If you are a veteran or surviving spouse, the Veterans Administration (VA) may be able to guarantee your home loan. Even if you have already borrowed from the VA, you may qualify for another loan if you have repaid the previous loan.

Certificate of eligibility

To qualify for a VA loan, you must first obtain a Certificate of Eligibility from the VA. A veteran must provide either a DD Form 214, a statement of service, or documentation of service in the National Guard or Selected Reserves. The lender can apply for the Certificate of Eligibility on behalf of a veteran or surviving spouse.

Service requirements

You must meet certain service requirements to obtain a Certificate of Eligibility. Depending on the dates served and type of service, veterans and active duty personnel generally must have served at least 90 days to 24 months of active duty, and must not have received a dishonorable discharge. Veterans who served less than the specified number of days may qualify if they were discharged for service-connected disabilities or hardship.
Members of the Selected Reserves or National Guard qualify if they have served at least six years and were honorably discharged, retired, transferred to Standby or Ready Reserves, or are currently serving. Those who served less than six years qualify if their service ended due to service-related disabilities.

Surviving spouses

An unremarried surviving spouse may qualify for a VA loan if the veteran died during military service or from a service-connected disability, or if the serviceperson is a prisoner of war or listed as missing in action. A surviving spouse who has remarried after the age of 57 on or after December 16, 2003 may qualify.

Pre-qualify

A lender that participates in the VA loan program will review your credit history and income. After you inform the lender of your income and assets, the lender will estimate the loan amount you can afford to repay. You can then select a home based on this information.

Loan approval

Once you have selected a home, you and the seller will draw up a purchase agreement which lists the agreed-upon terms of the sale. The lender then asks the Veterans Administration for an appraisal of the property"s value. The loan amount cannot exceed the VA appraisal, and the buyer, seller and lender must agree with the VA appraisal before the sale can become final. If the lender approves the loan based on your credit history and income, you will receive the VA-guaranteed loan.