Obtaining a VA home loan is one of the best ways to purchase a home. The VA home loan program was established shortly after World War II as a way to help veterans of the war qualify for home ownership. Owning a home was and still is considered a key step toward building wealth, and many studies have shown that owning real estate is a key factor in building generational wealth. Over the following decades, the program has been credited with helping millions of veterans and their families qualify for a mortgage and find a path toward owning a home.

Veteran's Administration loans require zero money down and no Private Mortgage Insurance (PMI). Not needing to save money for a down payment can often shave off the time it takes to buy a home. Furthermore, eliminating Private Mortgage Insurance will definitely save some funds on a monthly basis.

Of course, the first step in getting a VA loan is determining whether or not you are eligible. While the program is intended to help veterans, the VA has specific guidelines on who qualifies for a Certificate of Eligibility. Obtaining this certificate is crucial; there is no way to go forward in the loan process without having one of these certificates.

In order to get a Certificate of Eligibility, a service member must meet certain requirements. 

A service member served 90 consecutive days of active service during wartime.

The Veteran's Administration has prepared a list of the conflicts that qualify as "wartime." Specifically, any servicemember who served after August 2, 1990, will have met the minimum active-duty service requirement if they served for one of the following:

• At least 24 continuous months
• A full period of at least 90 days for which the servicemember was called or ordered to active duty
• At least 90 days if the servicemember was discharged for a hardship or a reduction in force
• Less than 90 days if the servicemember was discharged for a service-connected disability

If your service were before August 1, 1990, the minimum requirements of service needed to qualify for a VA loan would vary based on your exact service dates. In general, however, a service member will need to meet at least one of the following requirements:

• Active-duty service of at least 24 continuous months
• At least 181 days of service in a combat zone 
• At least 181 days during wartime or peacetime if the servicemember was discharged for a hardship or as part of a force reduction
• Less than 181 days of service if they were discharged for a service-connected disability

Because determining eligibility for service that took place before August 1, 1990, can be complicated, it's generally recommended that a veteran review the requirements here: https://www.va.gov/housing-assistance/home-loans/eligibility. If you still have questions, please do not hesitate to reach out or visit our website at https://azhousetreasure.com/. We will be happy to help.

A servicemember served 181 days of active service during peacetime.

Peacetime service generally only refers to service members who served on active duty. It does not apply to Reservists, even though Reservists are required to muster at least once a month and for two weeks a year. In order to qualify under this rule, the 181 days must be consecutive. That means that event Reservists who have served this amount of time over the course of multiple years typically would not qualify under this rule.

Be aware that all 181 days must be served and recorded before a service member applies for a Certificate of Eligibility. This is true even if a service member has signed paperwork stating that their commitment will require them to give this amount of service or more in the future or if the service member can produce orders that state they will be required to serve for this amount of time. The only way to get a Certificate of Eligibility under this requirement is to show that the time requirement has already been fulfilled.

A Reservist has at least six years of service in the National Guard or Reserves or served at least ninety days under Title 32 orders.

If you are a Reservist, you must have served at least six years in the Reserves in order to qualify for a VA Certificate of Eligibility. Be aware that while these six years do not necessarily have to be consecutive, you will want to talk to your loan officer to explain the situation if they are not consecutive years. There is a potential for a lot of confusion with this requirement, and often the best course of action is to talk with one of our loan agents to guide you through the process.

The spouse of a service member who died while serving or due to a service-related disability.

Widowed spouses of service members who passed in combat or due to a service-related disability are also eligible for a Certificate of Eligibility for a VA loan. Note that this does not apply to all dependents, only a widowed spouse. Children of veterans, including minor children, cannot qualify for a Certificate of Eligibility. This rule also applies to the adult caretakers or guardians of any orphaned children; these individuals are not eligible for VA loans at this time. There are other types of assistance that may be available, however. Talk to one a loan officers if you are in this situation to learn about your options.

If you're thinking about applying for a home loan and you think you're eligible for a VA loan, contact us. Even if you're still determining if you qualify, our trained staff will be able to assist you throughout the entire home loan and real estate purchase process.