In order to be considered for the VA home loan program, a borrower must meet military service requirements. The eligibility requirements vary depending on when the military service was completed, but can be summarized as follows:

• 90 days of active duty during wartime
• 181 days of continuous active duty during peacetime
• 6 years of service for Reservist/National Guard

For applications involving military discharges that are other than honorable, the VA determines eligibility on a case-by-case basis.

A potential VA borrower must obtain a Certificate of Eligibility (COE) before applying for a veterans’ mortgage. The Certificate shows the lender how much entitlement a borrower has available.

Borrowers who are eligible for a VA loan can enjoy:

• No down payment (100% financing)
• No private mortgage insurance (PMI)
• Relaxed qualifying standards
• Competitive interest rates
• No penalties for mortgage pre-payment
• Cash-out and debt consolidation
• Streamline rate reduction

Ultimately, the VA determines whether a person is eligible for VA home loan benefits. For more information on your own eligibility, you can contact the U.S. Department of Veterans Affairs, or speak with a VA loan professional.