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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
| Veterans and Active-Duty Service Members | |
|---|---|
| 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 |
| National Guard and Reserve Members | |
|---|---|
| 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
†The information provided is for educational purposes only and should not be construed as financial advice. Experian cannot guarantee the accuracy of the results provided. Your lender may charge other fees which have not been factored in this calculation. These results, based on the information provided by you, represent an estimate and you should consult your own financial advisor regarding your particular needs.
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Frequently Asked Questions
One of the biggest benefits of VA loans: You don't need mortgage insurance because the VA guarantees the loan. If you make a down payment of less than 20% on a conventional mortgage, you're generally required to buy private mortgage insurance (PMI). PMI protects the lender if you default on the loan and is often rolled into your monthly mortgage payment. Eliminating PMI can shave several thousand dollars a year off your mortgage payments.
All VA loans require a certificate of eligibility proving your or your spouse's service qualifications. Other documentation for a VA loan may vary depending on the lender, but typically includes:
- A copy of your Social Security card
- Identification, such as a government-issued photo ID or a birth certificate
- Proof of income, such as your tax returns, recent pay stubs, or W-2 or 1099 forms
- Recent bank statements for your checking and savings accounts
- Investment account statements, including retirement accounts, brokerage accounts, certificates of deposit and other assets that could be used to help repay the loan
- List of your outstanding debts
- Ongoing expenses such as child or spousal support
The annual percentage rate (APR) for a VA loan can be a percentage point or more below the APR on a traditional mortgage loan. That could save you tens of thousands of dollars over the course of a 30-year mortgage.
For example, suppose you put 20% down on a conventional 30-year fixed-rate mortgage for $250,000 at 6.35% APR—the average as of August 29, 2024, according to Freddie Mac. You'd have a monthly payment of $1,552.80 and pay a total of $559,009.71 over the life of the loan. If you get a VA loan with a 5.35% APR, however, you'd pay $1,425.16 per month and a total of $513,057.86 over the loan term, saving more than $45,000.
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.