Entitlement is the part of your benefit VA guarantees to the lender. Once a prior loan is paid, sold, assumed with substitution, or a loss repaid, that entitlement comes back — and with full entitlement there is no VA loan limit at all.
No-obligation VA pre-qualification review.
Entitlement is restored when the VA loan is paid in full and the property is disposed of, and the VA also allows one one-time restoration where the loan is paid off but the home is kept. Restoration returns you to full entitlement — no VA loan limit and $0 down.
Restoring entitlement returns you to full entitlement — no VA loan limit and $0 down — and it's requested on the same form as your COE.
Reviewed by the licensed mortgage team at Simply Approved Mortgages · Last verified August 25, 2026 against the VA Lenders Handbook (M26-7)
Look up my county limitCredit recovery and entitlement recovery are two separate problems. Clearing the waiting period does nothing for entitlement that is still charged to a prior VA loan — and vice versa.
When VA pays a guaranty claim after a foreclosure, short sale or deed-in-lieu, that entitlement stays charged to you until the claim amount is repaid. Repay it and the entitlement is restored — you return to full entitlement with no VA loan limit.
The ordinary path: the prior VA loan is paid off and the property is disposed of. Request restoration with VA Form 26-1880 so your next Certificate of Eligibility shows the entitlement back in place.
If a prior VA loan has been paid in full but you kept the property, VA allows a one-time restoration of that entitlement. It can only be used once, so it is worth confirming whether your situation genuinely needs it.
If an eligible veteran assumes your VA loan and substitutes their own entitlement for yours, your entitlement is released. Without substitution, your entitlement stays tied to that property until the loan is paid off.
You do not have to wait for restoration. Remaining entitlement is measured against your county's 2026 conforming loan limit, which can mean a down payment covering the gap on a larger purchase — but it keeps you moving now.
Restoration is requested on VA Form 26-1880, the same form used for a Certificate of Eligibility. Start the COE walkthrough or check your county limit if you plan to buy on remaining entitlement.
Waiting for restoration is optional. Remaining entitlement can support a new purchase now, with a down payment covering any gap between the guaranty and 25% of the loan amount.
Restoration does not change what the loan costs. The VA funding fee is set by your down payment and whether this is a first or subsequent use of the benefit — and a subsequent use is exactly what a restored-entitlement purchase usually is.
| Down payment | First use | Subsequent use |
|---|---|---|
| Less than 5% down | 2.15% | 3.30% |
| 5% to 9.99% down | 1.50% | 1.50% |
| 10% or more down | 1.25% | 1.25% |
Same fee on a first or subsequent use.
Charged on the new loan amount.
VA is the direct lender on federal trust land.
Exemption status is printed on your Certificate of Eligibility. Price your own fee with the funding fee calculator. There is never monthly mortgage insurance on a VA loan, whatever your credit history looks like.
Send us the entitlement lines and we'll tell you what you can buy today.
SAM is the Simply Approved Mortgages AI assistant, grounded in the VA Lenders Handbook M26-7, 38 CFR Part 36 and the county loan-limit file behind this page. It answers general VA questions. A licensed mortgage loan originator reviews every scenario before any terms are confirmed.
Hi — I'm SAM with Simply Approved Mortgages. Ask a question about restoring VA entitlement, or pick one of the popular questions beside this box.
AI assistant — general VA loan education only, not financial, legal or tax advice, not a loan approval, pre-approval or commitment to lend. Simply Approved Mortgages LLC (NMLS #2620881) is an independent mortgage broker and is not the VA, HUD or any government agency, and is not endorsed by them. All loans are subject to lender underwriting, appraisal and final approval. Equal Housing Opportunity.
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Program rules and figures on this page are taken from the primary government sources below, not from third-party summaries.
Verified against VA Lenders Handbook M26-7, Change 6 — August 12, 2026. Simply Approved Mortgages is not affiliated with or endorsed by HUD, VA, or any government agency.
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