this veteran’s basic entitlement is $36 000*

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Veterans who are eligible for a VA loan have an entitlement, which is basically a dollar amount the VA promises to repay back to a lender in the event you default on your mortgage. Check out our detailed look at the VA loan process here. The basic, or primary, entitlement is $36,000.

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The $36,000 in entitlement on your certificate of eligibility represents the basic entitlement that all veterans have, in addition the $36,000 in basic entitlement there is another $68,250 in 2nd tier entitlement. lenders require the veteran to have entitlement representing at least 25% of the.

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It’s important for new borrowers to understand that for the basic entitlement of VA home loans, $36,000 is the amount of money the VA promises to the lender if the VA borrower defaults on the VA mortgage loan. This amount, or 25% of the VA county loan limit as stated above, is not the amount of the loan itself.

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Veteran has full entitlement available and is purchasing a home for $300,000 where the county loan limit is $484,350. $484,350 X 25% = $121,087.50 Maximum Guaranty and Available Entitlement . $300,000 X 25% = $75,000 . Since VA’s guaranty is limited to the lesser of 25% of the county loan limit or 25% of the