I used a VA loan before?
Yes. If you sold the home and the VA loan was paid in full, entitlement can often be restored. You need an updated COE that reflects the payoff and disposal before you assume your next purchase will be treated as full entitlement.
What does entitlement charged mean on my COE?
Entitlement charged means some of your VA guaranty is already allocated to a prior or current VA loan. That reduces remaining entitlement and can trigger county limit based calculations and a down payment requirement on a second purchase.
Does partial entitlement always mean I need a down payment?
No. Many partial entitlement buyers still buy with zero down if the price fits within the remaining guaranty ceiling. A down payment is usually required only when your target loan amount exceeds what remaining entitlement can support.
How is the zero down cap calculated with partial entitlement?
Lenders typically calculate remaining entitlement using 25 percent of the county conforming limit minus entitlement already used, then estimate a zero down ceiling by multiplying remaining entitlement by four. If you exceed it, down payment is often 25 percent of the gap.
Do FHFA loan limits cap VA loans for full entitlement borrowers?
No. With full entitlement, VA does not impose a county loan limit, but lenders still cap borrowing based on income and appraisal. FHFA limits mainly matter for partial entitlement because they feed the guaranty math that determines zero down capacity.
Can I keep my old VA home and buy another with a VA loan?
Sometimes. You may be able to buy again using remaining entitlement, but the lender must qualify you for both payments and will often use conservative rental income assumptions. Partial entitlement math can also create a down payment requirement above certain prices.
How do I restore entitlement without selling my home?
You may be able to restore entitlement through a one time restoration after paying off the VA loan while keeping the property. This requires documentation and an updated COE. Do not assume payoff alone updates entitlement without VA record refresh.
What happens to entitlement after a VA foreclosure?
If the foreclosure caused a loss to the VA, entitlement can remain charged until the loss is repaid or otherwise cleared. You may still have remaining entitlement to buy again, but your zero down ceiling can be lower and may require cash above a threshold.
What is the fastest way to avoid an entitlement surprise during escrow?
Pull the COE before you make offers and have the lender run remaining entitlement math for your target county and price range. Shop below the calculated zero down ceiling and keep reserves strong so appraisal or repair issues do not force last minute cash decisions.
