VA Home Loan Eligibility

| January 2, 2012

The eligibility requirements for a VA Home Loan are different from the requirements of a Conventional Loan or FHA Loan. Anyone including a military veteran is eligible for a Conventional Loan or FHA Loan but only certain Veterans of the US Military or active duty personnel are eligible for a VA Home Loan. How do you know for sure that you are eligible?

Eligibility requirements are pretty cut and dry and receiving a copy of the Certificate of Eligibility is a quick process if the veteran knows what accompanying paperwork to send in. To begin the process of applying for a VA Home Loan you will need to obtain a copy of your Certificate of Eligibility to give to the potential lender. This process is simple starting either online or by requesting VA form 26-1880 which is the form needed to request your certificate by mail. You will need a copy of your DD214 if you are a veteran or a Current Statement of Service if you are on active duty or are a member of the Selected Reserve or National Guard that has never been activated for federal service.

The paperwork required is a little different if you have been discharged from the Selected Reserve or National Guard and have never been activated. You will need either NGB Form 22 or NGB Form 23. For Selected Reserve you will need the most recent copy of your retirement points acquired and will need to provide evidence of honorable service along with proof of your character of service. These documents can be acquired from the Veterans Administration for submission with the Certificate of Eligibility request VA Form 26-1817.

Under some circumstances the surviving spouse of a service member that passed away while on active duty will be eligible for a VA Home Loan. If the surviving spouse is eligible to receive Dependency and Indemnity Compensation they will automatically meet the requirements for eligibility for the VA Home Loan and will just have to send in a copy of their award letter. Even if the surviving spouse is not receiving the DIC entitlement, a spouse can apply by sending in a copy of the veteran’s DD214, a copy of the veteran’s death certificate and a copy of their marriage certificate. If the surviving spouse is approved for eligibility, they will also be entitled to the Dependency and Indemnity Compensation because the two benefits have identical requirements.

Being eligible for a VA Home Loan is not a guarantee of mortgage approval. The veteran still has to be able to pass the lender’s requirements for loan qualification to actually be able to buy a home with the VA Home Loan. The VA Home Loan is simply guaranteeing the lender that if they were to approve the loan for the veteran that a certain amount of that loan is backed by the US Government in case of foreclosure. So just like the FHA or Conventional Home Loan, when a veteran is applying for their loan they will have to meet certain income and credit requirements.

Category: Home Loan

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