What is VA Loan Entitlement in Phoenix? VA loan entitlement is the amount of a home loan that will be guaranteed by the Department of Veterans Affairs. Simply stated, the lender expects the VA to repay a portion of the loan if the borrower defaults on it. That amount is the FREE funding or entitlement for your sacrifice while serving in the US military. There are 3 types of entitlement as follows: Full Entitlement – with your first home loan, the VA will provide a full entitlement so you can purchase a home without having to make a down payment. Every veteran applies for entitlement with lower mortgages. However, for homes over $144,000, the full entitlement is 25% of the loan total. Basic Entitlement – your COE or Certificate of Eligibility explains that you’re eligible for the basic entitlement of $36,000 on homes priced below $144,000. If you want to buy a more expensive home, the VA will increase it to full entitlement. 2nd Tier Entitlement – with your first VA loan, your full or basic entitlement is used to purchase a home. However, if you’ve already used the current entitlement, a new financial backing will be put into place. You can calculate what the VA will cover by taking 25% of your county’s VA home loan limit. https://www.google.com/maps?cid=6744959272592205627