When you are looking for a Veterans Administration loan (or other benefit), you will hear the term “entitlement” come up frequently.
It is an important term, as it refers to the amount that the VA will guarantee or provide to you in benefits. For example, in the context of VA home loans, your “entitlement” dictates how much the VA will actually guarantee to your lender. Here’s an example. A veteran’s basic entitlement is $36,000 (or up to $89,912 for certain loans over $144,000). Most lenders will generally loan up to 4 times the available entitlement without requiring a down payment.
In simple terms the VA entitlement is like having the VA make your 25% down payment for you. A VA loan can be a great way to go!
To keep up to date with current entitlements, check out the VA’s website.