I received my VA Eligibility certificate the other day and i have question. What do the two numbers represent?
The first is a low number the second a high number. It reads as follows:
"Entitlement Code: 10 *Veteran is eligible for the benefits of Chapter 37, title 38 subject to any conditions cited below. Basic entitlement for veterans who have not previously used home loan benefits is $36,000. For home purchase, construction, and condominium loans that are in excess of $144,000, the entitlement amount shown is increased to 25% of the Freddie Mac conforming loan limit for a single family residence. The guaranty will not exceed 25 percent. Available entitle ment represents the portion of a loan which may be guaranteed or insured by VA to a lender. For more information about maximum loan amounts contact the nearest VA Regional Loan Center for further information."
I understand that the VA only backs the loan, i have to go out and find my own lender. What i dont understand is, what does the $36000 and the $144000 mean? Will they only back one of those amounts?
Entitlement code is a period of time you were in the service. As long as your COE says $36,000 then don't worry about the rest of it. It means you can go as high as $417,000 on a VA loan. $36,000 is 25% of $144,000 and that is the base number for eligibility.
