VA loans are for current military, reserves/national guard, military veterans and surviving spouses.
Servicemembers and Veterans
To obtain a COE, you must have been discharged under conditions other than dishonorable and meet the service requirements below:
| Status | Qualifying Wartime & Peacetime Periods | Qualifying Active Duty Dates | Minimum Active Duty Service Requirement |
|---|---|---|---|
| Veteran | WWII | 9/16/1940 – 7/25/1947 | 90 total days |
| Post-WWII | 7/26/1947 – 6/26/1950 | 181 continuous days | |
| Korean War | 6/27/1950 – 1/31/1955 | 90 total days | |
| Post-Korean War | 2/1/1955 – 8/4/1964 | 181 continuous days | |
| Vietnam War | 8/5/1964 – 5/7/1975 *For Veterans who served in the Republic of Vietnam, the beginning date is 2/28/1961 | 90 total days | |
| Post-Vietnam War | 5/8/1975 – 9/7/1980 *The ending date for officers is 10/16/1981 | 181 continuous days | |
| 24-month rule | 9/8/1980 – 8/1/1990 *The beginning date for officers is 10/17/1981 |
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| Gulf War | 8/2/1990 – Present |
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| Currently On Active Duty | Any | Any | 90 continuous days |
| National Guard & Reserve Member | Gulf War | 8/2/1990 – Present | 90 days of active service |
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*If you do not meet the minimum service requirements, you may still be eligible if you were discharged due to (1) hardship, (2) the convenience of the government, (3) reduction-in-force, (4) certain medical conditions, or (5) a service-connected disability.
Spouses
The spouse of a Veteran can also apply for home loan eligibility under one of the following conditions:
- Unremarried spouse of a Veteran who died while in service or from a service connected disability, or
- Spouse of a Servicemember missing in action or a prisoner of war
- Surviving spouse who remarries on or after attaining age 57, and on or after December 16, 2003
(Note: a surviving spouse who remarried before December 16, 2003, and on or after attaining age 57, must have applied no later than December 15, 2004, to establish home loan eligibility. VA must deny applications from surviving spouses who remarried before December 6, 2003 that are received after December 15, 2004.) - Surviving Spouses of certain totally disabled veterans whose disability may not have been the cause of death
Other Eligible Beneficiaries
You may also apply for eligibility if you fall into one of the following categories:
- Certain U.S. citizens who served in the armed forces of a government allied with the United States in World War II
- Individuals with service as members in certain organizations, such as Public Health Service officers, cadets at the United States Military, Air Force, or Coast Guard Academy, midshipmen at the United States Naval Academy, officers of National Oceanic & Atmospheric Administration, merchant seaman with World War II service, and others
Loans that close AFTER January 1 2020
The minimum down payment requirement for a VA home purchase is 0% for a 1 to 4 unit property. If buying a multi-unit property, the VA buyer must occupy one of the units.
Loans that close BEFORE January 1 2020
The minimum down payment requirement for a VA home purchase is 0% for a 1 to 4 unit property. If buying a multi-unit property, the VA buyer must occupy one of the units.
However, VA does have a loan limit equal to the county loan limit set by Fannie Mae. The conforming loan limit for most counties is $424,100. Once you’ve reached your entitled guarantee you will have a portion out of pocket. Here’s how it works.
EXAMPLE:
Lets say you want to purchase a $500,000 home using VA funds.
VA guarantees 25% of the conforming loan limit. 0.25 x $424,100 = $106,025
So $106,025 is the max guaranty with no money down, but since this is a $500,000 home, the required coverage is 0.25 x $500,000 = $125,000
The difference will be the required down payment: $125,000 – $106,025 = $18,975
So while you can put 0% down on a $424,100 purchase price, you would be required to put $18,975 (3.8%) down on a $500,000 purchase, resulting in a loan amount of $481,025.
No. One of the many benefits for a VA loan is that there is no Private Mortgage Insurance (PMI)even for loans with no down payment.
Generally, all Veterans using the VA Home Loan Guaranty benefit must pay a funding fee. This reduces the loan’s cost to taxpayers considering that a VA loan requires no down payment and has no monthly mortgage insurance. The funding fee is a percentage of the loan amount which varies based on the type of loan and your military category, if you are a first-time or subsequent loan user, and whether you make a down payment. You have the option to finance the VA funding fee or pay it in cash, but the funding fee must be paid at closing time.
You do not have to pay the fee if you are a:
- Veteran receiving VA compensation for a service-connected disability, OR
- Veteran who would be entitled to receive compensation for a service-connected disability if you did not receive retirement or active duty pay, OR
- Surviving spouse of a Veteran who died in service or from a service-connected disability
The funding fee for second time users who do not make a down payment is slightly higher. Also, National Guard and Reserve Veterans pay a slightly higher funding fee percentage. To determine your exact percentage, please review the latest
Loans that close after January 1, 2020
| Type of Loan | Down Payment | Percentage for First Time Use | Percentage for Subsequent Use |
| Purchase | 0%-4.99%
5%-9.99% 10% or more |
2.30%
1.65% 1.40% |
3.60%
1.65% 1.40% |
| Cash-Out Refinance | n/a | 2.30% | 3.60% |
| IRRRLs* | n/a | 0.50% | 0.50% |
* IRRRLs = Interest Rate Reduction Refinancing Loans
Other than the standard documentation needed for pre-qualification and loan approval found here: Printable List, VA also requires the following:
- DD214 (Certificate of Release or Discharge from Active Duty)
- Certificate of Eligibility (Download Request Here)
- SSA-89 (Download Request Here)
- Social Security Card
