What Are VA Entitlement Codes?


Quick Answer

An entitlement code, found in the upper left corner of a veteran's certificate of eligibility, is proof of a veteran's eligibility to both purchase a home with a Veterans Affairs loan and receive financial aid, states Military VA Loan. The code tells a veteran how he earned the entitlement.

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Full Answer

In the event that a veteran eligible for a VA loan defaults on his mortgage, an entitlement is the dollar amount the VA pays to the lender, explains Veterans United Network. Basic entitlement is $36,000, and the VA agrees to pay a quarter of the home loan. The maximum loan amount is $36,000 times four, or $144,000. However, in areas where the average cost of a home exceeds this amount, a veteran is eligible for a secondary entitlement that covers homes up to $417,000.

Any veteran that meets the minimum service and discharge requirements is eligible for a VA loan, explains Military VA Loan. The code corresponds to the era in which the veteran served, such as "Korean War" or "Post-Vietnam War."

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