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VA Loan Eligibility Requirements

VA Loan Requirements Focus on Military Status, Credit, and Property

VA loans can help make buying or refinancing a home more affordable for veterans, active-duty and reserve military personnel, and some surviving spouses—if they all meet certain eligibility criteria. Backed by the Department of Veterans Affairs (VA), VA loans offer lower interest rates and flexible financial requirements, and they usually require no down payment.

Read below to explore VA loan eligibility guidelines and requirements to determine if you qualify.

How To Qualify for a VA Home Loan

VA home loan eligibility typically requires you to meet guidelines set by the VA and individual lenders, including:

Military status
Credit and income requirements
Property requirements

Here's a closer look at these qualification standards.

Military Status

Many veterans, active-duty and reserve/National Guard personnel, and surviving spouses are eligible for VA loans. Eligibility for veterans is generally based on meeting minimum active-duty service requirements and receiving an honorable discharge. Veterans discharged for a service-related disability may also be eligible for a VA loan.

You'll need to get a Certificate of Eligibility (COE) the first time you apply for a VA loan. You may also need this certificate when you buy another home or refinance your mortgage with a VA loan. Freedom Mortgage will help you verify your VA loan COE and all other VA requirements, so no need to worry about it now.

Minimum military service requirements set by the VA include:

Active-Duty Service Members	You must have served for at least 90 continuous days.
Veterans	Veteran eligibility depends on when you served. To explore dates, check out the Department of Veterans Affairs' guidelines on loan eligibility. Typically, an honorable discharge is required.
National Guard	National Guard members must meet at least one of these service requirements: Served at least 90 days on active duty (non-training) Served at least 90 days on active duty, including at least 30 consecutive days Served six years in the National Guard and are still serving Honorably discharged or retired after six years of service and meet the active duty requirement
Reserve Members	You must meet at least one of these requirements as a Reserve member: Served on active duty for at least 90 days that weren't training Served for six years in the Selected Reserve, and you're still serving Honorably discharged or retired after serving for six years in the Selected Reserve and meet the active duty service requirement
Eligible Surviving Spouses	You could be considered an eligible surviving spouse if the veteran is missing in action, a prisoner of war, or died in service or from a service-related disability. There are rules about surviving spouses remarrying that can affect eligibility, too. Please see the VA website for more information.

Credit and Income Requirements

While the VA doesn't set specific credit score guidelines, lenders have their own requirements. On average, lenders require a 620 score or higher, but Freedom Mortgage requires a minimum credit score of just 550 to qualify for a VA loan. It's just one of the ways we thank our veterans for their service.

The VA also doesn't have income limits for loan programs, but lenders often require your debt-to-income ratio (DTI) to be 41% or less to qualify for a VA loan.

Property Requirements

The home you're purchasing or refinancing with a VA loan must be a primary residence, not a vacation home or an investment property.

You'll also need to get a VA-mandated home appraisal and inspection to ensure the home's sale price isn't more than its current market value. The appraisal will also determine that the home meets VA property guidelines and is safe, sanitary, and structurally sound. These guidelines include having a:

Clean water supply
Structurally sound roof and foundation
Permanently installed heating system

The VA doesn't require a private home inspection, although it's probably a good idea to get one. That way, you can get a more detailed analysis of the property's condition. Finally, the VA requires all homes to have a pest inspection and a water safety test for homes with well water.

How Much Does It Cost To Get a VA Home Loan?

There are several VA home loan benefits, and one of the most appealing benefits is affordability. But there will still be some upfront closing costs and fees to consider.

VA funding fee: The VA funding fee is a one-time fee that's often 0.5%–3.3% of the loan amount. The exact amount will depend on your VA loan type, if you make a down payment, and whether it's your first VA loan. Some eligible borrowers may be exempt from the VA funding fee, including veterans receiving disability compensation from the VA. If you're not sure if you qualify for a VA funding fee waiver, Freedom Mortgage will help you find out and make sure you save every eligible dollar you're entitled to.
Closing costs and fees: You'll need to pay some closing costs, like lender fees, title insurance, and fees for any discount points you may use. These costs can be paid at closing by the buyer, paid by the seller through seller concessions, or rolled into the loan.
Down payment: Even though the vast majority of VA loans don't require a down payment, if you don't have full entitlement (more on this later), you may still to make a down payment. You can also choose to make a down payment, even if it's not required, to lower your funding fee and monthly mortgage payments.

What if You Don't Meet VA Home Loan Requirements?

If you don't meet VA loan eligibility requirements now, that doesn't mean you're out of options or that you won't qualify in the future. Here are some steps you can take today:

Improve your credit: Paying bills on time, reducing debts, growing your savings, and increasing your income can boost your credit score.
Explore other loan options: Other government-backed loan programs, including those through the FHA or USDA, can also offer flexible credit requirements and be a good fit if you don't have a lot of savings.
Try again in the future: If you need additional service time to qualify, you could apply for a VA loan once you meet that requirement. Or if you aren't eligible due to your discharge status, you could try appealing it and apply if you receive a favorable update.

Qualifying for a VA loan isn't the only path to homeownership. But if a VA loan is the best mortgage for your financial goals and situation, check your eligibility with Freedom Mortgage over time to see if your qualification status has changed.

VA Home Loan Eligibility FAQs

To help you navigate VA mortgage eligibility, here are answers to some common questions:

How Do You Get a Copy of Your COE?

You can get a copy of your Certificate of Eligibility (COE) through the VA's online portal, by mail, or through your lender, which can request it on your behalf. Freedom Mortgage is standing by to help you with your COE when you're ready!

What Do You Need To Apply for a VA Home Loan?

When applying for a VA loan, you'll typically need your COE, proof of service, (DD-214) details about the property you're buying, and financial information like recent pay stubs, W-2 forms, and tax returns.

Are There VA Home Loan Limits?

There are no VA loan limits if you're an eligible veteran, active-duty service member, or surviving spouse with full entitlement. Full entitlement generally means you've never used your VA loan benefit before. However, it may also apply if you previously used the benefit but sold the property and paid the loan in full or repaid the loan after a short sale or foreclosure.

How Can You Check VA Home Loan Eligibility?

To check your VA loan eligibility, you should review service requirements and then obtain your COE to confirm you meet those requirements. You should also understand your lender's specific requirements for financial qualification. Again, Freedom Mortgage is happy to help with this whenever you're ready. And if you don't meet VA loan requirements, we can help you find the right loan for your situation.

You're Eligible for a VA Loan: What's Next?

If you check all of the boxes for VA loan eligibility and want to buy or refinance a home with a VA-backed home loan, the next step is to apply.

Freedom Mortgage can help you navigate your options, see if you're prequalified, and move you through the application process. If you're ready to move forward and save money with a VA loan, get started today.