VA Loan Second Tier Entitlement 2027 Calculator
Calculate your remaining VA bonus entitlement to buy a second home without selling the first. 2027 county loan limits, no-down threshold, and minimum down required. Free, private.
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What is VA second-tier entitlement?
Second-tier entitlement (also called "bonus entitlement") lets eligible veterans take out a second VA-backed mortgage while keeping the first loan in place. This is most often used when a service member is permanently relocated (PCS), buys a new primary residence while renting out the original, or simply moves up to a larger home. As long as the veteran has remaining entitlement, they can qualify for a second VA loan with little or no down payment.
The VA does not lend money directly — it guarantees 25% of the loan amount against default. Each veteran has a basic entitlement of $36,000 and an additional bonus entitlement that scales with the county conforming loan limit (the 2027 baseline is $806,500). Total available entitlement on a single loan = 25% of the county loan limit, e.g. $201,625 at the 2027 baseline.
How to calculate remaining entitlement
The math: Remaining Entitlement = (County Loan Limit × 25%) − Entitlement Already Used.
Example: You used $70,000 of entitlement on a $280,000 first VA loan in Texas (county limit $806,500). Your 2027 max entitlement is $806,500 × 25% = $201,625. Remaining = $201,625 − $70,000 = $131,625.
To buy a $500,000 second home with zero down, you'd need entitlement of $500,000 × 25% = $125,000. You have $131,625 remaining → you qualify for the full no-money-down second loan.
If your remaining entitlement is insufficient, you must put down 25% of the shortfall as cash. Example: if you have $100,000 remaining and need $125,000, you must contribute (125,000 − 100,000) × 4 = $100,000 down payment (because VA guarantees only 25% of the loan amount).
Funding fee and other costs
Subsequent-use VA loans carry a higher funding fee:
- 3.30% with 0% down (vs 2.15% first use)
- 1.50% with 5% down
- 1.25% with 10%+ down
The fee is waived entirely if you have a service-connected disability rating, are a Purple Heart recipient, or are a surviving spouse. You can roll the funding fee into the loan balance to avoid out-of-pocket cost. On a $500,000 second loan with 0% down, the funding fee is $16,500 — significant compared to the first-time use $10,750.
Restoring entitlement
You can restore entitlement by paying off the first VA loan in full (selling the home or refinancing into conventional). A one-time restoration is also available if you've already used and restored entitlement at least once before and still own the home — apply via VA Form 26-1880. Refinancing to a non-VA loan (conventional, FHA) automatically restores the full original entitlement, useful if you've owned the home long enough to qualify for conventional without PMI.
Source: VA Lender's Handbook M26-7 Chapter 7, VA Pamphlet 26-71-1 — Second-Tier Entitlement, FHFA 2027 conforming loan limits.