Mark Michaud

Loan Offcer

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860-559-7577

mark@noreastmortgageservices.com

Mark Michaud Loan Offcer

VA Loans: Your Qualification Guide

Published on Sep 30, 2025 | VA Loans
VA Loans: Your Qualification Guide
VA Loans: Your Qualification Guide

Veterans and active-duty military personnel have access to one of the best mortgage programs available—VA loans. Since 1944, this benefit has helped millions of service members buy homes with no down payment and better terms than conventional mortgages.

Here's almost everything you need to know about qualifying for a VA loan.

What Makes VA Loans Special?

VA loans offer benefits that other mortgages simply can't match:

  • No down payment required on most home purchases
  • No private mortgage insurance (PMI) - saving hundreds monthly
  • Competitive interest rates typically lower than conventional loans
  • More flexible credit requirements than traditional mortgages
  • Limited closing costs with restrictions on what veterans can be charged

For those who've served, these benefits can save tens of thousands of dollars over the life of a loan.

VA Loan Qualification Requirements

1. Service Requirements

Your eligibility depends on when and how you served:

Active Duty Service Members:

  • 90 consecutive days during wartime, OR
  • 181 days during peacetime

National Guard and Reserve:

  • 6 years of service, OR
  • 90 days of active duty (including 30 consecutive days)

Veterans:

  • Meet the minimum service requirements above
  • Receive anything other than a dishonorable discharge

Special Cases:

  • Surviving spouses of service members who died in service or from service-related disabilities
  • Service members with service-connected disabilities may have additional benefits

Don't meet these exact criteria? The VA has numerous exceptions and special circumstances—it's worth checking your eligibility even if you're unsure.

2. Certificate of Eligibility (COE)

Your COE proves to lenders that you qualify for VA loan benefits. Getting one is straightforward:

  • Online (Fastest): Apply through the VA's eBenefits portal in minutes
  • Through Your Lender: Many VA-approved lenders can obtain your COE directly
  • By Mail: Submit VA Form 26-1880 with your discharge papers

Most service members can get their COE instantly online.

3. Credit Score Requirements

VA loans are more forgiving than conventional mortgages. While the VA itself doesn't set a minimum credit score, most lenders look for:

  • Minimum 620 credit score for most programs
  • Some lenders may go lower depending on other factors
  • Recent credit issues? You may still qualify with compensating factors

The focus is less on perfect credit and more on demonstrating responsible financial behavior.

4. Income and Debt Requirements

VA loans use "residual income" standards—a measure of how much money you have left after major expenses. This approach often helps veterans qualify when they might not meet conventional debt-to-income ratios.

What lenders verify:

  • Stable employment history (typically 2 years)
  • Sufficient income to cover mortgage payments
  • Reasonable debt-to-income ratio (usually under 41%)
  • Adequate residual income based on family size and location

5. Property Requirements

The home you're buying must meet VA standards:

  • Primary Residence Only: You must intend to live in the home
  • Move-In Ready Condition: Property must be safe and structurally sound
  • VA Appraisal Required: A VA-approved appraiser must verify the home's value and condition
  • Minimum Property Requirements: Must meet health and safety standards

Understanding Your VA Loan Entitlement

Your "entitlement" is the amount the VA will guarantee on your loan. In most cases, eligible veterans have full entitlement, meaning:

  • No loan limits in most counties for qualified borrowers
  • Can buy homes over $1 million with no down payment (if you qualify financially)
  • Entitlement restores after paying off previous VA loans

You can even use your VA loan benefit multiple times throughout your life.

The Bottom Line

VA loans represent one of the most valuable benefits available to military service members and veterans. With no down payment, no PMI, and competitive rates, this program makes homeownership accessible and affordable.

You've earned this benefit through your service. Don't let it go unused.

Ready to explore your VA loan options? Call us today and take the first step toward homeownership with the benefits you've earned.