VA Loan Requirements
Quick Answer
Military service members, veterans and spouses may be eligible for loans from the Department of Veterans Affairs. To get a VA loan, you’ll need to meet requirements for occupancy, credit and income. You’ll also need a certificate of eligibility.
Would you like to buy a home on better financial terms than a conventional mortgage loan offers? If you're a current or former U.S. service member, or the spouse of one, a U.S. Department of Veterans Affairs (VA) loan could help.
A VA loan typically has lower interest rates than conventional mortgages and may not even require a down payment. Learn who qualifies for a VA loan, how to apply and what documents you'll need.
Who Can Get a VA Loan?
VA loans are available to current and former military service members, including National Guard and reserve members, who fit the VA's criteria for length and nature of service. Minimum service requirements vary based on the date of service. Military veterans must have a discharge that is not dishonorable.
Spouses or surviving spouses of military service members, including those disabled, missing or killed in action, may also be eligible for VA loans.
Learn more: What Is a VA Loan?
Minimum Service Requirements
| Dates of Service | Minimum Active-Duty Service Requirement |
|---|---|
| Currently on active duty | 90 continuous days |
| September 16, 1940 - July 25, 1947 | 90 total days |
| July 26, 1947 - June 26, 1950 | 181 continuous days |
| June 27, 1950 - January 31, 1955 | 90 total days |
| February 1, 1955 - August 4, 1964 | 90 total days |
| August 5, 1964 - May 7, 1975, or February 28, 1961 - May 7, 1975, if served in the Republic of Vietnam | 90 total days |
| May 8, 1975 - September 7, 1980, or May 8, 1975 - October 16, 1981, if served as an officer | 181 continuous days |
| September 8, 1980 - August 1, 1990, or October 17, 1981 - August 1, 1990, if served as an officer | 24 continuous months, or the full period (at least 181 days) if called to active duty |
| August 2, 1990 - present | 24 continuous months, or the full period (at least 90 days) if called or ordered to active duty |
| Dates of Service | Minimum Service Requirement |
|---|---|
| August 2, 1990 - present | 90 continuous days of active duty; does not include active duty for training |
| Any time period |
Six creditable years in the selected reserve or National Guard. In addition, at least one of the following must be true:
|
VA Home Loan Requirements
Applicants must meet three primary criteria to get a VA loan.
- You must obtain a Certificate of Eligibility (COE) from the VA.
- You must have a stable source of income.
- You must have adequate credit.
Certificate of Eligibility
A Certificate of Eligibility (COE) from the VA confirms that you meet the military service criteria for VA home loans. You can apply for a COE at the VA website or by mail; your lender may also request a COE for you.
To get a COE, you'll need to provide documentation of your service. This generally includes a copy of your discharge or separation papers (for veterans) or a statement of service (for current service members).
Income
VA loans are backed by the federal government, but they're issued by banks, credit unions and other financial institutions. Within VA guidelines, lenders can set their own financial criteria for issuing VA loans.
VA lenders want proof of enough steady income to make the monthly loan payments and will examine your debt-to-income ratio (DTI). Your DTI reflects how much of your monthly gross income goes toward debts such as student loan or car payments. Most VA lenders require a DTI ratio of 41% or less.
Credit Score
Within VA parameters, lenders can set their own credit score requirements for VA loans, which are typically more lenient than those for conventional mortgage loans. Still, VA lenders usually prefer FICO® Scores☉ of 670 or higher (credit considered good or better). Borrowers with lower credit scores may be charged higher interest rates. They may also be required to get adjustable-rate mortgages (ARMs), which could mean fluctuating payments and interest rates.
Learn more: Steps for Moving Your Credit Score From Fair to Good
Occupancy
You can use a VA loan to buy a house or a condo, build a new home, or renovate or add on to an existing home. The home must be your primary residence, not a second home or investment property. Homes must be appraised to confirm they meet VA standards.
How to Apply for a VA Loan
Follow these steps to apply for a VA loan.
- Confirm your eligibility and get a COE. Requesting a COE through your lender or online is generally the fastest way to get one.
- Look for VA lenders. Check with banks and credit unions or contact your local VA Regional Loan Center to find a lender in your area.
- Get prequalified. Mortgage prequalification gives you an estimate of how much you can borrow. Since prequalification involves only a soft credit inquiry, it won't ding your credit score the way a hard inquiry can. Getting prequalified for both VA loans and conventional mortgages from several lenders will give you the most options.
- Compare loans and choose a lender. Once you've done some reconnaissance, use Experian's mortgage calculator to see how different interest rates affect your loan cost. When comparing loan terms, also consider origination fees and closing costs, including VA funding fees, which can be up to 3% of the amount financed.
Mortgage calculator
Frequently Asked Questions
The Bottom Line
Before applying for a VA loan, review your credit report and check your credit score to see where you rank. If your credit score needs work, take action to get it in fighting shape. Paying down debt, bringing late accounts current and paying bills on time may help improve your credit fast, so you can accomplish your mission: buying a home.
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About the author
Karen Axelton
Karen Axelton specializes in writing about business and entrepreneurship. She has created content for companies including American Express, Bank of America, MetLife, Amazon, Cox Media, Intel, Intuit, Microsoft and Xerox.
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