Who Is Eligible for a VA Home Loan?
VA home loans are a benefit available only to eligible Veterans, military members, surviving spouses, and certain other groups and individuals. If you have VA loan eligibility, it likely means you’ve earned the home loan benefit through one of these eight U.S. service branches:
- Army
- Navy
- Air Force
- Space Force
- Marine Corps
- Coast Guard
- National Oceanic and Atmospheric Administration
- Public Health Services
Fact: The VA is the only organization that can determine whether you are eligible for a VA loan.
Your eligibility to apply for a VA loan has everything to do with service. And when it comes to eligibility, it’s the U.S. Department of Veterans Affairs, not your lender, that defines who’s eligible. Only the VA can determine whether your service has earned you these unique home loan benefits. To make the determination on your eligibility, the VA uses several factors: including your type of service, how long you’ve served, and acceptable discharge terms.
Wartime or Peacetime — When You Served Matters
Veterans eligible to apply for a VA loan fall into two categories: wartime and peacetime service.
Wartime. Veterans who served at least 90 days of active duty in World War II, the Korean War, or the Vietnam War may be eligible as long as they were released under conditions other than dishonorable. Veterans of these wars who served less than 90 days of active duty may also be eligible, however, discharge has to have been for a qualifying service-connected injury or hardship.
Gulf War Veterans with 24 months of continuous active duty and no dishonorable discharge may be eligible as well. Those who served at least 90 days or the full term assigned to active duty without a dishonorable discharge are eligible to apply. This includes Veterans who were discharged for hardship, early out, at the convenience of the Government, reduction in force, a condition that interfered with duty, or a compensable service-connected disability.
Peacetime. Veterans who served during periods of peacetime for at least 181 days of continuous active duty without a dishonorable discharge may also apply for a VA loan. Those who served in peacetime for less than 181 days of active duty may also be eligible as long as they were discharged for a service-connected disability. This applies to all Veterans who served from the following dates: July 26, 1947, to June 26, 1950, and from February 1, 1955, to August 4, 1964; enlisted soldiers who served from May 8, 1975, to September 7, 1980; and officers who served from May 8, 1975, to October 16, 1981.
Many Veterans Are Eligible for VA Loans
If you’re a Veteran, no matter when or where, there’s a good chance you’re eligible for a VA loan. Back in 2012, the VA announced it had guaranteed 20 million home loans since the program began in 1944. As you can imagine, since then, close to five million more Veterans have joined the ranks of homeowners who’ve used their VA home loan benefits to live the American Dream.
To apply for a VA home loan, your first step is to request a Certificate of Eligibility (COE) from the Department of Veterans Affairs. You must also have sufficient income and satisfactory credit, as per your lender’s requirements.
The COE verifies to your lender that you are eligible to apply for a VA loan. To qualify for a VA loan, in addition to adequate financials, you also must intend to occupy the home you purchase with your loan.
Advice: Veterans can visit the VA’s eBenefits site to apply for a COE, or ask their approved lender for help. Often the lender can receive an electronic COE in a matter of seconds through the VA’s LGY HUB. Ask your VA lender about this option.
Active Duty Service Members Can Earn Eligibility in As Few as 90 Days
If you are currently on active duty, your eligibility may be established in as few as 90 days of continuous active duty. In this case, a statement of service signed by your commanding officer will be used to obtain your COE. Veterans of the military use a slightly different method. If you are discharged or released from active duty, you can use discharge documents, known as DD214, to get your COE.
Reservists and National Guard Members Usually Need Six Years
Most service members in the Reserve or National Guard who are eligible for a VA loan will have completed six creditable years as a member of an active unit, attending required weekend drills and two-week active duty for training, plus meet one of the following criteria:
- You were discharged with an honorable discharge.
- You were placed on the retired list.
- You were transferred to the Standby Reserve or an element of the Ready Reserve other than the Selected Reserve after service characterized as honorable service.
- You continued to serve in the Selected Reserve.
Six years may seem like a long time to wait for VA home loan benefits, but it may not take that long for certain Reservists and Guard members. If you were called up for active duty and meet the active duty minimum service requirements, you might already be eligible. For instance, if you served 90 days of active duty between August 2, 1990, and now, you likely have earned the benefit. Reservists and Guard members might also have the perk if they were discharged for a service-connected disability before the six years are up.
Additionally, National Guard members can also earn VA home loan benefits if they serve at least 90 full-time active-duty days, with 30 of those days consecutively. This is a recent change for Guard members who responded to emergencies like COVID-19 duty, but the rule is retroactive.
Surviving Spouses May Be Eligible
Surviving spouses may earn eligibility too. If you are a surviving spouse, you may be eligible if you meet the following criteria:
- You have not remarried (or have remarried after age 57 on or after 12/16/2003 and have applied for eligibility by 12/15/2004).
- Your spouse died in service or from a service-related disability, OR is missing in action or a prisoner of war.
- Your spouse was totally disabled for a certain amount of time (10 years prior to death or not less than five years from the date of discharge or release from active duty to the date of death) and was eligible for compensation at death.
PHS and NOAA Officers Can Earn Home Loan Benefits, Too
Individuals with service in certain other organizations may also qualify for a VA home loan. This includes Public Health Service officers and officers of the National Oceanic & Atmospheric Administration, merchant seamen with World War II service, and others.
Military Academy Cadets and Midshipmen Can Become VA Eligible
Cadets at the United States Military, Air Force or Coast Guard academies, as well as midshipmen at the United States Naval Academy, are also eligible to apply for a VA home loan.
For more on VA loan eligibility, check out our other articles on this topic. If you’re ready to start your VA loan, get in touch with our team now.
