VA Loan Eligibility Requirements: A Complete Guide for Veterans, Service Members, and Eligible Spouses

We help eligible borrowers confirm service requirements, request a Certificate of Eligibility (COE), and understand how VA entitlement works. This guide provides a clear and detailed explanation of VA loan eligibility so you know what to expect as you begin the mortgage process.

Who Is Eligible for a VA Home Loan?

Eligibility for a VA loan depends on military service history, duty status, length of service, and discharge characterization. The VA recognizes several categories of qualifying service. Borrowers may be eligible if they meet at least one of the following criteria.

Active-Duty Service Members

Active-duty personnel typically meet eligibility requirements after completing:

• 90 consecutive days of active service during wartime, or
• 181 days of active service during peacetime

Service must be completed under honorable conditions to qualify.

Veterans

Veterans meet eligibility requirements with the same service-time rules as active-duty personnel. Eligibility is determined by total service length and discharge status. Veterans must have been discharged under honorable conditions to qualify.

National Guard and Reservists

Members of the Guard or Reserves may be eligible after completing:

• 6 years of honorable service, or
• 90 consecutive days of active-duty service under federal orders

State activation does not always qualify unless federalized under Title 10 orders.

Surviving Spouses

A surviving spouse may be eligible if:

• The Veteran died in service or from a service-connected disability
• The spouse has not remarried (in most cases)
• The spouse receives Dependency and Indemnity Compensation (DIC)

Some remarried spouses may still qualify depending on age and date of remarriage, according to VA guidelines.

Understanding VA Entitlement

VA entitlement refers to the amount of loan guarantee the VA provides to the lender. This guarantee reduces lender risk and allows us to offer more flexible loan terms.

Full Entitlement

Borrowers typically have full entitlement if they:

• Have never used their VA loan benefit, or
• Previously used their benefit but the loan was paid off and entitlement restored

With full entitlement, borrowers may purchase a home at any price level approved by underwriting without a minimum required down payment.

Remaining or Reduced Entitlement

Borrowers may have reduced entitlement if:

• They currently have an active VA loan
• They previously defaulted on a VA loan
• They still own a home purchased with a VA loan

Remaining entitlement may impact down payment requirements depending on local conforming loan limits.

Certificate of Eligibility (COE)

The Certificate of Eligibility (COE) verifies that a borrower meets VA service requirements and confirms available entitlement. The COE is required to complete a VA loan.

How We Help Borrowers Obtain the COE

We retrieve most COEs electronically through the VA lender portal, which speeds up the process significantly. In some cases, supporting documentation may be required, such as:

• DD Form 214 for Veterans
• Statement of Service for active-duty borrowers
• NGB Forms 22 or 23 for National Guard members
• VA Form 26-1817 for surviving spouses

Once the COE is issued, we verify entitlement and proceed with the loan approval process.

VA Occupancy Requirements

The VA requires borrowers to use the home as their primary residence. Occupancy guidelines include:

• The borrower must intend to occupy the property within a reasonable time after closing
• Active-duty service members may satisfy occupancy through a spouse
• Borrowers deployed shortly after closing may qualify under VA’s temporary duty occupancy rules

Investment properties and vacation homes do not meet VA occupancy standards. Multi-unit homes may qualify if the borrower occupies one of the units as the primary residence.

Income, Credit, and Underwriting Requirements

While the VA sets broad guidelines, individual lenders may apply additional requirements. Borrowers should expect a review of:

Credit History

VA loans offer flexible credit standards, but lenders typically require a review of payment history, credit depth, and overall financial stability. A previous bankruptcy or foreclosure does not automatically disqualify a borrower, depending on when it occurred and the circumstances surrounding it.

Residual Income Requirements

The VA uses residual income guidelines to ensure borrowers have adequate funds remaining each month after major expenses. This guideline helps promote long-term loan performance.

Debt-to-Income Ratio (DTI)

The VA does not enforce a strict DTI limit, but lenders use it as part of the financial evaluation. Higher DTIs may still qualify depending on compensating factors.

Properties Eligible for VA Financing

The VA allows borrowers to purchase a variety of property types when using their home loan benefit. Eligible homes include:

• Single-family homes
• VA-approved condominium units
• Townhomes
• Manufactured homes on a permanent foundation
• Two- to four-unit properties, as long as the borrower occupies one unit

All homes must meet VA Minimum Property Requirements (MPRs), which ensure the home is safe, sanitary, and structurally sound.