The VA loan program is a great benefit to active military and vets alike. The program has been offered since 1944 and has opened up the doors to homeownership to many veterans and their families. The VA loan is one of the government loan programs that has less red tape and is easy to qualify for. The loan can be made without a down payment and has lower fixed interest rates than other types.
Additionally, this type is not relegated to purchasing single-family homes only. Instead, a VA mortgage can go toward a condominium or a townhouse, building a new property, purchasing and improving a property, making energy-efficient improvements, or refinancing an existing VA home mortgage.
The application and qualification process is similar to other types of government loans like FHA and USDA. Any interested former military must first apply for a Certificate of Eligibility through the VA, pick out the perfect house and sign a purchase agreement. Once this is complete, the appraisal, VA home inspection and underwriting process can begin.
So exactly who is eligible for VA loans? Veterans who have served on active duty and who have been discharged, except a dishonorable discharge, can apply. A veteran, prior to applying, must have served 90 days during wartime or 181 continuous days during peacetime. Additionally, for veterans enlisted after September 7, 1980 or who began service after October 16, 1981, there’s a two-year requirement. National guards and reservists have a six-year requirement within certain criteria. Surviving spouses have their own set of eligibility requirements.
The VA themselves has no “set” minimum credit requirements for lending. However, secondary market lenders have made restrictions, requiring applicants to have at least a 580 score. Additionally, applicants are advised to be two years out of filing for Chapter 7 bankruptcy and be in good credit standing.
Going through the foreclosure process is met with similar restrictions; the borrower, if he or she went through the process previously, must provide a complete history of the foreclosure, including circumstances. Generally, a min 5-year wait is required by most banks/lenders for any applicant that has had a past short sale or foreclosure.
Below we have noted some VA loan benefits for 2025:
No Down Payment:
VA mortgages require $0 money down at closing – a valuable benefit that only the VA and USDA loan offer.
Lower Monthly Mortgage Payments:
Because the VA guarantees a portion of your loan, you won’t need to pay mortgage insurance premiums ( PMI, etc) which will result in big savings.
Easy Approval Process:
VA home loans were designed to offset common financial challenges faced by military families and veterans – so approval may be easier.
Basic VA Eligibility Requirements –
- 90 days of consecutive service during wartime
– OR –
- 181 days of service during peacetime
– OR –
- 6 years of service in the National Guard or reserves
– OR –
- Spouses of service members who died in the line of duty or as the result of a service-related disability
After establishing that you meet these requirements, you will need a Certificate of Eligibility from the VA. (we can assist you with this)
Any active military or veterans can visit the website for more information. Questions about the VA program or applying for a new loan? Please call us at ph: 800-743-7556 or just submit the quick Info Request Form on this page and a VA loan specialist will contact you 7 days a week.