Who Qualifies for VA Home Loans? Find Out Here!

Millions of veterans and their families are eligible for some of the most generous loan programs available in the U.S. today – VA home loans. But if you want to take advantage of these great benefits, you want to know the qualifications and consider all your options beforehand. That’s why we’re diving into the details of VA loan eligibility, so you can determine if a VA loan is right for your needs. So get ready to be informed and figure out who qualifies for a VA home loan.

Who Qualifies for VA Home Loans?

Veterans and active duty service members are eligible to receive VA home loans. National Guard members and reservists who have completed at least six years of service may also qualify. Some surviving spouses of veterans may also be eligible.

For a veteran or service member to qualify for a VA loan, they must meet certain eligibility requirements known as the “four Cs”: capacity, credit, collateral, and character. A Certificate of Eligibility (COE) will be required to prove their eligibility.

Capacity means that the borrower has the financial capability to pay back the loan on time. The borrower should not have any significant monthly debts affecting their ability to repay the loan. A good credit score is also important, as lenders will only lend money to those with good credit scores due to the decreased risk of defaulting on the loan. Collateral refers to the security that is used as an assurance that the debt will be repaid; in this case, it would be the home itself. Character usually refers to how a borrower has paid their debts in the past, which is shown in their credit history. 


Qualifying veterans are able to receive VA home loans, making it easier for them to purchase their own homes. Generally speaking, veterans who have served more than 181 days of active duty service during peacetime or more than 90 days of active duty service during wartime can qualify for a VA loan. Other requirements for eligibility include having served in the military for at least a certain amount of time and being honorably discharged. In some cases, you may also need at least six years of service in the National Guard or certain reserve forces.

On the other hand, there can be some restrictions on veteran eligibility depending on the type of service rendered. Right now, soldiers who were dishonorably discharged from the military can’t get a VA loan unless they were given a Certificate of Release after being forgiven for any crimes they committed while in the military. Even though veterans may be eligible for a loan in theory, lenders may add more requirements before approving a loan to make sure it will be repaid.

Military Members and Spouses

Military members and their spouses may be able to get a VA home loan if they meet the requirements and have served for a certain amount of time. For example, for an active-duty or former military member to qualify for the loan, they must have served 181 days during peacetime or 90 days during wartime. Those who are discharged under “other than dishonorable conditions” are also eligible to apply.

The spouse of a veteran may be able to use the veteran’s eligibility to obtain a VA home loan as well. But the eligibility rules can differ depending on whether the veteran is still alive or has died because of injuries or illnesses related to their service.


Requirements for a VA Home Loan

Requirements for a VA home loan are based on the veteran’s eligibility, income, credit, and other factors. To be eligible for a VA home loan, veterans and military members must meet several requirements, including:

  • Service Length Eligibility: A veteran must have served at least 90 days of active duty or more (during wartime) or 181 consecutive days of active service (during peacetime).
  • The character of service: Veterans and military members must have an honorable discharge. Some non-honorable discharges can also qualify depending on circumstances.
  • Credit Requirements: There is no minimum credit score requirement; however, lenders may require that borrowers have a good credit score to be approved for a loan.
  • Maximum Loan Amounts: Lenders may also limit how much money they will lend to borrowers and how much equity veterans can borrow with their loan amount.

Loan Amounts and Loan Limits

In general, veterans can get a loan for up to 100% of the lower of their appraised value or purchase price. This allows veterans to purchase a home without much money out-of-pocket; however, every lender will limit the financing or loan amount based on the veteran’s income and credit score. Some lenders may let veterans borrow more than 100% of their property’s assessed value or purchase price if other factors make it fair.

The VA doesn’t set limits on the size of loans. However, borrowers can only get a loan that is four times their available income or the limit for their debt-to-income ratio, whichever is lower. This limit helps ensure veterans take out loans that are manageable for their budgets.

How to Apply for a VA Home Loan

Get your Certificate of Eligibility (COE) from the Department of Veterans Affairs. This is the first step in getting a VA loan. Once you have the COE, it is time to start shopping for a credible and trusted VA-approved lender to provide you with the best terms and rates.

The lender will walk you through the process and help you get the necessary paperwork to evaluate your finances. As part of your application, lenders typically request proof of employment, such as pay stubs, bank statements, and W-2 forms. You may also need a credit score check or letters from creditors if other outstanding debts must be resolved. After gathering these materials, your lender can help you determine whether or not you qualify for a VA loan based on the Department of Veteran Affairs’ guidelines. From there, your lender will provide an estimate of how much money you can borrow to purchase or refinance a home. This number is determined by evaluating your income and creditworthiness and taking into account any closing costs or down payment required.

 Requirements for a VA Home Loan
The last step in applying for a VA loan has all the paperwork finalized to initiate the closing. During this time, both parties involved in the transaction should make sure any discrepancies related to the loan package are addressed. Once this is completed, you are ready to begin the exciting process of finding your dream home!


Looking for a way to finance your dream home? Smart Money Hawaii is here to help! Our team of experienced professionals can guide you through the process of obtaining a VA home loan. If you’re a veteran or an active-duty service member, you may be eligible for this valuable benefit.

At Smart Money Inc, we understand that the process of obtaining a VA home loan can be overwhelming. That’s why we’re committed to providing you with personalized guidance and support every step of the way. 

Don’t miss out on the opportunity to own your own home with a VA loan. Contact Smart Money Inc today at (808) 447-1850 to learn more about your eligibility and to start the process of securing your dream home. Let us help you make your homeownership dreams a reality!