VA Entitlement

More Information on Entitlements

The VA entitlement is when the Veteran Affairs promises a certain amount will be paid to the lender if a borrower in the military defaults on their loan. Unfortunately, this happens and the VA will try to recover these funds from you. VA entitlement does not mean that their will be any type of payment to the borrower or to the financial institution (bank).

Entitlement Rules Of The Road

There is a specific entitlement amount located on the document known as the COE. The maximum amount that is allowed to be on the COE for a VA entitlement is $36,000. Using the entitlement on your VA loan is very important. Borrowers should pay attention to the amount of entitlement, as well as the rules and regulations of the entitlement. A borrower may use up to an amount of $60,000 of entitlement for a loan consisting of $144,000 or greater. You must also understand that the COE will never show that the extra $24,000 has been used. There will be a place on the COE form that will note the available entitlement amount.

More Information on Entitlements

Assume Your VA Position

Keep in mind that the entitlement is for the specific loan you have acquired. If someone takes over this loan, the entitlement will also be transferred with the loan and will not expire until this aforesaid loan is paid in full. If the form shows that the maximum entitlement amount is equal to the date it is effective, borrowers will not need to have the COE updated. Lenders will understand that the borrower or veteran now has the max available of $36,000.

More Information on Entitlements

Second VA Time Is The Charm

Veterans are allowed to use their entitlement a second time. If a veteran has paid off their previous loan and let go of the aforesaid property they are eligible to restore their entitlement for use once again. There is also a one-time opportunity to have your entitlement restored if you pay off your loan, but are still in possession of the property.

More Information on Entitlements

To Entitle Or Not To Entitle

There is a process and special documentation that must be completed in order to have your entitlement restored and it will be the Veteran Affair’s final decision on whether or not this procedure is permissible. The reuse of your entitlement is very common and understanding this opportunity upon signing your original VA loan will give you a better chance of using this option in the future.

COE Is Essential For Entitlement

Entitlement is an important part of a VA loan and should be taken very seriously. Obtaining help from the VA during circumstances that require financial assistance is very beneficial. Military and veterans should read the COE information regarding entitlement upon receiving a VA loan. Apply with our one minute refinance quote application and we will contact you with more information.


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