Finance

A Texas borrower's VA loan 'entitlement' refers to:

AThe maximum purchase price allowed under VA guidelines
BThe amount the VA will guarantee on the veteran's behalf, allowing lenders to make the loan without down payment✓ Correct
CThe veteran's right to multiple VA loans simultaneously
DThe VA's guarantee of the interest rate

Explanation

VA entitlement is the amount the VA guarantees to the lender if the veteran defaults. Full entitlement typically allows veterans to purchase a home at the conforming loan limit with no down payment. Veterans can restore entitlement by selling their home or refinancing.

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