There are many VA loan benefits, which make them an attractive option for those who are eligible. However, you need to make sure that you meet certain eligibility requirements before you can receive a VA loan. Below, we’ll outline one of the key requirements of getting a VA loan, which is VA loan entitlements.
What Is a VA Loan?
First, it’s important to know what a VA loan is. A VA loan is a type of home mortgage loan intended for active-duty military members, veterans, and their families. Through this program, the VA partially secures the loan, allowing lenders to offer better rates to borrowers.
What Are VA Loan Entitlements?
To understand VA loan limits for 2023, it’s important to first understand how VA loan entitlements work. Entitlement essentially refers to how much of the VA loan benefits you’re still eligible for. If you meet at least one of these VA home loan requirements, you have full entitlement:
- You have yet to use your home loan benefit.
- You have fully repaid a previous VA loan and sold the property.
- You used your home loan benefit, but had a foreclosure or compromise claim on the property and repaid the loan in full.
VA Loans With Full Entitlement
If you have full entitlement, this means that you no longer have limits on any home loans of over $144,000. As a result, you won’t have to pay a down payment. The VA will also guarantee your loan to the lender if you default on any loan over the $144,000 amount and they will repay up to 25% of the loan amount.
However, this doesn’t necessarily mean that you can get any size loan that you want. You’ve met the VA loan requirements, but it’s still up to the lender to determine how much you can borrow. They will base this decision based on factors like your income, assets, and credit history.
VA Loans With Remaining Entitlement
If you don’t meet the requirements for full entitlement, you may have what is called remaining entitlement. With remaining entitlement, the county where you live impacts your VA loan limit. What this means is that if you default on your loan, the VA will pay the lender up to 25% of the county’s loan limit, minus the amount of your previously used entitlement.
If you meet any of the following criteria, you may have remaining entitlement:
- You are in the process of paying back an active VA loan.
- You’ve paid off your previous VA loan and still own the property.
- You had a compromise claim on a previous VA loan and have yet to repay it.
- You refinanced your previous VA loan into a non-VA loan, while still owning the property.
- You had a foreclosure on a previous VA loan and have yet to repay it.
Learn More About VA Loan Eligibility in Texas
If you’re interested in getting a VA loan in Texas, then The Tuttle Group is here to help. We can discuss the VA loan requirements with you and help you determine your VA loan eligibility. With our help, securing a VA loan for your next home in Texas is simple and easy. Start today by contacting us and letting us know what type of loan you’re looking for.
