Section 2: VA Loan Eligibility Requirements

Eligibility For a VA Loan

In general, to be eligible for a VA loan, you or your spouse must meet the minimum service requirements set by the Department of Veterans Affairs (VA), have a valid Certificate of Eligibility (COE) and satisfy the lender's credit and income requirements. You may be eligible for a VA loan by meeting one or more of the following requirements:

• You served 90 consecutive days of active service during wartime.
• You served 181 days of active service during peacetime.
• You have 6 years of service in the National Guard or Reserves.
• You are the spouse of a service member who has died in the line of duty or as a result of a service-related disability.

Verifying Your VA Loan Eligibility Status

Lenders need what's known as a Certificate of Eligibility (COE) to verify if a Veteran meets the minimum service requirements. Your COE provides the lender with confirmation that you qualify for VA loan benefits.

For most Veterans, this is an easy step. Your lender can typically pull your COE with only your social security number and date of birth.

In some cases, the process may be more complex. However, the important piece is you don't need this document before applying for a VA loan.

Speak with a Home Loan Specialist to get your COE today. The process typically takes minutes to complete and ensures your home financing moves forward without delays.

The three ways you can obtain your COE for a VA loan are:

1. Applying through a VA approved lender
2. Applying online through the VA's eBenefits portal
3. Applying by mail with VA Form 26-1880

According to the VA, nearly all COE requests come electronically, and about two-thirds get issued immediately. If additional documentation is required, it's typically a DD Form 214 for regular military and the NGB Form 22 and NGB Form 23 for National Guard and Reserves. 

How Spouses Can Verify Their VA Loan Eligibility

Surviving spouses will also need a COE to verify eligibility and utilize their VA loan benefits. Getting a COE as a surviving spouse depends on whether or not you're receiving Dependency and Indemnity Compensation. Spouses receiving Dependency and Indemnity Compensation benefits must fill out VA Form 26-1817 (Request for Determination of Loan Guaranty Eligibility – Unmarried Surviving Spouses) and obtain a copy of the Veteran's separation paperwork, such as a DD Form 214. If you're not receiving Dependency and Indemnity Compensation benefits, you'll need to apply via VA Form 21P-534EZ and submit to your state's VA Pension Management Center (full list here). Additionally, you'll need to provide a copy of your marriage license, the Veteran's death certificate (or DD Form 1300 – Report of Casualty) and the Veteran's separation paperwork. You can request separation paperwork from the U.S. National Archives and Records Administration. Surviving spouses can reach out to a Orbit Home loan specialist with questions or for more details.

*Don’t meet the minimum requirements? You still may be eligible: talk with an Orbit Home Loan specialist today.  (CLICK)

Down Payments

No down payment, no mortgage insurance. These are the biggest advantages to a VA loan. You don’t need a down payment. None whatsoever. Most mortgage programs, such as FHA and convectional loans, require at least 3.5% to 5% down.

Start your application now (CLICK)

Documents Your Lender May Require

- W2s or 1099’s
- Bank Statements
- Pay Stubs
- Asset Statements
- Liability Statements
- Legal ID

-Service Related Documents

Service Type	Required Documents
Veteran	DD Form 214 (Report of Separation)
Current or Former Activated National Guard or Reserves	DD Form 214 (Report of Separation)
Active Duty	Statement of Service
Current National Guard or Reserves (Never Activated)	Statement of Service and an allocated points statement
Discharged National Guard (Never Activated)	NGB Form 22 (Report of Separation and Record of Service) and NGB Form 23 (Retirement Points Accounting and proof of the character of service)
Discharged Reserves (Never Activated)	Army Reserve: DARP Form FM 249-2E or ARPC Form 606-E. Navy Reserve: NRPC 1070-124. Air Force Reserve: AF 526. Marine Corps Reserve: NAVMC HQ509 or NAVMC 798. Coast Guard Reserve: CG 4174 or 4175

 
VA Lender Requirements 

Credit and Income

The VA does not set a minimum credit score requirement for VA loan eligibility, but lenders typically do. Because of this, VA loan credit score requirements vary by lender, with most lenders typically requiring a 620-mortgage credit score to obtain financing. In addition to credit score, the VA requires qualified Veterans to maintain a certain amount of income left over each month after paying all major expenses. The excess, known as residual income, should be enough to cover typical family needs, such as food, transportation and medical care. By enforcing residual income requirements, the VA increases the chances of borrowers earning sufficient income to meet all financial obligations and ensures borrowers have a cushion in the event of an emergency. Alongside residual income, lenders also consider your debt-to-income (DTI) ratio. DTI and residual income give lenders a holistic look at your purchasing power and ability to qualify for a VA loan.

Complete the application (CLICK)

VA Lender Requirements

Although the VA determines the guidelines for VA loan eligibility, private lenders who finance the home typically have an additional set of requirements borrowers must satisfy. These typically include sufficient reliable income to repay the loan, acceptable levels of debt, and a credit score that meets the lender's credit requirements.

Ready to see if you're eligible for a VA loan? Start your VA loan with Veterans United and speak with a home loan specialist today.

How to Apply for a VA Loan

Get started today with one of the best and most secure ways possible. Here are Orbit Home Loans we have a trusted team ready to help you find your dream home. Talk with you trusted Orbit Home Loans broker that knows VA loans and how to get the most from this hard-earned benefit. The process typically starts with getting pre-approved, which can often be done in minutes using your phone, laptop or tablet. 

Loan pre-approval is a key first step before making an offer on your dream home. Having that pre-approval letter gives you a clear sense of your buying power and shows sellers and listing agents you have what it takes to get to closing. 

Questions about whether you qualify? (CLICK)