The VA Home Loan benefit is one of the most powerful financial tools available to eligible veterans — allowing purchase of a primary residence with no down payment, no private mortgage insurance (PMI), and competitive interest rates. Yet many veterans believe they can only use it once, or that their benefit is "used up" after their first home. Neither is true.

What Is VA Entitlement?

Per VA.gov, entitlement is the amount the VA guarantees to a lender if you default on your loan. There are two types: basic entitlement (currently $36,000 for most veterans) and bonus entitlement (also called Tier 2). For loans above $144,000, the bonus entitlement applies, and the VA guarantees up to 25% of the loan amount above $144,000 — up to the conforming loan limit for your county.

For most veterans with full entitlement, there is no loan limit as of 2020 (this changed with the Blue Water Navy Vietnam Veterans Act of 2019). Veterans with full entitlement can buy a home of any price with no down payment, subject to lender underwriting.

Funding Fee

The VA charges a one-time funding fee, paid at closing, that finances the VA loan guaranty program. The funding fee varies by:

  • Type of service (active duty/reserves/National Guard)
  • Whether it is a first use or subsequent use of VA loan benefit
  • Down payment amount

Per VA.gov, for 2025, the funding fee for a first-time VA loan with no down payment is 2.15% of the loan amount for active duty veterans. For subsequent uses, the fee is 3.3%. Making a 5% down payment reduces the fee to 1.5%, and a 10% down payment reduces it to 1.25%.

Veterans with a service-connected disability rating of 10% or higher, surviving spouses receiving DIC, and active duty Purple Heart recipients are exempt from the funding fee. This exemption can save thousands of dollars at closing.

Using the VA Loan Twice

You can use the VA home loan benefit more than once. There are two main scenarios:

  1. Sell your current VA-financed home: When you sell and pay off your existing VA loan, your entitlement is fully restored. You can use the full VA loan benefit again for your next home with no restrictions.

  2. Keep your current home and buy another: If you have remaining entitlement after your first VA loan, you may be eligible to use that remaining entitlement on a second VA loan simultaneously — for example, if your first loan is small and your county conforming limit is high. This is called "bonus entitlement" or "remaining entitlement."

To restore entitlement after selling, submit VA Form 26-1880 (Request for a Certificate of Eligibility) at va.gov.

KEY TAKEAWAYS:

  • VA loan benefit can be used multiple times — selling your home and paying off the VA loan fully restores entitlement
  • Veterans with 10%+ VA disability rating are exempt from the VA funding fee (saving 2.15%–3.3% of loan amount)
  • No down payment required and no PMI — significantly reduces upfront and monthly costs vs. conventional loans
  • As of 2020, there is no VA loan limit for veterans with full entitlement
  • Remaining entitlement after a first VA loan can sometimes support a second simultaneous VA loan