VA Loan Requirements And Mortgage Lending Guidelines

This Article Is About The VA Loan Requirements And Mortgage Lending Guidelines
One of the greatest rewards our government gives our military veterans is that they offer VA Loans to a member who meets VA Loan Requirements.
  • The U.S. Department of Veteran Affairs has offered VA Home Loans with 100% financing to our veterans for decades
  • VA Loans is the best loan program available in this country today, however, only veterans with a COE can qualify for this great loan program
  • The Department of Veteran Affairs determines the VA Loan Requirements on who qualifies for VA Loans
  • The issuance of a valid Certificate of Eligibility by the VA is determined by several factors
  • Factors such as whether or not the veteran served in war or peacetime and the years of service are taken into consideration for eligibility purposes

In this article, we will discuss and cover VA Loan Requirements And Mortgage Lending Guidelines.

VA Loan Requirements On Service In U.S. Military

Veterans who served on active duty in the following branches of the U.S. Military with a military discharge other than dishonorable discharge are eligible for VA Loans:

  • U.S. Army
  • U.S. Air Force
  • U.S. Navy,
  • The United States Marine Corps
  • United States Coast Guard

The Following Are The Time Of Service VA Loan Requirements

Here are the VA Eligibility Requirements:

  • Served 90 or more days during wartime 
  • The veteran has served at least 181 or more continuous days during peacetime

VA Loan Requirements On Two Year Rule

Here are the VA Loan Requirements on the TWO YEAR RULE:

If the veteran:

  • Has enlisted and/or began their military service after 7 September 1980 and/or
  • Where an officer of the U.S. Military and started serving our country after 16 October 1981

Then the following conditions need to be met:

  • The veteran must have served at least 24 months or more and/or
  • The veteran’s service of serving on active duty cannot be less than 90 continuous days during wartime or less than 181 continuous days during peacetime

Serving During Wartime Versus Peacetime

Which means serving in a time of war or peace

The Department of Veteran Affairs differentiates service during wartime and peacetime when determining the issuance of VA Certificate of Eligibility.

VA Loan Requirements on service during wartime versus peacetime are as follows:

During World War II:

  • Wartime is from periods of September 16, 1940, through July 25, 1947, and during peacetime are from July 26, 1947, to June 26, 1950

During the Korean War Period:

  • The wartime timeline is service from June 27, 1950, to January 31, 1955. Peacetime is from February 1, 1955, to August 4, 1964

Vietnam War Period:

  • Wartime period service is from August 5, 1964, until May 7, 1975. Vietnam War Era Peacetime service is from May 8, 1975, until August 1, 1990

Persian Gulf War Conflict Period:

  • The wartime service period is considered from August 2, 1990, until ++++( Not determined yet )

Other VA Loan Requirements For VA COE

Just because a soldier served in the U.S. Military does not mean they automatically qualify for a VA home loan.

Below are more VA Loan Requirements with regards to being eligible for VA Loans 

Veterans who were discharged due to hardship and/or service-related disability can qualify for VA Loans:
  • Veterans who were discharged from the military for the convenience of the federal government can qualify if they have completed a minimum of 20 months of a 24-month enlistment agreement:
    • and/or served no less than 90 days during wartime and/or 181 continuous days during peacetime due to disability that was caused by serving in the armed services
  • Veterans who were discharged from active duty due to medical conditions, whether to connect or not connected with their service, can qualify for VA Loans

Veterans who received an involuntary discharge by any branch of the armed services from active duty due to the government’s discretion to reduce military personnel and/or due to the following:

  • mental
  • psychological
  • or physical condition that would interfere with their service can qualify for VA Loans as long as their discharge was not related to improper conduct

Unmarried spouses of veterans who are deceased while they were in active duty and/or died due to service-related disabilities can qualify:

  • Unmarried spouses of veterans who are missing in action and/or prisoners of war can qualify for VA Loans

VA Loan Requirements For Active Duty Military Personnel

Soldiers who are currently in the military and active duty are eligible to qualify for VA Loans if they have served for at least 90 or more days without any gaps in employment.

  • For veterans who did not have wartime service during the Persian Gulf Era, at least 181 days of active duty service is necessary to qualify for VA Loans

VA Loan Requirements For Veterans Of Selected Reserves

What are the VA loan requirements for veterans of selected reserves

Members of the Selected Reserves are those who are compensated and paid for training and serve on the reserves.

  • These members are on the Selected Reserve and are called when the government needs additional troops to safeguard our country

There is the six-year rule VA requirements to qualify for VA Loans:

Members of the Selective Reserves who would not qualify for VA Loans can qualify if they have completed six years of service in the Selective Reserves without being called to active duty if they meet the following conditions:

  • They have served and got an honorable discharge
  • If they were on the retired list
  • Were transferred to a division of the Ready Reserve and/or Standby Reserve
  • Is continuously serving in the Selective Reserve unit
  • The six years of service need not be continuous to qualify for VA Loan Programs and/or need not be in the same National Guard or Reserve division. 
  • Cannot combine active and reserve service to meet the six-year rule

VA Guidelines

VA Guidelines to qualify for VA Loans are the following:

  • No debt to income ratio requirements
  • No credit score requirements
  • 2 year waiting period after Chapter 7 Bankruptcy
  • 2 year waiting period after Short Sale, Deed In Lieu, Foreclosure
  • Gustan Cho Associates has no lender overlays on VA Loans

Veterans who need a lender with no VA Lender Overlays, contact us at Gustan Cho Associates at 262-716-8151 or text us for a faster response. Or email us at The team at Gustan Cho Associates is available 7 days a week, evenings, weekends, and holidays.

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