What Is a VA Loan Entitlement?

A Veterans Affair, or VA, loan entitlement is a basic entitlement of $36,000 that is available to eligible veterans seeking a VA home loan; most lenders will loan up to four times the veteran's entitlement on a home without requiring the veteran to make a down payment. VA loans are still subject to credit and income qualifications and the property being purchased must appraise for the price being asked for it.

The VA does not set a limit on how much a qualifying veteran can borrow when looking to finance a home. However, there are limits of the amount of assumed liability that the VA is willing to take on for each veteran. This usually affects the amount of money that any lending institution is willing to approve for a particular veteran.

The loan limits for VA home loans can vary by location, due in part to the fact that homes are valued based at least to some extent on where they are located. For most VA borrowers, the loan limit is $417,000 without a down payment, although the amount in some areas where the cost of living is greater may be as much as $625,500. Most VA homes are purchased with no money down. The loans are backed by the government and enjoy a very low foreclosure rate.