Can Reservists get VA Loans?

Eligibility for VA Home Loans as a Reservist

Basic Eligibility Requirements

Reservists must meet the following criteria to qualify for a VA home loan:

1. Service Duration:

• 6 Years of Service in the Selected Reserve:

• You must have completed at least six years of honorable service in the Selected Reserve.

• Activated for Federal Duty:

• If you were called to active duty for at least 90 consecutive days under Title 10 orders, you may qualify even if you haven’t served six years.

2. Discharge Status:

• Honorable Discharge: You must have been honorably discharged, placed on the retired list, or transferred to the Standby Reserve or an element of the Ready Reserve other than the Selected Reserve after honorable service.

Exceptions to the 6-Year Rule

Reservists who were discharged due to a service-related disability before completing six years are also eligible.

Benefits of a VA Home Loan

1. No Down Payment:

• Unlike conventional loans, VA loans don’t require a down payment, making it easier to purchase a home.

2. No Private Mortgage Insurance (PMI):

• VA loans don’t require PMI, reducing monthly payments compared to other loans.

3. Competitive Interest Rates:

• Interest rates for VA loans are typically lower than conventional loans.

4. Flexible Credit Requirements:

• The VA loan program offers flexibility for borrowers with less-than-perfect credit scores.

5. No Loan Limits:

• Eligible borrowers can qualify for the full loan amount without caps (as of January 2020).

Required Documentation for Reservists

To apply for a VA loan, reservists must provide the following documents:

1. Certificate of Eligibility (COE):

• Reservists can obtain their COE through the VA or their lender.

• Required documents include:

• DD Form 214 (for activated reservists).

• Statement of Service (for current reservists).

• Retirement Points Statement (for those who served six years but were never activated).

2. Proof of Service:

• Provide official documentation showing your years of service and discharge status.

How to Apply for a VA Loan as a Reservist

1. Determine Eligibility:

• Ensure you meet the service requirements.

2. Obtain Your COE:

• Apply online through the VA’s eBenefits portal or ask your lender to assist.

3. Find a VA-Approved Lender:

• Choose a lender experienced in VA loans to guide you through the process.

4. Submit Your Application:

• Provide all necessary documents, including your COE, proof of income, and credit history.

5. Close on Your Home:

• Once approved, work with your lender and real estate agent to finalize the home purchase.

Related: Best VA Loan Lender

Final Thoughts

VA home loans offer incredible benefits to reservists, helping them achieve homeownership with fewer financial barriers. If you’re unsure about your eligibility, reach out to the VA or a trusted lender to review your service record and determine your qualification.