VA Bonus Entitlement Calculator

Every veteran's VA benefit comes with two layers of entitlement. The first is basic entitlement — a fixed $36,000 that covers loans up to $144,000. The second is bonus entitlement (also called second-tier entitlement), which is the additional guaranty that makes zero-down-payment purchases possible on today's home prices.

Bonus entitlement is calculated as 25% of the FHFA conforming loan limit for the county where you're buying, minus your basic entitlement. In a standard county in 2026, that's 25% of $832,750 = $208,187 total guaranty available. Lenders require the VA to guarantee 25% of the loan, so four times your total available entitlement is the maximum you can finance with $0 down.

If you've never used your VA benefit, or you've paid off a previous VA loan and had your entitlement fully restored, you have full entitlement. Since the 2020 Blue Water Navy Act, full entitlement veterans face no VA-imposed loan limit — you can purchase any amount your lender will approve with no down payment required. County conforming limits become irrelevant.

If you currently have an active VA loan — or have paid one off without restoring entitlement — you have remaining entitlement. County limits still matter here. The math: take 25% of your county's 2026 FHFA conforming limit, subtract what's already charged to your COE, and the remainder times four is your $0-down ceiling.

When a remaining-entitlement veteran buys above their $0-down ceiling, the VA doesn't simply deny financing — it requires a down payment equal to 25% of the excess. If your max $0-down purchase is $500,000 and you want to buy at $600,000, the required down payment is 25% × ($600,000 − $500,000) = $25,000. This is far less than the 20% a conventional loan would require to avoid PMI.

Critically, entitlement charged is based on the original loan amount, not what you owe today. A $300,000 loan originated five years ago charges $75,000 in entitlement even if the balance is now $250,000. Entitlement is only released when the loan is paid off and restoration is requested via VA Form 26-1880.

If you sell your home and pay off the VA loan, you can request full entitlement restoration (unlimited times). You can also use a one-time restoration: pay off the VA loan while keeping the property — useful if you want to convert a home to a rental and use your full benefit again for a new purchase. This one-time option is exactly that: once per lifetime.

The VA funding fee is a one-time charge that helps keep the VA loan program self-sustaining, so it doesn't rely on taxpayer appropriations. Rates depend on your military category, whether it's your first VA loan or a subsequent use, and your down payment amount. Veterans with a service-connected disability rating — regardless of percentage — are completely exempt.

The fee can be rolled into the loan, meaning no out-of-pocket cash is required at closing. A good VA lender will factor this into your loan estimate and help you decide whether to finance it or pay it upfront.