Virginia VA Home Loans: Full vs Bonus Entitlement, BAH and Disabled Veteran Tax Relief
Updated October 2026
Military moves make Virginia a major VA mortgage market, from Norfolk, Oceana, and Langley to Quantico, Belvoir, and the Pentagon. Whether you are buying after a permanent change of station or keeping an existing home, Dogwood & Dormer recommends resolving entitlement, qualifying income, and occupancy before shopping at a particular price point.
Understand full and remaining entitlement
With full entitlement, VA does not impose a county-based loan limit requiring a down payment. You still need sufficient income, acceptable credit, an eligible property, and lender approval. The appraisal and purchase terms can also create cash requirements.
“Bonus entitlement” commonly describes additional entitlement beyond the basic entitlement amount. It is not a separate cash benefit or a promise that a second purchase needs no down payment.
If entitlement remains tied to another VA loan, the applicable county conforming limit helps determine the remaining guaranty available. In 2026, that calculation can differ between the $832,750 baseline in Hampton Roads and the $1,249,125 ceiling in designated Northern Virginia jurisdictions.
- Obtain your Certificate of Eligibility early.
- Identify any outstanding VA-backed loan.
- Ask whether entitlement restoration is available.
- Request a written down payment calculation when entitlement is partial.
The Department of Veterans Affairs Home Loans explains entitlement and restoration. See the Virginia loan-limit guide for geographic distinctions.
Document BAH and the post-move budget
Basic Allowance for Housing may count as qualifying income when documented and expected to continue. Lenders evaluate orders, duty location, pay statements, and the anticipated housing allowance after a move. Do not qualify your personal budget using an allowance tied to a location you are leaving.
VA underwriting also considers residual income: money left after specified obligations and expenses. Existing mortgage payments, childcare, commuting costs, and an upcoming separation from service deserve attention even when the headline debt ratio looks comfortable.
Use the monthly payment calculator to include insurance, taxes, association dues, and any financed funding fee.
Separate loan benefits from property tax relief
VA purchase loans generally do not require monthly mortgage insurance. A funding fee may apply unless the borrower qualifies for an exemption; that exemption is separate from Virginia property tax relief.
Virginia’s qualifying principal-residence exemption generally requires a service-connected disability rated 100% permanent and total. Confirm eligibility and approval with the locality before budgeting a zero tax bill.
The Virginia Department of Taxation provides state tax resources. A VA loan approval, disability compensation award, and local real estate exemption are distinct determinations.
Compare Current Mortgage Rates
Compare current APRs, points, fees, and estimated monthly payments from participating lenders below.
Loan Program Comparison: 2026 Benchmarks
Virginia VA Home Loans: Full vs Bonus Entitlement, BAH and Disabled Veteran Tax Relief — Confirm service eligibility and entitlement first; full entitlement removes the VA loan-limit cap, not lender affordability checks. Compare the funding fee or exemption and no monthly PMI.
Historical 2025 one-unit comparison: conforming $806,500; FHA floor $524,225. County and unit-count limits can differ.
| Loan program | Down payment / equity | 2026 one-unit baseline | Costs and page-specific comparison |
|---|---|---|---|
| VA | 0% for eligible borrowers | No VA limit with full entitlement | No monthly PMI; funding fee unless exempt |
| Conventional | 3%–5% subject to eligibility | $832,750 | PMI generally below 20% down |
| FHA | 3.5% at 580+; 10% at 500–579 | $541,287 floor | 1.75% upfront MIP; 0.55% annual for >95% LTV, base loan ≤$726,200, term >15 years |
| USDA | 0% for eligible borrowers | Income, address and repayment eligibility | Guarantee and annual fees; confirm current schedule |
| Jumbo | Lender-specific cash and reserves | Above applicable conforming limit | Lender-specific pricing and insurance |
| Home Equity / Refinance | Equity and underwriting dependent | Property and lender dependent | Compare closing costs, term and break-even |
Sources: FHFA limits; HUD FHA limits.
Editorial Methodology & Primary Sources
Verification date: Not recorded; check the primary source and lender timestamp before relying on an estimate.
Rate comparisons use participating lender feeds, not a whole-market survey or guaranteed offers. Freddie Mac PMMS is a market benchmark, not a personalized quote. Calculator models rely on published regulatory formulas and disclosed assumptions rather than fabricated first-person loan testing.
Monthly principal and interest use the amortization formula P × r / (1 − (1 + r)−n), where r is the monthly note rate and n is the number of payments; at zero interest use P / n. PITI adds monthly property taxes and homeowners insurance; PMI is separate. APR includes applicable finance charges under Regulation Z and is not the note rate used for payments. Compare lender Loan Estimates for actual APR and fees.
- Consumer Financial Protection Bureau (CFPB) — Loan Estimates, APR and borrower disclosures; Regulation Z.
- U.S. Department of Housing and Urban Development (HUD / FHA) — FHA program guidance.
- U.S. Department of Veterans Affairs (VA) — VA loan eligibility and benefits.
- Freddie Mac Primary Mortgage Market Survey (PMMS) — published rate benchmarks.
- U.S. Census state tax collections — state property tax benchmarks; confirm parcel-specific assessments and exemptions with the state revenue department and local assessor.
The payment snapshot uses illustrative annual taxes of 1% of home price, $1,200 insurance and 0.5% PMI below 20% down, not verified local quotes. Other calculators disclose their inputs and assumptions. Published guidance and lender feeds may change independently; confirm current program rules, taxes and offers before a decision.