Veterans Mortgages - Determining VA Loan Eligibility

VA loan eligibility guidelines are determined by the U.S. Department of Veterans Affairs. A Certificate of Eligibility shows the amount of entitlement. Those interested in VA home loan benefits may find it helpful to speak with a VA loan professional to understand their own eligibility and entitlement.
...the VA determines eligibility on a case-by-case basis...

In order to be considered for the VA home loan program, a borrower must meet military service requirements. The eligibility requirements vary depending on when the military service was completed, but can be summarized as follows:

  • 90 days of active duty during wartime
  • 181 days of continuous active duty during peacetime
  • 6 years of service for Reservist/National Guard

For applications involving military discharges that are other than honorable, the VA determines eligibility on a case-by-case basis.

A potential VA borrower must obtain a Certificate of Eligibility (COE) before applying for a veterans’ mortgage. The Certificate shows the lender how much entitlement a borrower has available.

Borrowers who are eligible for a VA loan can enjoy:

  • No down payment (100% financing)
  • No private mortgage insurance (PMI)
  • Relaxed qualifying standards
  • Competitive interest rates
  • No penalties for mortgage pre-payment
  • Cash-out and debt consolidation
  • Streamline rate reduction

Ultimately, the VA determines whether a person is eligible for VA home loan benefits. For more information on your own eligibility, you can contact the U.S. Department of Veterans Affairs, or speak with a VA loan professional.

Ron Denbow

Ron Denbow

Real Estate Professional
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