If you're a borrower considering a VA loan, understanding your entitlement is crucial. Simplify it all with this quick guide!

VA loans are a great option for eligible service members, veterans, and their families looking to secure a mortgage. One of the key aspects of your eligibility is your VA loan entitlement. Simply put, entitlement is the amount the VA guarantees for each qualified borrower. It's important to have a clear understanding of your entitlement, as it can help you determine how much you can borrow and what loan options are available to you.

Your basic entitlement for a VA loan is $36,000, but this doesn't necessarily mean that's the maximum amount you can borrow. In fact, many lenders will offer loans for much higher amounts. The VA will guarantee up to 25% of the loan amount, which means the maximum guarantee with a full entitlement is usually 25% of the loan limit set by the VA for your county. The loan limit varies by location, so be sure to check the VA's website or consult with a knowledgeable loan officer to determine your specific loan limit.

It's important to note that your entitlement is not a one-time use benefit. It can be restored if you pay off your loan and sell the property or refinance it with a non-VA loan. This flexibility allows borrowers to use their entitlement multiple times throughout their lives. Understanding how your entitlement works will help you make informed decisions when it comes to your mortgage options.

In conclusion, if you're considering a VA loan, take the time to familiarize yourself with your entitlement. Knowing how much the VA guarantees for you will give you a clearer picture of what loan options are available and how much you can borrow. Don't be discouraged by the basic entitlement amount – it's just a starting point. Consult with a knowledgeable loan officer who specializes in VA loans to explore your options and make the most of this valuable benefit.

About the Author: Laura Ray has 20+ years in real estate investment, mortgage lending, finance, and business growth & development. In addition, Laura is the FL State Advocacy Captain for the Association of Independent Mortgage Experts, a FL licensed Real Estate Agent, former IRS Enrolled Agent, and a Veteran advocate for legislative change. Her mortgage specialty is is self employed mortgage loans and she is one of the top mortgage brokers in Fort Myers and FL with one of the best Fort Myers mortgage companies. Laura has been featured and interviewed many times in Mortgage Professional America Magazine, Cape Coral Breeze, and NFM Neighbor.

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