Texas VA Loan Eligibility
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✓ Soft credit pull only. Applying won’t affect your credit score.
- My team reviews your application as soon as it comes in.
- If you qualify, you get a pre-approval letter and a full itemized estimate.
- If you’re not there yet, you get a clear plan to get ready.
Who Is Eligible For VA Home Loan?
Active-duty service members, veterans, National Guard members, reservists, and their spouses are eligible for VA home loans.
The Department of Veteran Affairs determines the requirements for VA loan eligibility, and applicants need to show the Certificate of Eligibility (COE) to the lender to ascertain that they are qualified for the loan based on their service history.
The VA loan program aims to help eligible persons purchase, build, renovate, or adapt a home for living. Individuals with VA home loan eligibility are also subjected to numerous advantages, such as no down payment requirement, discounted interest rates, no PMI (Private Mortgage Insurance), and much more flexible credit requirements.
Texas VA Loan Eligibility Criteria
| Eligibility Factor | Basic Eligibility Criteria | Notes/Exceptions |
| Service Time | 90 continuous days of active duty | Current active-duty service members |
| 24 continuous months, or the full period ordered to active duty (at least 90 days) | Veterans who served since Aug. 2, 1990, with exceptions for disability and certain discharges. Earlier eras: 90 days (wartime) or 181 days (peacetime) | |
| 6 creditable years in the Selected Reserve or National Guard | Still serving, or discharged honorably or retired | |
| OR at least 90 days of non-training active duty (Title 10) | For Guard, 90 days including 30 consecutive under Title 32 orders | |
| Discharge Type | Discharge under conditions other than dishonorable. | Certain cases other than honorable discharge make a veteran eligible. For instance, if you were discharged for service-related disability or a medical condition. |
| Home Use | For purchasing, building, repairing, or refinancing a primary home. | Not for an investment property or second home purchase. |
| Certificate of Eligibility (COE) | Must obtain a COE as proof of eligibility. | Can be requested online at VA.gov, through a VA-approved lender, or by mail (VA Form 26-1880). |
| Loan Limits | No loan limits for qualifying borrowers set by the VA. | Lenders may set their own limits based on loan type, credit and income status, and property type. |
| Funding Fee | A percentage of the loan amount; varies based on type of loan and service. | Fee can be financed, some are exempt, including recipients of VA compensation for service-connected disabilities and surviving spouses. |
| Credit & Income | No VA-mandated credit score minimum. | No minimum credit score with my team on VA purchase and refinance loans (VA construction loans start at a 620 and VA renovation loans require a 600). Lenders review income requirements. |
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 since Aug. 2, 1990: 24 continuous months, or the full period ordered to active duty (at least 90 days). Earlier eras: 90 days during wartime or 181 continuous days during peacetime.
- Reservists and National Guard members: 6 creditable years in the Selected Reserve or National Guard, or at least 90 days of non-training active duty (for Guard, 90 days including 30 consecutive under Title 32 orders).
- Reservists who qualify through 6 years of service must also be honorably discharged, placed on the retired list, transferred to the Standby Reserve after honorable service, or still 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 mail.
Discharge Type
Even if you don’t meet any of the standard requirements of VA loan eligibility, you will 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 is a one-time charge that helps offset the program’s cost to taxpayers. It can be financed, and some borrowers are exempt.
The funding fee 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.
- Active Duty Member – A statement of Service and relevant documents supporting breaks and discharges.
- Veteran, Current/Ex-National Guard or Reserve Member, Veteran (activated) – DD Form 214 as the proof of their honorable service and discharge.
- Present Reserve or National Guard member (never activated) – A statement of Service and the relevant document supporting their service and discharge.
- Discharged National Guard member (never activated) – A report of separation, a record of service, and retirement points statement.
- Discharged Reserve – Statement of retirement points and DD Form 214 as the relevant document supporting their service and discharge.
- Surviving spouse – VA Form 26-1817 if receiving DIC; otherwise VA Form 21P-534EZ, marriage license and the Veteran’s death certificate, plus the DD214 if available.
Credit and Income
VA loan eligibility also includes a credit review. VA sets no minimum score, and neither does my team on VA purchase and refinance loans; VA construction loans start at a 620 credit score, and VA renovation loans require a 600. Other lenders may add their own minimum score. The VA also wants eligible veterans to maintain a certain amount of residual income every month after payment of significant expenses.
wondering if bad credit disqualifies you? See our guide on getting a VA loan with bad credit.
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?
A VA loan is a convenient way to buy or finance a first home purchase for 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 been originating VA loans since 2003. You can be the next!
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