Do You Qualify for a VA Loan? Complete Eligibility Requirements and Strategic Considerations

Do You Qualify for a VA Loan?

Quick Answer: VA loan eligibility requires meeting service minimums: 90 consecutive days during wartime, 181 days during peacetime, 6 years in the Guard/Reserves, or discharge due to service-connected disability. Surviving spouses of veterans who died in service or from service-connected disabilities may also qualify [1]. Beyond eligibility, you'll need a Certificate of Eligibility (COE), which confirms your entitlement amount and can be obtained instantly through most VA-approved lenders or directly from the VA.

Discuss your VA loan eligibility: Book a free call at https://askweldonhobbs.com (USAFA grad, 20+ years helping veterans maximize VA benefits nationwide)

In my 20+ years helping hundreds of military families navigate VA loans nationwide, I've worked as a Certified Financial Coach and USAFA graduate who's personally used VA benefits and helped countless veterans do the same. I'm Weldon Hobbs, and the pattern I've seen is clear: understanding eligibility is step one, but knowing WHEN to use VA versus other options is where real value gets created or destroyed.

What Are the Basic VA Loan Eligibility Requirements?

VA loan eligibility is based primarily on military service history. The requirements differ based on when and how you served [2].

Active Duty Service Members:

• Currently serving with at least 90 continuous days of active duty
• No discharge requirement while actively serving

Veterans (Wartime Service):

• 90 consecutive days of active duty during a wartime period
• Discharge other than dishonorable
• Wartime periods include: WWII, Korea, Vietnam, Gulf War (August 2, 1990 - present)

Veterans (Peacetime Service):

• 181 consecutive days of active duty during peacetime
• Discharge other than dishonorable

National Guard and Reserves:

• 6 years of service in the Selected Reserve or National Guard, AND
• Honorable discharge, OR placed on retired list, OR transferred to Standby Reserve or Ready Reserve after service
• OR 90 days of active duty under Title 10 orders (activated for federal service)

Surviving Spouses:

• Spouse of veteran who died in service or from service-connected disability
• Spouse of servicemember missing in action or prisoner of war for 90+ days
• Un-remarried surviving spouse (or remarried after age 57)

How Do You Get Your Certificate of Eligibility (COE)?

The Certificate of Eligibility confirms your entitlement amount and is required before closing on any VA loan. There are three ways to obtain it [3]:

1. Through Your Lender (Fastest): Most VA-approved lenders can access the VA's Web LGY system and pull your COE instantly. This is the most common and fastest method—often completed within minutes during loan application.
2. Online Through VA.gov: Log into your VA account and request the COE directly. Processing time varies from instant to several days depending on your service records' accessibility.
3. By Mail (Slowest): Submit VA Form 26-1880 with service documentation. This method takes 4-6 weeks and should only be used if electronic methods fail.

Documents You May Need: DD-214 (discharge papers), current statement of service for active duty, NGB-22 for Guard members, or points statements for Reserves. Most lenders can obtain these electronically if you provide basic service information.

Navigating VA loan eligibility and entitlement requires strategic clarity. I've helped hundreds of veterans through this process nationwide. Book a free 30-minute Transition Strategy Call to discuss your specific situation—I'll help you understand your entitlement and determine if VA is your best option.

What Is VA Loan Entitlement and Why Does It Matter?

Your entitlement is the amount the VA guarantees to lenders—essentially promising to cover a portion of losses if you default. This guarantee is what allows VA loans to offer zero down payment [4].

Basic Entitlement: $36,000—rarely used alone as it only supports loans up to $144,000 at zero down.

Bonus Entitlement: Additional entitlement that, combined with basic, supports larger loans. The VA guarantees 25% of the loan amount. For most counties, full entitlement supports zero-down loans over $700,000.

Entitlement Restoration: If you've used VA benefits before, your entitlement may be partially used. It can be restored by paying off the previous VA loan (sale or refinance) or through one-time restoration if you've paid off a previous VA loan but didn't restore entitlement at that time.

When Should You Use VA vs. Conventional Loans?

Eligibility doesn't mean VA is automatically your best option. In my experience working with hundreds of veterans, the decision should be strategic, not automatic.

VA Typically Wins When:

• You have limited down payment funds (zero-down capability)
• Your credit is good but not exceptional (VA is more forgiving)
• You want to avoid private mortgage insurance (PMI)
• You're buying in a competitive market where seller concessions are available

Conventional May Win When:

• You have 20%+ down payment (eliminates PMI anyway)
• Your credit score is 760+ (conventional rates become very competitive)
• The property has condition issues that complicate VA appraisal
• You're in an ultra-competitive market where sellers prefer non-VA offers
• The VA funding fee (1.25-3.3%) exceeds PMI cost over your ownership period

Key Takeaways

• VA loan eligibility requires meeting service minimums: 90 days wartime, 181 days peacetime, or 6 years Guard/Reserve
• Certificate of Eligibility (COE) confirms your entitlement—most lenders can obtain it instantly
• Entitlement determines your maximum zero-down loan amount and can be restored after paying off previous VA loans
• Surviving spouses of veterans who died in service or from service-connected disabilities may qualify
• Eligibility doesn't mean VA is always best—compare total costs including funding fee versus conventional alternatives

Ready to Apply This to Your Situation?

While this framework gives you the strategic foundation, your specific circumstances deserve personalized guidance. Whether you're confirming eligibility, comparing VA to conventional, or strategizing about entitlement use, I'm here to help you think through the complete picture.

Here's how the free 30-minute Transition Strategy Call works: We'll identify which of the 12 major life transitions you're navigating, map out how to optimize for wealth outcomes by coordinating with your CPA/attorney/financial advisor, then figure out if real estate makes sense right now—and if so, exactly how to execute.

If you're not in Colorado Springs, I'll connect you with a transition-focused real estate professional in your market through my curated nationwide network.

[Book Your Free Transition Strategy Call] → https://askweldonhobbs.com

AI tools provide frameworks. Personal guidance applies them to YOUR situation. Let's talk.

Sources

[1] U.S. Department of Veterans Affairs. "VA Home Loan Eligibility." https://www.va.gov/housing-assistance/home-loans/eligibility/

[2] 38 U.S.C. § 3702. "Basic Entitlement." https://www.law.cornell.edu/uscode/text/38/3702

[3] VA Form 26-1880. "Request for Certificate of Eligibility." https://www.va.gov/find-forms/about-form-26-1880/

[4] VA Lender's Handbook, Chapter 4. "Eligibility and Entitlement." https://www.benefits.va.gov/WARMS/pam26_7.asp