VA loans are made on the basis of an "entitlement." Entitlement refers to the amount of money the government will guarantee to a VA loan lender on behalf of a VA-eligible borrower. Most lenders will lend up to four times the available entitlement, without requiring a down payment.
 
To be approved for a VA Loan, a Veteran must prove his or her entitlement with a Certificate of Eligibility. Once you’ve proved your entitlement, you never lose it.
 
Restoring Entitlement applies if you’ve previously had a VA loan. You could still have "remaining entitlement" that you could “restore” to use for another VA loan.

Today, the maximum amount of entitlement is $36,000. Since the amount of entitlement was much lower in the past, and the veteran is able to use the current benefit amount, some veterans are allowed a new entitlement, even if they used some entitlement in the past.

For example, the maximum amount of entitlement in 1974 was $12,500. The difference between the 2008 maximum entitlement and the 1974 maximum is $23,500. Because of the increase, many borrowers have been able to use the remaining entitlement of $23,500 to buy another home with VA financing.

How do I obtain restoration of entitlement?

If you decide to do this yourself, you’ll need to obtain and complete VA Form 26-1880 from your nearest Veteran’s Affairs office. Alternatively, our VA Loan Specialists may be able to do this for you. We offer professional advice