What Veterans Need to Know
May is Military Appreciation Month to honor our nation’s veterans and active-duty military members’ dedication, service, and sacrifices. As part of this tribute, it’s also the perfect opportunity to ensure that our VA borrowers fully understand the home loan benefits they’ve rightfully earned, including one of the most misunderstood perks: VA Bonus Entitlement.
What Is VA Bonus Entitlement?
The VA loan program is known for its incredible benefit of allowing 100% financing, meaning no down payment, for eligible borrowers. Most service members and veterans are familiar with the standard VA entitlement, which helps them purchase a primary residence without needing mortgage insurance or a significant cash down payment.
But what happens when you’ve already used your VA loan once or currently have a VA loan on another property?
That’s where VA Bonus Entitlement comes into play. This provision allows qualified borrowers to tap into additional entitlement and purchase another home using a VA loan without needing to sell the first home or pay it off completely. And yes, in many cases, it still allows for zero down.
Who Can Use Bonus Entitlement?
You might be eligible for Bonus Entitlement if:
- You’ve used your VA loan in the past and haven’t fully restored your entitlement
- You currently own a home financed with a VA loan but want to purchase a new primary residence
- You want to keep your existing VA-financed property as an investment or rental
This is not limited to only one-time use, and many veterans are surprised to learn they still have remaining entitlement to put toward a new home.
How Much Entitlement Do I Have Left?
This can vary based on:
- The county loan limits where you’re buying
- How much of your entitlement was used on a previous VA loan
- Whether that previous loan has been paid off, assumed, or foreclosed upon
Even if you’ve already used part of your entitlement, you may still qualify for a second VA loan, as long as your remaining entitlement covers 25% of the loan amount, or you can make up the difference with a small down payment.
The good news? We help calculate this for you, it’s easier than you think.
As we honor our heroes this Military Appreciation Month, there’s no better time to ensure that those who’ve served our country are empowered with the knowledge—and benefits—they’ve rightfully earned. If you’re a veteran or active-duty service member considering your next move, don’t let confusion around VA Bonus Entitlement hold you back.
Reach out today for a personalized entitlement review, and let’s explore how your VA benefits can work harder for you—because you’ve earned them.
