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What is VA Entitlement?

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VA loan entitlement is an extraordinary benefit to have after serving your country, but it can also be confusing. Some of the confusion stems from thinking that since you’ve used your VA loan eligibility for a VA loan, you’re not eligible for future loans. However, understanding just how VA loan entitlement works may open up an opportunity for you to own another home.

How Does It Work?

A VA loan is essentially VA guaranteeing your mortgage lender for 25% of your loan up to the county loan limit where you are buying.  It is a safeguard for the lender and the reason you are able to purchase with no money down and no mortgage insurance, unlike those without VA loan entitlement.

If you don’t currently have a VA loan on another property, you will have your full VA entitlement available and be able to purchase a home on Oahu at 100% financing up to the county loan limit of $726,525, as long as you qualify.  Should you wish to purchase a home above that amount, you would just need to put down 25% of the amount that exceeds $726,525.

Now let’s say you do currently have a VA loan in another state.  Chances are that loan amount is for less than the loan limits here in Hawaii, oftentimes significantly.  Should that be the case, you likely have remaining entitlement that can be used for another VA loan concurrently.

What’s Left Can Be Used for Another Loan

If you did not borrow the full amount that you are entitled to on your first loan, then your remaining VA entitlement may be used for the purchase of another home while still being able to keep your original home and VA loan simultaneously.  Your remaining VA loan entitlement can be calculated by an experienced VA loan representative with just a little information from you.  With such a great loan program available to you for serving your country, don’t miss out on the opportunity to maximize your home ownership potential.

Contact Shannon Severance, Hawaii’s Military Relocation Expert, and she’ll guide you in the right direction.

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