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Requirements To Be Eligible for a VA Loan
By Alison Tobin MONEY RESEARCH COLLECTIVE
VA loans are a benefit available to qualifying military homebuyers. They’re a loan program that is backed by the government to help service members, veterans and surviving spouses obtain favorable mortgages. But not everyone can reap their benefits.
If you’re approved for a VA loan, it will be provided by private lenders, with the U.S. Department of Veterans Affairs (the VA) guaranteeing part of it. Compared to those who get a conventional loan, VA loan borrowers enjoy better terms, including no downpayment requirements, fewer closing costs, no need for private mortgage insurance, competitive mortgage rates and more.
Do you qualify for the VA loan program? We walk through all of the guidelines below, including how to get your Certificate of Eligibility.
Table of contents
- VA loan requirements for 2022
- How to apply for a VA loan
- Can you apply for a VA loan if you don’t meet all the requirements?
- VA loan requirements FAQs
- Summary of our guide to VA loan requirements
VA loan requirements for 2022
VA loans are available to former and active military members of the Army, Navy, Marines and Air Force, as well as people associated with the National Guard, Reserves and Coast Guard. You could also get a VA loan if you serve in the U.S. Public Health Service (USPHS) and the National Oceanic and Atmospheric Administration (NOAA).
You may also be eligible if you’re still being educated to serve. Provided you meet other requirements, VA loans are available to cadets at the Military Academy West Point, the Air Force Academy or Coast Guard Academy or Midshipmen at the Naval Academy.
Eligibility hinges on meeting the minimum service requirements, which are outlined below.
If you are unsure if you qualify, contact your regional VA loan center for more information.
Requirements set by the Department of Veterans Affairs
Minimum service required to receive a VA loan varies according to the service in which you serve or served, whether that was in peacetime or wartime, and whether you are in active service or a veteran or veteran’s spouse.
Requirements for current active duty service members
If you currently serve on active duty, you are eligible for a VA loan once you serve 90 continuous days.
Requirements for veterans
If you are a veteran, your active-duty service requirements depend on when you served. It largely depends on if you served in wartime or peacetime and during what period.
- Aug. 2, 1990 to present (Gulf War period to present): At least 24 continuous months of service; the full period in which you were called to active duty (at least 90 days); at least 90 days if you were discharged for a hardship or a reduction in force, with an exception if you were discharged for a service-related disability, in which case service of less than 90 days is acceptable
- Sept. 8, 1990 through Aug. 1, 1990: At least 24 continuous months of service; the full period you were called to active duty (at least 181 days); at least 181 days if you were discharged for a hardship or a reduction in force, with an exception if you were discharged for a service-related disability, in which case service of less than 181 days is acceptable
- Oct. 17, 1981 through Aug. 1, 1990 if you were an officer: At least 24 continuous months of service; the full period you were called to active duty (at least 181 days); at least 181 days if you were discharged for a hardship or a reduction in force, with an exception if you were discharged for a service-related disability, in which case service of less than 181 days is acceptable
- May 8, 1975 through Sept. 7, 1980 (post-Vietnam War period): 181 continuous days of service, but less than 181 is acceptable if you were discharged for a service-related disability
- May 8, 1975 through Oct. 16, 1981 if you were an officer: 181 continuous days of service, but less than 181 is acceptable if you were discharged for a service-related disability
- Aug. 5, 1964 through May 7, 1975 (Vietnam War): at least 90 total days, but less than 90 is acceptable if you were discharged for a service-connected disability
- Nov. 1, 1955 through May 7, 1975 (in Vietnam): at least 90 total days, but less than 90 is acceptable if you were discharged for a service-related disability
- Feb. 1, 1955 through Aug. 4, 1964 (post-Korean War period): 181 continuous days of service, but less than 181 is acceptable if you were discharged for a service-related disability
- June 27, 1950 through Jan. 31, 1955 (Korean War): at least 90 total days, but less than 90 is acceptable if you were discharged for a service-related disability
- July 26, 1947 through June 26, 1950 (post-WWII period): 181 continuous days of service, but less than 181 is acceptable if you were discharged for a service-connected disability
- Sept. 16, 1940 through July 25, 1947 (WWII): at least 90 total days, but less than 90 is acceptable if you were discharged for a service-related disability
Requirements for National Guard and Reserve members
Eligibility for National Guard and Reserve members is similar and depends on the time period in which you served.
- Aug. 2, 1990 to present (Gulf War period to present): At least 90 days of active duty
- Any other time period in the National Guard: At least 90 days of non-training active-duty service, at least 90 days of active-duty service with at least 30 consecutive days or six credible years in the National Guard, after which you were discharged honorably or placed on the retired list
- Any other time period in the Reserve: at least 90 days of non-training active-duty service or six credible years in the Selected Reserve and at least one of the following has to be true:
- You were discharged honorably
- You were placed on the retired list
- You were transferred to the Standby Reserve or Ready Reserve (other than the Selected Reserve) after honorable service
- You are currently still serving in the Selected Reserve
Requirements for surviving spouses of military service members
You may qualify for the VA loan benefit if you are a surviving spouse of an Armed Forces member, depending on your circumstances. You are eligible if your spouse falls into one of the following categories:
- Is missing in action
- Is a prisoner of war
- Died while in service
- Died from a service-related disability
Surviving spouses only qualify for a VA loan if they did not remarry before December 16, 2003 or on or after their 57th birthday.
Occupancy requirements for a VA loan
In addition to your service requirements, there are occupancy requirements for VA home loans. The home must be your primary residence. You have 60 days from your closing date to occupy your home, though exceptions are made on a case-by-case basis.
Requirements to get a Certificate of Eligibility (COE)
A Certificate of Eligibility (COE) is a document from the VA that certifies to the VA loan lenders that you meet the eligibility requirements for a VA loan. As far as timing goes, a helpful VA loan tip is that you don’t need the COE before you start applying, but you will need it before the loan closes.
You’ll need to present specific documentation and information depending on your status.
- Veteran: A copy of your discharge or separation papers (DD214)
- Active service member: A statement of service signed by your commander, adjutant or personal officer that includes your name, Social Security number, date of birth, active duty start date, any lost time and the name of the person providing this information
- National Guard
- Activated National Guard member (current or former): A copy of your discharge documentation or DD214. If you have at least 90 days of active duty, including 30 consecutive days, you need one of the following: DD214 including 32 USC sections 316, 502, 503, 504 or 505 activation, annual point statement or DD220.
- Never-activated current National Guard member: A statement of service signed by your commander, adjutant or personal officer that includes your name, Social Security number, date of birth, active duty start date, total number of credible service years, any lost time and the name of the person providing this information.
- Discharged National Guard member who was never activated: Your Report of Separation and Record of Service (NGB Form 22) for all periods served as well as Retirement Points Statement (NGB Form 23) and proof of honorable service
- Reserve
- Activated Reserve member (current or former): A copy of your discharge documentation or DD214
- Never activated current Reserve member: A statement of service signed by your commander, adjutant or personal officer that includes your name, Social Security number, date of birth, active duty start date, total number of credible service years, any lost time and the name of the person providing this information
- Discharged Reserve member who was never activated: A copy of your latest annual retirement points statement and proof of honorable service
- Spouse of a veteran who died on active duty or was disabled during service. The veteran’s discharge papers (DD214), if possible, and one of the following depending on your situation:
-
- If you are receiving Dependency and Indemnity Compensation (DIC): Submit a Request for Determination of Loan Guaranty Eligibility—Unmarried Surviving Spouses (VA Form 26-1817)
- If you aren’t receiving DIC benefits: A completed application for DIC (VA Form 21P-534EZ), a copy of your marriage license and the veteran’s death certificate
You can request the above documents online through the Veterans’ service records archives if you need them.
How to request a Certificate of Eligibility
To get your COE, you need to request it from the Veterans Administration. You can request it online through the eBenefits platform. The VA notes that you’ll need to log in with a premium DS Logon account. Another option is to get it through your VA loan lender.
Lastly, you can submit your request by mail, but this option takes the longest. You will need to fill out the Request for a Certificate of Eligibility form (VA Form 26-1880) and mail it to your regional loan center. You can find the address of that on the form.
Lenders’ credit and income requirements
In addition to the VA loan eligibility requirements related to your service, you’ll also need to meet the credit and income requirements of the lender to be approved for the loan. The VA does not set the credit score, income, debt-to-income ratio (DTI) and other financial criteria for loan approval, and these requirements vary based on the VA lender.
Lenders review VA home loan applicants on a case-by-case basis to determine if the applicant merits receiving funds. In general, lenders focus on whether you have a reliable income and can take on the monthly payment for your loan amount.
There are no VA loan limits with full entitlement as long as you can afford the loan. And loans are available in all areas of the U.S. regardless of home price.
As mentioned, all mortgage lenders have different requirements, but here are some examples of companies on our list of the best VA loan lenders and the minimum credit score requirements they typically expect of borrowers:
- Rocket Mortgage: 620 (though 580+ may be accepted)
- Navy Federal Credit Union: No minimum credit score is specified, though the company will assess creditworthiness
- New American Funding: 580
- PenFed Credit Union: 620
- Veterans United: 620
- Lending Tree: Varies by the lending partner
The VA has requirements for the homeowner’s residual income — money left over after major expenses are paid — in order to receive the VA loan. These stipulations are designed to ensure the applicant will be able to afford the mortgage payments. Your own residual income requirements will depend on the size of your family, where you live and your mortgage loan amount.
How to apply for a VA loan
Unlike many other veteran benefits, you won’t be going through the VA to apply for a VA loan. Instead, you’ll apply through lenders that assess your finances and eligibility.
Though VA loans are different from conventional loans for a number of reasons, the process to apply for the loan is similar. As with a conventional loan, getting preapproved isn’t a requirement, but it is a good idea, especially in what is still a competitive real estate market.
You can apply to a handful of lenders to get preapproved, but make sure to choose some lenders that are VA-approved, because they’re more likely to fully understand VA loans. Before choosing a VA loan lender, get estimates from multiple lenders. Each is likely to have different requirements and interest rates, so shopping around can help you get the best rate. Be aware, though, that no lenders are formally affiliated with the VA, so steer clear of lenders who deceptively claim such a relationship.
Once you get preapproved through a lender, you can begin shopping for houses. Eventually, after you have an offer that is accepted and you have a lender choice, you will need to get a VA appraisal on the property — which is a requirement of all VA-backed home loans.
Once the appraisal is complete (as long as everything checks out), the next step is to close on the VA loan.
As mentioned earlier, you must have that COE document from the VA in hand by the time of closing. A VA funding fee must also be paid; it’s a one-time payment that the VA charges at closing. Its purpose is to help lower the costs of the loans program to U.S. taxpayers, who assume a certain risk with every VA loan the administration backs.
Can you apply for a VA loan if you don’t meet all the requirements?
There is some leeway in meeting the stipulations to qualify for a VA loan. A major area in which there may be flexibility is if you were discharged from service, rather than leaving on your own initiative. You generally won’t be able to get a VA loan if the discharge was dishonorable, although you may qualify for a discharge upgrade in some cases.
Discharges that shouldn’t disqualify you from getting a VA loan include those due to hardship or certain medical conditions and disabilities. You may also have consideration if you were discharged based on a reduction in force, early out (if you served at least 21 months of a two-year enlistment) or the convenience of the government (provided you served at least 20 months of a two-year enlistment).
If you aren’t sure if you qualify for this benefit based on your circumstances, you can contact your regional VA loan center for help.
VA loan requirements FAQs
Can you still be eligible for a VA loan if your service was interrupted?
You may still be eligible for a VA loan if your service was interrupted, but it depends on the reason. If you were discharged due to a hardship, certain medical condition or disability as a result of your service, you might still be eligible. You likely won't be eligible if you had a non-honorable discharge.
How long does it take to receive a COE?
It can take roughly a few weeks to a month to receive your Certificate of Eligibility. You or the lender need to submit a request for it to the Veterans Administration, which will process it and check eligibility. If you decide to request your COE by mail, it can take a little longer than doing it online, due to the need to add mailing time.
Who's eligible to get a VA Loan?
In short, veterans, current active duty service members, National Guard and Reserves members and surviving spouses of military service members may be eligible for a VA loan. Not everyone who fits those categories necessarily qualifies; the nature of your service and the health of your finances are also considered as part of the approval process.
Summary of our guide to VA loan requirements
VA loans are available to former and active military members of the Army, Navy, Marines and Air Force as well as National Guard, Reserves and Coast Guard members. You may also be eligible if you are an Academy Cadet or Midshipman, or are serving in the USPHS or NOAA. Surviving spouses of military members are also eligible.
Your eligibility depends in large part on your type of service and when you served. Generally, there are length of service requirements and, if you were discharged, it must have been an honorable discharge. But while VA loans are often easier to obtain than conventional mortgage loans, some financial considerations also come into play, such as your credit score and your ability to afford the payments on a VA loan.
A VA loan is a great benefit for military members because it allows them to receive a home loan with more favorable terms than traditional loans.
Alison Tobin is a personal finance news writer and editor. She covers news topics in the areas of savings, investing, real estate, taxes, insurance, and more. Her work has been featured in Yahoo!, Forbes, AP News, PropertyCasualty360, and various local publications across the United States.