2023 VA Loan Eligibility Requirements

Are you a Veteran or Service Member Looking to buy a home? VA home loans are the most attractive mortgage type on the market. VA loan eligibility separates who can qualify and who wishes they could qualify. You must demonstrate the necessary service time and obtain a valid Certificate of Eligibility in addition to satisfying your lender’s credit and income requirements.

What are the requirements to get a VA loan?

You may qualify for a VA loan by meeting one or more of the following requirements:

• You served 90 consecutive days of active service during wartime.
• You served 181 days of active service during peacetime.
• You have 6 years of service in the National Guard or Reserves or served 90 days (at least 30 of them consecutively) under Title 32 orders.
• You are the spouse of a service member who died while serving or due to a service-related disability.

You may be eligible for a VA loan even if you don’t meet the basic service requirements. Whether or not depends on your discharge type – honorable, general (under conditions), and other than dishonorable all make up categories of criteria that could lead to eligibility:

• You were discharged for hardship, at the convenience of the government, or a reduction in force.
• You were discharged for a medical condition or service-connected disability.
• You were discharged for early-out and served at least 21 months of a 2-year enlistment.

If you’re unsure of your service status, we can help you find out where you stand.

Verifying Your VA Loan Eligibility Status

A Certificate of Eligibility (COE) is used by lenders to confirm you meet the necessary service requirements – and this can often be obtained quickly with just your social security number and date of birth. However, even if it takes more effort in some cases, having that COE isn’t required before submitting an application.

Speak with us today to get your COE today. The process typically takes minutes to complete and ensures your home financing moves forward without delays.

Ways of Getting Your COE

The three ways you can obtain your COE for a VA home loan are:

1. Six Pillar Lending can pull your COE
2. Applying through the VA’s eBenefits portal
3. Applying by mail with VA Form 26-1880

The VA reports that almost all Certificate of Eligibility applications are electronically submitted and over two-thirds receive approval instantly. Should additional documentation be necessary, veterans from regular forces will need a DD Form 214 while National Guard or Reservist service members must present their NGB Forms 22 and 23 to confirm eligibility.

However, this isn’t always the case. See the required forms for each service type below.

Documents Your Lender May Require

Need help determining eligibility? Speak with us today ›

Surviving Spouses Can Verify Their VA Loan Eligibility

If you’re a surviving spouse of a Veteran, obtaining your Certificate of Eligibility (COE) from the VA is key to taking advantage of your loan benefits. This certificate serves as evidence that shows whether or not you meet all eligibility requirements and documents the amount guaranteed by the government in support of your loan application.

To gain access to this document, spouses receiving Dependency and Indemnity Compensation must submit an official request (VA Form 26-1817) along with their deceased partner’s separation paperwork like DD214 forms – these will help provide important insight into verifying eligibility for any veteran home loans.

If you’re looking to access Dependency and Indemnity Compensation benefits, take a look at VA Form 21P-534EZ and submit it to your state’s designated Pension Management Center.

To get started on this process, make sure that you have copies of the Veteran’s marriage license, death certificate (or DD Form 1300 – Report of Casualty) as well as their separation paperwork ready for submission. A full list of these Centers can be found here (full list here).

You’ll need to provide a copy of your marriage license, the Veteran’s death certificate (or DD Form 1300 – Report of Casualty), and the Veteran’s separation paperwork.

You can request separation paperwork from the US National Archives and Records Administration.

If you’re still unsure or would like some help navigating through this process, surviving spouses can reach out to a VA loan specialist with questions or for more details.

VA Lender Requirements

Securing a VA loan can be an exciting step in the home-buying journey, but it’s important to meet both federal and lender criteria. Along with fulfilling any service commitments required by the Veterans Administration, prospective borrowers must also demonstrate steady income sufficient to cover their costs – as well as manageable levels of debt and good credit standing according to each individual lending institution’s guidelines.

Six Pillar Lending works with many different VA lenders, all of which have different criteria and requirements.

Credit and Income

The VA does not set a minimum credit score requirement for VA loan eligibility, but lenders typically do. Because of this, VA loan credit score requirements vary by lender, with most lenders typically requiring a 620 mortgage credit score to obtain a mortgage.

But with Six Pillar Lending, we have access to VA lenders who will issue VA home loans to eligible borrowers with credit scores down to 580 and sometimes even lower depending on the circumstance.

For Veterans to be qualified for a VA loan, they must possess not only an adequate credit score but sufficient residual income – the amount of money remaining after paying all major expenses. This financial cushion can make it easier to cover vital family costs such as groceries, transportation, and healthcare services.

This is more commonly known as a potential borrower’s DTI or debt-to-income ratio. Typical home loans have requirements of no more than 41% (monthly income/monthly recurring debt payments), but with a VA home loan, eligible borrowers can go as high as 50% or even 55% under some circumstances.

VA’s residual income requirements set borrowers up for sustainable financial health by ensuring they have the capacity to handle unexpected expenses and stay current on payments.

How to Apply for a VA Loan

For veterans and service members considering a VA loan, starting the process doesn’t require complete eligibility knowledge. The pre-approval stage provides an overview of a potential borrower’s ability to secure one of these favorable loans.

The VA loan process typically takes 15-30 days once you’re under contract on a home, although every buyer’s situation is different.

Here’s a look at the three basic steps to applying for a VA home loan:

1. Contact us: First, get in touch with us to start your VA loan application.
2. Verify your VA Loan Eligibility: Obtain your own Certificate of Eligibility or we can obtain it for you.
3. Complete the VA Loan Application: Submit your VA home loan application and provide all necessary paperwork including W-2s, tax returns, bank statements, and additional financial information.

Questions about whether you are eligible?

Our VA Home Loan Specialists are available to answer any questions you have about the VA loan program. Give us a call at 1-888-667-4552 or get started online.