By Peter Gaytan

Buying a home? A VA Guaranteed Home Loan is one of the benefits of service to your country. Since 1944, the VA has guaranteed over 18.2 million loans totaling more than $980 billion. The VA makes about 29 million loans each year. The average loan amount is $178,000. This month we’ll discuss the VA home ownership benefits you’ve earned.

Who Qualifies for a VA Loan?

To determine if your service meets eligibility requirements, check the VA categories below. All classifications presume you have been discharged under other than dishonorable conditions.

Wartime Service

Wartime eligibility includes service during:

• World War II   9/16/1940 to 7/25/1947
• Korea              6/27/1950 to 1/31/1955
• Vietnam            8/5/1964 to 5/7/1975

 

For those who served in wartime, you must have at least 90 days on active duty and been discharged under other than dishonorable conditions. If you served less than 90 days, you may be eligible if you were discharged for a service connected disability.

Peacetime

Peacetime eligibility includes service during:

7/26/1947 to 6/26/1950

2/1/1955 to 8/4/1964

5/8/1975 to 9/7/1980 (enlisted)

5/8/1975 to 10/16/1981 (officer)

For those who served in these peacetime periods, you must have served at least 181 days of continuous active duty and been discharged under other than dishonorable conditions. If you served less than 181 days, you may still be eligible if you were discharged for a service-connected disability.

For Enlisted Service after 9/7/1980; For Officer Service after 10/16/1981

If you began enlisted service after September 7, 1980, or officer service after October 16, 1981, you need to meet the following criteria in order to be eligible for a VA loan.

You must have completed 24 months of continuous active duty or the full period (at least 181 days) for which you were ordered or called to active duty and been:

1. discharged under conditions other than dishonorable, or
2. You must have completed at least 181 days of active duty and been given a hardship discharge (10 USC 1173) or Early Out (10 USC 1171), or have been determined to have a compensable service-connected disability
3. You have been discharged with less than 181 days of service for a service-connected disability.

 

Some individuals may be eligible if they were released from active duty due to an involuntary reduction in force, certain medical conditions, or for the convenience of the Government. Consult your local Veterans Affair officer to evaluate the specifics of your case.

Gulf War – Service during 8/2/1990 through the present (end date to be determined)

If you served on active duty during the period August 2, 1990 through the present, you must have:

1. Completed 24 months of continuous active duty or the full period (at least 90 days) for which you were called or ordered to active duty, and been discharged under conditions other than dishonorable, or
2. Completed at least 90 days of active duty and been given a hardship discharge (10 USC 1173) or an Early Out (10 USC 1173), or have been determined to have a compensable service-connected discharge, or
3. Been discharged with less than 90 days of service for a service-connected disability.

 

Some individuals may be eligible if they were released from active duty due to an involuntary reduction in force, certain medical conditions, or for the convenience of the Government. Consult your local Veterans Affair officer to evaluate the specifics of your case.

If You Served in Selected Reserves or the National Guard

You must have completed a total of six years in the Selected Reserves or National Guard (you must be a member of an active unit, attended required weekend drills and 2-week active duty for training) AND:

1. Were discharged with an honorable discharge, or
2. Were placed on the retired list, or
3. Were transferred to the Standby Reserves or an element of the Ready Reserve other than the Selected Reserve after service characterized as honorable, or
4. Continue to serve in the Selected Reserves.
5. You may still be eligible if you completed less than six years but were discharged for a service-connected disability.

 

Who Else Is Eligible for a VA Loan?

You may be able to establish eligibility if you are a United States citizen who served in the armed forces of a government allied with the United States in World War II. Also individuals with service as members in certain organizations such as Public Health Service officers, cadets at the United States Military, Air Force, or Coast Guard Academy, midshipmen at the United States Naval Academy, officers of National Oceanic and Atmospheric Administration, merchant seamen with World War II service. Consult your local Veterans Affairs office.

The unmarried surviving spouse of a veteran who died on active duty or as the result of a service-connected disability is eligible for the home loan benefit.

What Service Doesn’t Meet Eligibility Requirements?

The following are not eligible for VA-guaranteed home loans: Service in World War I, Active Duty for Training in the Reserves, and Active Duty for Training in the National Guard (unless “activated” under the authority of Title 10, U.S. Code, which is the United States Code for the Armed Forces, the governing military laws and powers).

However, those who have World War I and Active Duty for Training service may qualify for HUD/FHA veterans’ loans. This is a separate program and the VA’s role is merely to determine the eligibility of the veterans and, if qualified, issue a Certificate of Veteran Status to be used to secure a HUD/FHA loan benefit for veterans.

Can I still qualify for a VA loan if I did not receive an honorable discharge?

Maybe. If you received a general discharge or a discharge under other than honorable conditions, eligibility for a VA loan is more difficult to attain. Consult your VA regional office.

Next week: How the Loan Program Works

Peter S. Gaytan is the author of For Service to Your Country, The Insider’s Guide to Veterans’ Benefits (Citadel, 2008), available from Amazon, Barnes and Noble, and other booksellers. He has served as an advocate in securing and protecting the earned benefits of America’s veterans for more than a decade. Gaytan is the Executive Director of the American Legion, the largest veterans service organization in America.

*Material released with permission of the authors.