Understanding VA Loan Eligibility Requirements is key for veterans seeking homeownership. VA loans offer benefits like no down payment and no PMI. Eligibility hinges on service history (wartime, peacetime, or National Guard/Reserves), or being a surviving spouse. A Certificate of Eligibility (COE) is crucial. Credit scores and income are considered, but limits are flexible. The loan is for primary residences, though “house hacking” is permitted.
VA loan eligibility is a question I get hit with all the time—especially from veterans trying to figure out how the process actually works. It usually sounds like:
- “I served for four years, do I qualify?”
- “Do I need perfect credit to get a VA loan?”
- “Does it have to be my first home?”
I get it. You’ve served the country, now you’re trying to build some equity and security for your life. And you’re hearing all these words thrown around—COE, PMI, funding fee—and none of it feels straightforward. Here’s what I wish someone would’ve told me: The VA loan eligibility requirements aren’t as complex as people make them sound. Once you know the basics, it becomes way more doable. I’m going to walk you through it the way I’d explain it to a friend at the gym—no fluff, no hidden steps, just what actually matters.
What Is a VA Loan, Really?
A VA loan is a type of mortgage backed by the U.S. Department of Veterans Affairs. What makes it stand out?
- No down payment required in most cases
- No private mortgage insurance (PMI)
- Flexible credit requirements
- Capped closing costs
- Help from the VA if you ever run into trouble making payments
This thing is designed to help veterans, active-duty members, and some surviving spouses get into homes without the usual nonsense from big banks nickel and diming every detail.
Who’s Actually Eligible for a VA Loan?
This is where most people get stuck. It’s not a guessing game—you either qualify based on service dates/types or you don’t. Here’s the scoop:
Basic Service Requirements
- Served 90 consecutive days on active duty during wartime
- 181 days of active duty during peacetime
- More than 6 years in the National Guard or Reserves
- Spouse of a service member who died in the line of duty or as a result of service-connected injuries
Still not sure where you land? Get a Certificate of Eligibility (COE). This is your ticket to proving your VA loan eligibility. Lenders will ask for this. No COE, no loan. Simple as that.
How Do I Get a Certificate of Eligibility (COE)?
There are 3 ways to get your COE:
- Ask your lender – Most VA-approved lenders can get it for you in minutes.
- Apply online through the VA eBenefits portal.
- Mail in Form 26-1880 directly to the VA. Old school, but it works.
If you’re using a good lender, don’t stress—they’ll pull it up for you. Want to dig deeper into smart real estate moves once you qualify? Hit up the reAlpha blog for more straight talk insights that help.
VA Loan Eligibility If You’re a Reservist or National Guard
This one catches a lot of folks off guard. Yes, you’re eligible. But the rules are a touch different:
- You need 6 years of service (unless called to active duty)
- Honorable discharge or continued service required
- You can include weekend drills and summer camps in that service time
The minute you’re called for active duty for 90 days or more? Boom—you may qualify just like an active-duty member.
VA Loan Credit Score and Income Requirements
Alright, this is where a bunch of myths pop up. No, you don’t need 800 credit. No, you don’t need to make six figures either. But lenders still want to see that you’re financially responsible.
Here’s what actually matters:
- Credit score: Most lenders want 620+, but it’s not set in stone
- Stable income: You need enough money coming in to cover the mortgage and your other debts
- Debt-to-Income (DTI) ratio: Typically needs to be under 41%
Pro tip: Even if one lender turns you down, don’t assume you’re out. Another might approve you. Lenders handle VA loan eligibility differently.
VA Loan Limits: Is There a Cap on How Much I Can Borrow?
Used to be a limit. Not anymore—at least not for vets with full entitlement. If you’re using your benefit for the first time (or fully repaid a previous loan), you can borrow as much as you’re approved for based on income and credit. Used your VA loan before or have a partial entitlement left? Then limits may apply based on your county’s conforming loan limits.
Pro tip: You may want to check out how real estate investing fits into the picture by browsing posts like how to start investing in real estate with little money for next steps once you’ve got the house.
Can I Use a VA Loan More Than Once?
Absolutely. That’s another big myth.
Your VA loan benefit isn’t a “one-and-done” thing. Here’s how it plays out:
- Restoration of entitlement: Pay off your VA loan (typically by selling the house), and you can apply all over again.
- Partial entitlement: You may still get another loan if you have room left under the cap.
- Multiple loans: In some scenarios, it’s possible to carry more than one VA loan if you’re relocating due to service.
It’s way more flexible than people think—it comes down to entitlement and local loan limits.
Can I Buy a Rental Property with a VA Loan?
Nope. This is where some people mess up.
VA loans are for primary residences only. The deal is—you gotta live in the home, at least at first. But there’s a move called “house hacking.” You buy a multifamily property (up to 4 units), live in one, rent out the others. Totally allowed with a VA loan. That’s how you start stacking some passive income early. Want to learn more about how house hacking works? This blog from reAlpha will show you step-by-step.
