VA Eligibility

Service Requirement

The VA home loan program honors members who have dedicated their service to the country and offers those benefits that help them own a home. To become VA loan eligible, one must fulfill the given service criteria.

• Active-duty service members of a minimum of 90 days of continuous service without any break at all.
• Veterans who served for 24 months unremittingly and maybe those who served for at least 90 days or 181 days at continuous.
• Reservists and National Guard Members get VA loan eligibility after serving six years or completing 90 days of active-duty service. Reservists in service before Aug. 2, 1990, are also eligible for the home loan.
• Reservists eligible for loan after six years of service also must be discharged with great honor or included in the retired list, transferred to the Standby Reserve, or continue serving in the Selected Reserve.

Certificate of Eligibility (COE)

One of the elementary criteria for VA loan eligibility is the Certificate of Eligibility (COE). It is also the first step to getting the VA loan, and veterans need to present it to the lender to validate that they qualify for the loan. If you are applying for the loan, you can request the COE through an online system, through the lender, or by email.

Discharge Type

Even if you don’t meet any of the standard requirements of VA loan eligibility, you will still still be eligible for the loan. In such an instance, your VA eligibility depends on the discharge situation. Make a note of the given categories of discharge that make you qualified for the loan.

• Discharged for hardship
• Discharged for a reduction in force or at a convenient condition by the government after you have served a minimum of 20 months of a 2-year enlistment.
• Discharged due to a service-related disability or for a medical condition.
• Early out and must have served at least 21 months of a 2-year enlistment.

Loan Limits

Technically, there are no limits if you are applying for a VA home loan. The loan limit is the amount the VA will guarantee.

Generally, the VA guarantees up to 25% of the home loan amount for lenders in case of default. Your VA loan limit, i.e., how much the VA will guarantee, depends on the amount of entitlement.

Funding Fee

The funding fee refers to a one-time payment that you need to pay on the VA home loan. Henceforth, it is a fundamental condition to fulfill VA home loan eligibility.

The funding fee is necessary for lowering the cost of your VA loan and is usually a percentage of the loan amount. If you are availing of a VA home loan, you must be ready to pay the VA funding fee unless you are:

• Getting VA compensation for a service-related disability
• Eligible for VA compensation for a service-related disability, but you are instead getting active-duty pay or retirement pay
• Receiving DIC, i.e., Dependency and Indemnity Compensation for being the surviving spouse of an eligible veteran
• An active duty service member who gives the evidence of receiving the Purple Heart on or before the closing date
• A service member who received the memorandum rating before the loan’s closing date stated your eligibility for compensation due to a pre-discharge claim.

Documents Requirement

Documentation is one of the most vital criteria for VA loan eligibility. Every veteran, active-duty service member, surviving spouse, National Guard member, or reservist applying for the loan must provide all necessary documents regarding the VA loan.
Based on your military experience or status, you will need to provide the following documents.

1. Active Duty Member – A statement of Service and relevant documents supporting breaks and discharges.
2. Veteran, Current/Ex-National Guard or Reserve Member, Veteran (activated) – DD Form 214 as the proof of their honorable service and discharge.
3. Present Reserve or National Guard member (never activated) – A statement of Service and the relevant document supporting their service and discharge.
4. Discharged National Guard member (never activated) – A report of separation, a record of service, and retirement points statement.
5. Discharged Reserve – Statement of retirement points and DD Form 214 as the relevant document supporting their service and discharge.
6. Surviving spouse – Marriage License and a copy of their spouse’s DD Form 214.

Credit and Income

VA loan eligibility also encompasses some vital credit score requirements, usually set by the lenders. For this reason, your credit score requirements will depend on your lender. The VA also wants eligible veterans to maintain a certain amount of residual income every month after payment of significant expenses.

The enforcement of the residual income requirement ensures that the borrower has sufficient income as a cushion to deal with emergencies.

Are You Eligible For VA Home Loan?

VA loan is a convenient way to buy or finance the first home purchase for me loan active-duty service members, veterans, or military spouses. While VA loan eligibility includes some essential criteria as set by the VA discussed above, it makes many military service members and veterans eligible for the VA loan.

If you are interested in buying a home and fulfill the eligibility criteria for a VA home loan, we can help. Our chief Texas VA loan specialist, Shirley Mueller, has nearly two decades of experience and has helped thousands of veterans apply for and successfully complete their VA loan process. You can be the next!