Eligibility for VA Home Loan Benefits

Military Loan Eligibility Requirements from VA Loan Guaranty Service

Nov 13, 2009 David Harris-Gershon

For military personnel, the eligibility requirements for a VA home loan can be confusing. This article clearly presents the VA loan eligibility guidelines.

The military service requirements for receiving VA loan benefits vary substantially depending upon when a military service member served. What follows are the eligibility guidelines, by category, for both active duty and retired military personnel seeking a VA home loan or a home refinance improvement through the VA.

VA Home Loan Eligibility – Wartime (1940-1975)

Military service personnel who served in the following wars for at least 90 days are eligible for military loan benefits:

World War II – September 16, 1940 to July 25, 1947
Korean War – June 27, 1950 to January 31, 1955
Vietnam War – August 5, 1964 to May 7, 1975

It is important to note that military personnel who served during any of the above dates for at least 90 days must have been discharged under honorable conditions. If service ended before 90 days, eligibility remains if the discharge was due to a war-induced disability.

VA Home Loan Eligibility – Peacetime (1947-1981)

Military personnel who served for at least 181 continuous days on active duty during any of the below time periods are eligible for military loan benefits:

July 26, 1947 to June 26, 1950
February 1, 1955 to August 4, 1964
May 8, 1975 to September 7, 1980 (for enlisted members)
May 8, 1975 to October 16, 1981 (for officers)

Military personnel who served during any of the above dates and were discharged must have been done so under honorable conditions. If service ended before 181 days were completed, eligibility remains if the discharge was due to a service-related disability.

VA Home Loan Eligibility – Service After 9/7/1980 (Enlisted) and 10/16/1981 (Officers)

According to the Loan Guaranty Service, for military personnel who served after the above dates to be eligible for military loan benefits, they must have:

"Completed 24 months of continuous active duty or the full period (at least 181 days) for which [they] were ordered or called to active duty and been discharged under conditions other than dishonorable, or
"Completed at least 181 days of active duty and been discharged under the specific authority of 10 USC 1173 (Hardship), or 10 USC 1171 (Early Out), or have been determined to have a compensable service-connected disability," or
Received a disability discharge from the military before having completed 181 days of service. Additionally, military personnel are eligible if their early release from the military was due to a reduction of forces, particular medical conditions, or what is termed "the convenience of the Government."

VA Home Loan Eligibility – Gulf War Period (Beginning August 2, 1990)

According to the Loan Guaranty Service, military personnel are eligible for military loan benefits if they:

Completed a minimum of 24 continuous months on active duty "or the full period (at least 90 days) for which [they] were called or ordered to active duty," and received an honorable discharge, or
Completed a minimum of 90 days on active duty and received a discharge "under the specific authority of 10 USC 1173 (Hardship)," or 10 USC 1171 (Early Out), or were discharged due to a service-related disability that qualifies for compensation, or
Received a disability discharge from the military before having completed 90 days of service. Additionally, military personnel are eligible if their early release from the military was due to a reduction of forces, particular medical conditions, or what is termed "the convenience of the Government."

VA Home Loan Eligibility For Those Currently on Active Duty

Anyone currently on regular duty (which does not include training) is eligible for military loan benefits after serving for 181 days (or 90 days in the Gulf War). Those discharged for honorable reasons, including for a disability, may also be eligible for VA loan benefits.

For more information on military loan benefit eligibility, reference this Veterans Authority circular, from which the information for this article was both quoted and gleaned, or contact your local VA Regional Loan Center.

The copyright of the article Eligibility for VA Home Loan Benefits in Mortgages/Loans is owned by David Harris-Gershon. Permission to republish Eligibility for VA Home Loan Benefits in print or online must be granted by the author in writing.

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