VA Loan Entitlement

What is a Certificate of Eligibility(COE)?

The COE is a formal document that certifies that the borrower has a VA Loan Entitlement and is eligible to participate in the program.

How do i obtain a Certificate of Eligibility(COE)?

Normally, the COE is obtained by your lender directly, but if you would like obtain it on your own:

  • complete the VA Form 26-1880, Request for a Certificate of Eligibility and either
  • submit it online through eBenefits or

What does the entitlement on my COE represent?

An entitlement is the amount of money the Veterans Administration will guarantee on a loan.  For San Diego County, the VA will guarantee up to $141,088 (25% of $564,350 county limit)

If my entitlement allows me to purchase a home up to $564,350, why is the entitlement on my COE only $36,000?

It’s completely normal for a Certificate of Eligibility to say the Entitlement is $36,000.  The key is the bonus entitlement, and how it ties back to the county limits.The general rule is a Veteran can obtain a VA home loan up to 4 times the amount of the available basic and/or bonus entitlement.

The “basic” entitlement available to each eligible Veteran is $36,000 on loans of $144,000 or less. Every eligible Veteran also receives “bonus” entitlement that is considered in excess of the $36,000 basic VA Loan Entitlement. Bonus entitlement kicks in only for loans over $144,000. Bonus entitlement is calculated by taking the annual Freddie Mac conforming loan limits for counties($564,350 for San Diego), multiplying them by 25% and then subtracting the basic entitlement of $36,000.

Example: ($564,350 x 25% = $141,088) – $36,000 = $105,088 bonus entitlement.

Generally,  an entitlement of $36,000 on the COE translates to being able to purchase a home valued up to the county limit wihout having to make a downpayment.