Understanding VA loan eligibility
If you’re considering a VA loan, you’re likely wondering if you’re eligible. Millions of Veterans and service members are eligible for VA home loans, but understanding the requirements can feel overwhelming. This overview includes everything you need to know about VA loan eligibility, from service requirements to credit scores and property types.
Who Qualifies for a VA Loan?
Generally, 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 your lender's credit and income requirements.
Basic Service Requirements
You may qualify for a VA loan by meeting one or more of the following requirements:
Veterans
- Served at least 90 consecutive days of active duty during wartime, OR
- Served at least 181 continuous days of active duty during peacetime, OR
- Were discharged or released from active duty for a service-connected disability
Active-Duty Service Members
- Currently on active duty with at least 90 continuous days of service
National Guard and Reserve Members
- Completed 6 years of service in the Selected Reserve or National Guard, OR
- Were activated for at least 90 days (with at least 30 consecutive days)
Surviving Spouses
- Un-remarried spouse of a Veteran who died in service or from a service-connected disability
- Spouse of a service member missing in action or prisoner of war
- Surviving spouse who remarried on or after age 57, and on or after December 16, 2003
Discharge Requirements
Your discharge status plays a crucial role in VA loan eligibility. Generally, you need an honorable or general discharge. However, other discharge types may still qualify:
- Medical discharge
- Hardship discharge
- Early out
- Convenience of the government
- Force reduction
- Certain service-connected disabilities
If you received an other than honorable, bad conduct, or dishonorable discharge, you may still be eligible after a discharge review or upgrade process.
COE: Your Key to VA Loan Benefits
A Certificate of Eligibility (COE) verifies that you meet the VA's minimum service requirements for a home loan. This document provides lenders with three crucial pieces of information:
- Confirmation of your eligibility status
- Your available VA loan entitlement amount
- Whether you're exempt from the VA funding fee
How to Obtain Your COE
There are three ways to get your Certificate of Eligibility:
Through Your Lender (Fastest Method)
- Most VA-approved lenders can obtain your COE electronically within minutes
- Often requires only your Social Security number and date of birth
- No need to gather documents or fill out forms
Online Through VA.gov
- Apply directly on the VA's website
- Processing typically takes 3-5 business days
- May receive instant approval if VA has sufficient records
By Mail
- Complete VA Form 26-1880
- Mail to your regional VA office
- Processing takes 4-6 weeks
Required Documentation by Service Type
Credit Score and Financial Requirements
There are some financial requirements lenders will consider.
VA Loan Credit Score Requirements
The VA doesn't set a minimum credit score requirement, leaving this decision to individual lenders. Individual VA lenders have their own criteria, however:
- Lower scores may be considered with compensating factors
- No credit score may be acceptable with alternative credit documentation
Credit score alone doesn't determine eligibility. Lenders evaluate your complete financial picture, including:
- Payment history trends
- Recovery from past financial difficulties
- Reasons behind credit challenges
- Current financial stability
Income and Employment Requirements
VA loans don't have minimum or maximum income limits, but you must demonstrate:
Stable Income Sources
- Military pay and allowances
- Civilian employment (typically 2-year history)
- VA disability compensation
- Military retirement pay
- Social Security benefits
- Spouse's income
- Self-employment income (with documentation)
Debt-to-Income Ratio (DTI)
- Higher ratios may be acceptable with strong residual income
- Calculated by dividing total monthly debt by gross monthly income
Residual Income Requirements
Residual income is the money left after paying all major monthly expenses. The VA's residual income requirements vary by:
- Geographic region
- Family size
- Loan amount
This unique VA requirement helps ensure borrowers can maintain quality of life after homeownership and often offsets higher DTI ratios or lower credit scores.
Property Requirements and Loan Limits
VA loans can be used for various property types, but all must serve as your primary residence.
Eligible Property Types
Property types may include:
- Single-family homes
- Condominiums (must be VA-approved)
- Manufactured homes (must meet VA standards)
- Multi-unit properties (up to 4 units if you occupy one)
- New construction homes
Occupancy Requirements
- Must intend to occupy as primary residence
- Generally must move in within 60 days of closing
- Exceptions for active-duty deployments
- Spouse occupancy can satisfy requirement in certain situations
VA Loan Limits for 2025
Veterans with full entitlement have no loan limits. You can borrow what you qualify for based on income and credit. Veterans with remaining entitlement should check their county's conforming loan limits.
The VA doesn't limit how much you can borrow, but guarantees a portion of the loan. Your lender determines the maximum loan amount based on:
- Credit score and history
- Income and employment
- Assets and reserves
- Property value
VA Funding Fee and Exemptions
The VA funding fee helps sustain the loan program for future Veterans.
Understanding the VA Funding Fee
The fee ranges from 0.5% to 3.3% of the loan amount, depending on:
- Down payment amount
- First-time or subsequent use
- Service category
- Loan type (purchase, refinance, etc.)
Who's Exempt from the VA Funding Fee?
You don't pay the funding fee if you're:
- Receiving VA disability compensation
- Eligible for disability compensation but receiving retirement/active duty pay instead
- A Purple Heart recipient on active duty
- A surviving spouse of a Veteran who died in service or from service-connected disability
The funding fee can be financed into your loan amount or paid at closing.
Special Eligibility Situations
National Guard and Reserve Members
Guard and Reserve members have unique paths to eligibility:
Traditional Drilling Members:
- Need 6 years of honorable service
- Must have satisfactory participation in drills and training
- Document with NGB Form 22 or 23
Activated Members:
- Title 10 activation for 90+ days (30 consecutive) may qualify sooner
- Title 32 activation for qualifying emergencies may count
- Use DD Form 214 for activation periods
Multiple Periods of Service
Veterans with complex service histories (active duty, then Reserve, breaks in service) can combine periods for eligibility. Each period requires proper documentation.
Previous VA Loan Use
Your VA loan benefit is reusable. You can:
- Restore entitlement after selling and paying off a VA loan
- Have remaining entitlement for another purchase
- Transfer entitlement in qualifying situations
VA Loan Eligibility FAQs
Can I get a VA loan with bad credit?
Yes, VA loans are often possible with less-than-perfect credit. While most lenders prefer 620+ credit scores, consider:
- Some lenders accept scores as low as 580
- Bankruptcies require 2-year waiting period (Chapter 7)
- Foreclosures require 2-year waiting period
- Recent credit improvements carry significant weight
Do I need a down payment?
Generally, no down payment is required for VA loans unless:
- Purchase price exceeds appraised value
- You exceed county loan limits with partial entitlement
- Your lender requires one based on credit factors
Can I use my VA loan while on active duty?
Yes, active-duty members can use VA loans after 90 days of continuous service. This allows you to establish homeownership before separation.
What if I have a less-than-honorable discharge?
Don't assume you're ineligible. You can:
- Apply for a discharge upgrade
- Request a character of discharge review
- Submit for individual evaluation
Can I have more than one VA loan at a time?
Yes, if you have remaining entitlement. Your entitlement amount depends on:
- County loan limits
- Current VA loan balance
- Previous VA loan history
How long does eligibility verification take?
- Through a lender: Often within minutes
- Online application: 3-5 business days
- Mail application: 4-6 weeks
Steps to Verify Your VA Loan Eligibility
There are a few things you should do to verify your VA loan eligibility:
Gather Your Service Documentation
- Locate your DD Form 214 or service statements
Identify your service dates and discharge type
Check Basic Requirements
- Review service length requirements for your era
Confirm acceptable discharge status
Obtain Your COE
- Contact a VA-approved lender for fastest processing
Or apply online at VA.gov
Review Your Credit
- Check your credit score
- Review credit reports for accuracy
Address any errors or issues
Calculate Your Buying Power
- Calculate residual income
- Get pre-approved with a VA lender
Determine your DTI ratio
Related VA Loan Resources
Eligibility Topics
- National Guard and Reserve Eligibility
- Surviving Spouse Eligibility
- Credit Score Requirements
- VA Home Loan Guidelines
Tools and Resources
Start Your VA Loan Journey
Understanding your eligibility is just the first step. VA loans offer unmatched benefits for those who qualify, including zero down payment options, no PMI, and competitive interest rates.
Ready to verify your eligibility? Get started today.
Remember, checking your eligibility doesn't obligate you to move forward, and won't impact your credit score.
