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VA entitlement is the portion of a home loan that the U.S. Department of Veterans Affairs (VA) guarantees on behalf of an eligible veteran. This guaranty protects the lender—not the borrower—and allows qualified veterans to access favorable mortgage terms, including flexible underwriting and, in many cases, no down payment.

Understanding how VA entitlement works is especially important for veterans purchasing homes in Seattle, King County, and other Washington State markets, where home prices and conforming loan limits may be higher.

Basic VA Entitlement

All eligible veterans receive a basic entitlement of $36,000. This amount represents the minimum level of guaranty provided by the VA and is part of the overall entitlement calculation.

Importantly, the basic entitlement does not limit the loan amount a veteran may borrow.

VA Loan Limits and Entitlement (Current Rules)

Effective January 1, 2020, the VA eliminated loan limits for veterans with full entitlement under the Blue Water Navy Vietnam Veterans Act.

• Veterans with full entitlement may purchase a primary residence with no VA loan limit and no down payment, even in high-cost areas such as Seattle and King County.
• Veterans with partial entitlement—due to an active VA loan or a prior VA loan that was not fully restored—are subject to entitlement calculations tied to the conforming loan limit in the county where the property is located.

How VA Entitlement Is Calculated Today

For veterans with partial entitlement, the VA generally guarantees 25% of the loan amount, up to 25% of the applicable county conforming loan limit, minus any entitlement already used.

In Washington State:

• Counties such as King County are classified as high-cost areas and have higher conforming loan limits.
• The amount of remaining entitlement determines whether a down payment is required on a subsequent VA loan.

Example: Using VA Entitlement for Two VA Loans

Assume (example only):

• King County conforming loan limit: $766,550
• Maximum VA guaranty: $191,637.50 (25%)

If a veteran:

• Currently has a VA loan that used $50,000 of entitlement

Remaining entitlement: $141,637.50

Maximum new VA loan without a down payment: $566,550 ($141,637.50 ÷ 25%)

If the new purchase price exceeds this amount, a down payment may be required to cover the difference.

Key Takeaways for Washington State Veterans

• VA loans do not have loan limits for veterans with full entitlement
• VA entitlement may be used more than once
• Some veterans may qualify to hold more than one VA loan at the same time
• Down payment requirements are based on remaining entitlement, not simply purchase price

Important Disclaimer

VA entitlement rules are subject to change and depend on prior VA loan usage, county loan limits, property eligibility, and individual qualifications. Veterans considering a purchase or refinance in Seattle or anywhere in Washington State should review their entitlement with a VA-approved lender. This content is for informational purposes only and is not a commitment to lend or an offer of credit. Loan programs, terms, and eligibility requirements are subject to change.