Entitlement and Limits
full entitlement, partial math, and 2026 caps
VA Entitlement in 2026, Full vs Partial Limit Rules
The VA entitlement and loan limits
The VA loan limits guidance
FHFA 2026 conforming limits
The VA 2026 compensation rates
The VA entitlement is the guaranty behind your VA loan, not cash paid to you. In 2026, full entitlement means there is no program loan limit for zero down, you can borrow what you qualify for and what the home appraises for. Partial entitlement means some guaranty is tied up, so your zero down ceiling is based on county limits and your remaining entitlement shown on your COE.
Full entitlement means no program loan limit
- When you have it: Full entitlement is common if you never used The VA loan, or you sold and paid off the prior The VA loan and restored entitlement.
- Zero down is not capped: With full entitlement, The VA does not impose a county loan limit for zero down financing, lender approval and value do.
- Guaranty concept: The VA guaranty is built around a twenty five percent coverage concept on larger loans, which supports zero down pricing.
- COE is the proof: The Certificate of Eligibility shows whether entitlement is fully available or whether any amount is still charged.
Partial entitlement uses county limits and math
- When it happens: Partial entitlement is common when you keep an active The VA loan, kept a paid off The VA home, or had a prior loss not repaid.
- Why limits still matter: County conforming limits are used to determine the maximum guaranty available when entitlement is not fully restored.
- Rule of thumb: Many lenders estimate a zero down ceiling as remaining entitlement times four, because pooling often expects twenty five percent coverage.
- Down payment trigger: If your price exceeds the zero down ceiling, the down payment is often twenty five percent of the difference, if the rest of the file qualifies.
2026 conforming limits used for partial entitlement
- Baseline most counties: FHFA set the 2026 baseline one unit limit at $832,750 for most counties.
- High cost ceiling: The 2026 high cost ceiling is $1,249,125 for one unit properties in designated high cost counties.
- Special statutory areas: Alaska, Hawaii, Guam, and the U.S. Virgin Islands use higher statutory limits, with a ceiling of $1,873,675.
- Check your county: Your exact number depends on the county where the home is located, so verify it before you estimate zero down capacity.
Key 2026 costs and income adjustments
- Funding fee tiers: The VA funding fee varies by down payment and first use versus subsequent use, and many disabled Veterans are exempt.
- First use snapshot: A common first use funding fee tier at zero down is 2.15 percent, while subsequent use can be higher, based on The VA schedule.
- COLA effect: The VA disability compensation rates effective December 1, 2025 reflect a 2.8 percent COLA, which can raise qualifying income for some borrowers.
- Start with COE: Pull your COE early so your entitlement status and any funding fee exemption are correct before you shop lenders.
FAQs
Do The VA loan limits apply in 2026?
It depends on your entitlement. With full entitlement, there is no program loan limit for zero down. With partial entitlement, county conforming limits are used to calculate the maximum guaranty and your zero down ceiling.
What is the 2026 baseline limit used for partial entitlement?
For most counties, FHFA set the 2026 baseline one unit conforming limit at $832,750. High cost counties can go to $1,249,125, and special statutory areas can reach $1,873,675. Always verify your county before estimating.
How do I confirm if I have full or partial entitlement?
VA loan entitlement is the engine behind the VA home loan guaranty, and it is what makes zero down financing possible for many qualified Veterans. For 2026, the big operational reality is simple: if you have full entitlement, the VA is not imposing a county loan limit cap on what you can borrow, but your lender and the appraisal still control the outcome. If you have partial entitlement tied up in another VA loan, county loan limits and remaining entitlement math can determine whether you need a down payment. The clean approach is to confirm entitlement status first, then size your price range to what the guaranty can support.
What is VA loan entitlement, and why does it matter in 2026?
VA loan entitlement is the amount of guaranty the VA can extend to your lender, and it directly affects your ability to buy with zero down. In 2026, the key is whether you have full entitlement or partial entitlement, because that determines whether county loan limit math matters for zero down scenarios.
- Entitlement is not your borrowing limit, it is the guaranty backing your loan, and lenders generally want guaranty coverage equal to 25 percent of the loan amount.
- Full entitlement usually supports zero down at many price points, but lender approval and appraisal value still decide the maximum loan you can actually close.
- Partial entitlement can reduce zero down buying power, because part of your guaranty is already allocated to another VA loan or an unresolved prior entitlement charge.
- Start by pulling your Certificate of Eligibility and locate the basic entitlement and prior entitlement charged sections, because those fields drive the rest of the calculation.
- Identify whether you have an active VA loan, a retained property with a VA loan, or a prior loss, since each can reduce available entitlement.
- Decide whether your next purchase will be a replacement primary residence or an additional residence, because occupancy and timing affect lender approvals.
Entitlement strategy is about preventing surprise down payment demands. If you confirm your status up front, you can shop within a firm baseline and avoid contract failures.
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.
Do you have full entitlement or partial entitlement, and how can you tell?
Full entitlement means you have no VA guaranty tied up in another property, so county loan limits do not cap the VA program side of your loan size. Partial entitlement means some guaranty is already used, so your zero down buying power can be limited by county loan limits and remaining entitlement. Your COE is the first checkpoint, and it is where most clean decisions begin, because it shows entitlement indicators that lenders underwrite against.
| Status | What it usually means | Zero down impact | Most common trigger | Best next action |
|---|---|---|---|---|
| Full entitlement | No entitlement currently charged to another VA loan | County limits do not cap VA program size, lender still qualifies you | First use, or prior VA loan paid off and entitlement restored | Shop based on income, credit, and appraisal reality, not county limit headlines |
| Partial entitlement | Some entitlement is charged to an active or retained VA loan | Zero down buying power can be capped by remaining entitlement math | Keeping the old home with a VA loan, or a prior entitlement charge not restored | Calculate remaining entitlement before you pick a target price range |
| Restoration needed | Loan is paid, but entitlement restoration is not recorded yet | May look like partial entitlement until the restoration is processed | Recent sale or refinance payoff, paperwork not fully reflected | Request restoration documentation early and confirm COE updates before offers |
- Full entitlement is a status, not a guarantee of approval, because lenders still evaluate income stability, debt load, and overall risk before they issue final approval.
- Partial entitlement can still support a purchase, but the file requires math discipline to prevent a last minute down payment requirement after underwriting review.
- COE language can be confusing, so align your COE fields with your real property situation, including any retained homes, rentals, or prior VA loan payoffs.
- Ask whether you currently have a VA loan on any property, because a simple yes can shift you from full entitlement planning to partial entitlement planning.
- Confirm whether the prior VA loan was paid off and the home was sold, because payoff and sale commonly allow restoration, but timing and paperwork matter.
- If you retained the property, confirm whether it is still financed with a VA loan, because that is the most common reason entitlement remains partially used.
The quickest wins come from early truth telling. If you are keeping the old house, treat this as partial entitlement planning until the numbers prove otherwise.
What are the 2026 loan limits, and when do they actually affect you?
For 2026, VA loan limits matter mainly when you have partial entitlement, because full entitlement does not impose a county cap on VA loan size. The baseline one unit conforming limit is 832,750 in most counties, with a ceiling of 1,249,125 in high cost areas, and special statutory ceilings can reach 1,873,675 in certain territories. These figures come from the FHFA conforming loan limit announcement for 2026 on FHFA.gov.
| Area type | 2026 one unit conforming limit | Why it matters for partial entitlement | Practical takeaway |
|---|---|---|---|
| Baseline counties | 832,750 | Often sets the county limit reference used in remaining entitlement calculations | If your target price is above this, expect down payment math when entitlement is already used |
| High cost counties | Up to 1,249,125 | Raises the ceiling used for entitlement calculations in eligible counties | Partial entitlement can stretch further, but lender qualifying and appraisal still control the result |
| Special statutory areas | Up to 1,873,675 | Creates higher ceilings in certain areas, including Alaska and Hawaii | Higher limits reduce down payment pressure, but total approval still depends on underwriting strength |
- Loan limits are not a VA loan size cap for full entitlement, they are a reference point that becomes important when your entitlement is partially used.
- County classification drives which limit applies, so the property location, not your mailing address, determines the limit used in the entitlement calculation.
- Even when a county limit is high, the appraisal can still reduce the maximum loan amount, because the VA loan amount is capped by value support.
- Confirm whether you are operating as full entitlement or partial entitlement, because that single fact determines whether county limit math belongs in your plan.
- Identify the property county and match it to the 2026 one unit limit category, because lenders and COE calculations reference that county value.
- Decide whether your target price is within the county reference range, because going above it with partial entitlement usually triggers a down payment requirement.
Do not shop by headlines. Shop by your entitlement status, the property county, and the lender’s 25 percent coverage requirement, because those variables actually control the zero down outcome.
How do you calculate remaining entitlement and zero down buying power with an existing VA loan?
If you have partial entitlement, your remaining bonus entitlement is tied to the county loan limit and the entitlement already charged on your COE. The practical idea is that lenders often want guaranty coverage equal to 25 percent of the loan amount, and your remaining entitlement helps satisfy that requirement. Once you calculate remaining entitlement, you can estimate a maximum zero down loan amount by scaling the guaranty back into a total loan size.
- The cleanest approach is to treat your COE as the source document, because it shows entitlement charged, which is the number that drives remaining entitlement math.
- County loan limits are used as a reference even for multiunit properties in the entitlement math context, so focus on the one unit county figure for calculation.
- When you see a remaining entitlement number, remember it represents guaranty dollars, and lenders translate it into a maximum loan amount using coverage ratios.
- Locate the entitlement charged amount on your COE, then treat it as the portion of guaranty already allocated to a prior VA loan.
- Multiply the relevant county one unit loan limit by 0.25 to translate the limit into a 25 percent guaranty reference amount.
- Subtract entitlement charged from the 25 percent reference amount to estimate remaining bonus entitlement, then multiply that remainder by 4 to estimate zero down buying power.
As a working example, if the county one unit limit is 832,750, the 25 percent reference is 208,187.50. If your COE shows 50,000 entitlement charged, remaining bonus entitlement is about 158,187.50, and multiplying by 4 suggests roughly 632,750 of zero down buying power, before lender overlays and appraisal limits.
When do you need a down payment with partial entitlement, and how is it estimated?
You may need a down payment when your remaining entitlement is not enough to satisfy the lender’s 25 percent coverage expectation for the total loan amount. The down payment is not a punishment, it is a coverage gap plug that helps bring total guaranty plus down payment back to a comfortable risk posture for the lender. This is why the same Veteran can be told zero down by one lender and a down payment by another, depending on policy and risk tolerance.
- A down payment requirement is most common when you are keeping a prior VA loan, because that loan ties up guaranty and reduces how much the next loan can be covered.
- The lender is usually looking for a combined coverage outcome, meaning entitlement plus down payment equals roughly 25 percent of the total loan amount.
- If you can choose between reducing price, increasing down payment, or restoring entitlement, the most stable solution is the one that reduces coverage stress early.
- Estimate how much guaranty you have left, then translate that guaranty into a maximum loan amount by applying the coverage ratio your lender expects.
- Compare your target purchase price to the estimated maximum zero down loan amount, because the difference is the starting point for down payment planning.
- Assume the down payment may be close to 25 percent of the gap between price and maximum zero down amount, then confirm the exact number with your lender’s underwriting guidance.
The mission is predictability. If you calculate early and build a price range that fits your remaining entitlement, you avoid discovering the down payment requirement after you are already under contract.
How do you restore entitlement after selling, refinancing, or keeping a property?
Entitlement restoration is what moves you back toward full entitlement status after a VA loan is paid off, typically through sale or a payoff refinance. If you keep the home and retain the VA loan, entitlement usually stays partially used, which changes the math for the next purchase. Many delays come from assuming restoration is automatic and immediate, when it can require proof and processing time.
- Restoration is most straightforward when the prior VA loan is paid in full and the property is sold, because that combination typically clears the prior entitlement charge.
- If you refinance a VA loan into another VA loan, your entitlement may remain tied up, since the guaranty is still supporting a VA backed obligation.
- If you want two properties, treat the plan as partial entitlement by default, because entitlement tied to the first home will usually reduce zero down range on the second.
- Confirm whether the prior loan is truly paid off, and whether there is any remaining VA backed lien on the property, because entitlement is tied to guaranty exposure.
- Collect payoff documentation or closing evidence from the sale, then ensure your lender can validate the payoff and request updated entitlement status.
- Recheck your COE before you write offers, because the updated entitlement position is what determines whether your next deal needs down payment support.
Restoration is a paperwork and timing issue more than a policy mystery. If you are close to a move, prioritize entitlement confirmation early so you do not waste time shopping outside your real buying power.
How do funding fees and exemptions change your total cash to close?
The VA funding fee can materially change your total cost and monthly payment, because it is often financed into the loan amount, and the rate depends on use type and down payment. For 2026, VA publishes funding fee rates and exemptions, including the commonly cited 2.15 percent first use and 3.3 percent after first use scenarios, on its VA funding fee and closing costs page. Your buying power plan should include whether you will pay, finance, or be exempt.
- Financing the funding fee increases the total loan amount, which can matter when you are close to lender qualifying limits or trying to stay within an appraisal supported value.
- Funding fee exemptions can significantly improve affordability, because removing the fee lowers the financed balance and reduces long term interest cost.
- The fee interacts with entitlement planning when you are stretching price, because a higher financed balance can push a partial entitlement file into coverage stress.
- Confirm whether you are exempt, because that single fact can change both cash to close strategy and the financed loan amount needed to complete the purchase.
- Decide whether you will finance the fee or pay it, because financing helps preserve cash but increases the principal and payment burden.
- Run the numbers using the actual purchase price and expected fee tier, then recheck lender approval comfort before you lock your final offer price.
Funding fee planning is where many buyers lose discipline. If you treat it as part of the purchase price decision, rather than an afterthought, you keep your payment baseline stable and your approval probability higher.
How do second VA loans and higher priced purchases interact with entitlement?
Second VA loans are possible, but they push you into partial entitlement planning in most real scenarios, because some guaranty is tied to the first home. Higher price points amplify small entitlement gaps into real down payment demands, especially in baseline counties. The cleanest strategy is to decide whether you are truly keeping the first home long term, then size the second purchase to what the remaining entitlement can support with lender comfort.
- Keeping a prior VA loan often reduces flexibility on the next purchase, because the entitlement tied to that loan reduces the guaranty available for the next loan.
- Higher purchase prices increase coverage requirements, so remaining entitlement that felt adequate at mid range prices can become inadequate at premium price points.
- Multiunit properties can still be financed as long as you occupy the home as your primary residence, but lender underwriting typically becomes more conservative as complexity increases.
- Confirm whether the first home will remain financed with a VA loan at closing of the second home, because that determines whether you are planning as partial entitlement.
- Calculate remaining entitlement and estimate zero down buying power, then set a target price ceiling that leaves buffer for appraisal variability and lender overlays.
- Decide whether to bring cash, reduce purchase price, or restructure timing by selling first, because those are the three levers that reliably resolve entitlement shortfalls.
Second VA loan planning is about avoiding mission creep. If your plan requires perfect appraisal, perfect underwriting, and zero surprises, it is not a robust plan. Build buffer, confirm entitlement, and keep the price range realistic.
The Bottom Line
In 2026, VA entitlement is most powerful when you have full entitlement, because county loan limits do not cap your VA program loan size, and approval is driven by lender qualifying and appraisal support. If you have partial entitlement, loan limits and remaining entitlement math can determine your zero down buying power and whether you need a down payment to satisfy 25 percent coverage expectations. Confirm your COE early, calculate remaining entitlement before you shop, and treat funding fee planning as part of the affordability baseline. A disciplined entitlement check prevents last minute down payment surprises and protects your offer strategy.
Resources Used
Do VA loans have loan limits?
With full entitlement, VA program rules do not cap your loan amount by county limits, but underwriting and the appraisal still set the ceiling. With partial entitlement, county limits can affect zero down capacity and may trigger a required down payment.
What does full entitlement mean on a COE?
Full entitlement generally means none of your VA guaranty is tied to another active VA loan or unresolved claim. Your COE indicators often reflect that status. Even with full entitlement, you still must qualify based on income, debts, credit, and property value.
How do I calculate my remaining VA entitlement?
Use your COE to identify entitlement already used, then compare it to the guaranty reference tied to the local one unit conforming limit. The remaining guaranty helps estimate your zero down ceiling, though lenders convert it using their own entitlement math.
How much down payment is required with partial entitlement?
The down payment depends on the guaranty shortfall for the total loan amount. Many lenders want entitlement plus cash to equal about twenty five percent coverage. A common estimate is twenty five percent of the amount above your zero down capacity.
Can I have two VA loans at the same time?
Yes, some Veterans can carry two VA loans, but the first loan usually creates partial entitlement for the second purchase. That can reduce zero down buying power. Lenders also scrutinize occupancy intent, affordability with both payments, and reserves.
How do I restore VA entitlement after selling a home?
After the prior VA loan is paid off, you typically request an updated COE so the VA record reflects restoration. Do not assume it updates automatically. Confirm the new COE before making offers, because timing and missing payoff documentation can delay your approval.
Do loan limits apply to VA refinance loans?
Loan limits mainly affect purchase planning when entitlement is partial. Refinance approvals still hinge on the loan type, remaining entitlement if relevant, and lender rules. In practice, the appraisal, payoff demand, payment history, and underwriting determine what closes.
What is bonus entitlement, and why does it matter?
Bonus entitlement is additional guaranty beyond basic entitlement that supports larger loan amounts. It matters most with partial entitlement, because remaining bonus entitlement is tied to local conforming limits and what you already used. That calculation can cap zero down capacity.
What is the VA funding fee, and can it be waived?
The VA funding fee is a one time charge that supports the program and is often financed into the loan. Some Veterans are exempt based on benefit status. Whether you pay it in cash or finance it affects payment, cash to close, and total cost.
Does a high cost county increase my VA buying power?
It can when you have partial entitlement. Higher local conforming limits raise the guaranty reference used to estimate remaining entitlement, which can increase your zero down ceiling or reduce the required down payment. You still must qualify and the appraisal must support value.
