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VA loans · 38 U.S.C. chapter 37VA loan entitlement: why some veterans have no loan limit, and how entitlement is restored

A VA home loan comes from a private lender; VA guarantees part of it, and the most VA can guarantee for a veteran is that veteran's entitlement. Under 38 U.S.C. 3703(a)(1), for a home purchase loan above $144,000 the guaranty is 25% of the loan. For a veteran who has never used entitlement, or whose used entitlement has been fully restored, the entitlement available is 25% of the loan – there is no cap tied to the conforming loan limit. A 'covered veteran' – one who used entitlement that hasn't been restored – is limited to 25% of the Freddie Mac conforming loan limit for a single-family home, minus the entitlement still in use. Entitlement can be restored under 38 U.S.C. 3702(b): when the property has been sold (or destroyed by fire or another natural hazard) and the loan is repaid in full or VA is released from liability; when another eligible veteran assumes the loan and substitutes their own entitlement; when the loan is repaid and the new loan is on the same property; and, once per veteran, when the loan is repaid or VA is released from liability in other cases. An honorable discharge serves as a certificate of eligibility to apply. The veteran must certify at closing that they intend to occupy the home – living there personally, or moving in within a reasonable time; if active-duty status prevents it, a spouse who occupies the home can make the certification, or for a dependent child, the veteran's attorney-in-fact or the child's legal guardian.

How much VA guarantees (38 U.S.C. 3703)

  1. Loans over $144,000

    The guaranty is 25% of the loan.

  2. Full entitlement

    Never used, or fully restored: 25% of the loan – no conforming-limit cap.

  3. Covered veteran

    Entitlement still in use: 25% of the conforming limit minus what's tied up.

When entitlement is restored (38 U.S.C. 3702(b))

  1. Sold and paid off

    The home was sold (or destroyed) and the loan repaid or VA released from liability.

  2. Veteran substitution

    An eligible veteran assumes the loan and uses their own entitlement instead.

  3. Same property

    The loan was repaid and the new loan is on the same property.

  4. One-time restoration

    Loan repaid or VA released in other cases – only once per veteran.

Occupancy (38 U.S.C. 3704(c))

  • The veteran certifies at closing that they intend to live in the home.
  • That means living there now, or moving in within a reasonable time after closing.
  • Active duty: a spouse who occupies the home can certify, or for a dependent child, the veteran's attorney-in-fact or the child's guardian.

What the TC can do

  • When a veteran is selling a VA-financed home, note whether the buyer will assume the loan – substitution of entitlement matters.
  • Ask the lender early about the veteran's certificate of eligibility and remaining entitlement.
  • If the veteran is deployed, plan who signs the occupancy certification at closing.

Questions veterans ask

Is there a VA loan limit?

Not for a veteran with full entitlement – the guaranty is 25% of the loan with no conforming-limit cap. A veteran with entitlement still in use is limited to 25% of the conforming loan limit minus that amount (38 U.S.C. 3703).

How do I get my VA entitlement back?

Generally by selling the home and paying off the loan, by having an eligible veteran assume the loan with their own entitlement, or, once, by paying off the loan without selling (38 U.S.C. 3702(b)).

Can I use a VA loan if I'm deployed?

Yes, if your spouse occupies or will occupy the home and makes the occupancy certification, or for a dependent child, your attorney-in-fact or the child's guardian does (38 U.S.C. 3704(c)(2)).

Can I have two VA loans at once?

It can be possible with remaining entitlement: a covered veteran's available entitlement is 25% of the conforming loan limit minus the entitlement still in use.

Related guides

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Source: 38 U.S.C. 3702(b)–(c), 3703(a)(1) and 3704(c) (U.S. Code, 2023 edition, govinfo.gov), read October 26, 2026.

General information, not legal or financial advice. VA and the lender decide eligibility. ClosingCode is software; it is not a lender. This guide is not a substitute for the advice or services of an attorney.