VA loans are government-backed loans that allow qualified individuals the opportunity to buy homes. To be eligible, you must be a current or former member of the military. However, there are other requirements that you need to be aware of.
Military Requirements
During wartime, you must have served at least 90 days on active duty or been discharged due to a disability connected to your service. Here are the dates of required service based on which war you were in.
· WWII: Sept 16, 1940 - July 25, 1947; peacetime July 26, 1947 – June 26, 1950
· Korean: June 27, 1950 - Jan 31, 1955; peacetime Feb 1, 1955 – Aug 4, 1964
· Vietnam: Aug 5, 1964 - May 7, 1975; peacetime May 8, 1975 to Sep 7, 1980 for enlisted military and Oct 16, 1981 for officers
To qualify for peacetime service, you would have had to serve at least 181 days and have not been dismissed for dishonorable conditions. If you served after these dates, you would have to meet other specific eligibility requirements for the war in which you served. For those who are currently in the military, they must have served 181 days or 90 days during the Gulf War to be eligible for a VA loan.
If you are a member of the Reserves or National Guard, you may qualify if you have completed six years of service and attended the required drills and training. Spouses of veterans may also be eligible for this loan program.
To qualify for the program, you must fill out the VA Form 26-1880. Once it is determined that you meet the eligibility criteria of service, you will be issued a Certificate of Eligibility. It is the first step in the application process, but it does not provide approval for a loan. That must be determined by the lender you choose.
Other Eligibility Criteria
To obtain a VA loan, a person must have sufficient income to make the mortgage payments. Lenders will also check the buyer's credit to determine qualification. The property must also be approved and may be either a single-family home or condominium. The buyer may also use the funds to build a home, purchase and make improvements to a home, or improve a home that is currently owned.
Special Qualifications
A person may apply for a VA loan if they served in the military of a country that was an ally of the United States during World War II or have been members of specific organizations. This includes the following:
· Public Health Service officers
· Officers of the National Oceanic & Atmospheric Administration
· Merchant seamen in WWII
· Cadets of the United States military, Air Force, or Coast Guard Academy
While the VA loan program is often associated with first-time home buyers, previous buyers may also use this program as long as the other loan has been paid in full.
The first step in obtaining a VA loan is to determine your eligibility. If you have served in the military, you can fill out the form to find out if you qualify and begin the process to homeownership.