VA Loan Requirements: Eligibility and Qualifications

VA loans provide military families with an avenue to affordable homeownership. These mortgages feature no down payment and more lenient credit and financial requirements than most other loans.

By Jennifer Sisson

Written by

Jennifer Sisson

Freelance writer

Jennifer Sisson has over five years of finance experience and is an investing, mortgage, real estate, and budgeting expert. Her work has been featured by Business Insider and FinanceBuzz.

Edited by Reina Marszalek

Written by

Reina Marszalek

Senior editor

Reina Marszalek has over 10 years of experience in personal finance and is a senior mortgage editor at Credible.

Updated January 24, 2025

Editorial disclosure: Our goal is to give you the tools and confidence you need to improve your finances. Although we receive compensation from our partner lenders, whom we will always identify, all opinions are our own. Credible Operations, Inc. NMLS # 1681276, is referred to here as “Credible.”

VA loans provide an affordable path to homeownership for many military families. They come with numerous benefits including no down payments, lenient credit and other financial requirements, and the ability to be used for various types of properties.

But before you apply for a VA mortgage loan, it’s crucial to understand the eligibility criteria to ensure the process goes smoothly. Whether you're applying for your first VA-backed loan, reusing your VA entitlement, or looking for a VA refinance loan, here's everything you need to know to get started.

What are the eligibility criteria for a VA loan?

VA loan eligibility can be broken down into three main components:

Veteran/active duty/spousal status of the borrower
Property standards
Requirements set by lenders

VA loans are available to veterans and active duty military members who have met the minimum service requirements or the surviving spouses of veterans. (If you were discharged under dishonorable circumstances, you are ineligible for a VA loan.)

The property must also meet the VA’s qualifications. It must be the borrower’s primary residence and meet certain safety and livability standards. The value must also not exceed typical conforming loan standards.

Note:

While the VA makes few financial requirements of borrowers (making VA loans some of the most accommodating mortgages available), lenders usually set their own requirements, such as minimum credit scores and income requirements that VA borrowers must meet.

How do I obtain a Certificate of Eligibility (COE)?

If you plan to apply for a VA loan, you must first obtain a certificate of eligibility (COE) from the VA. This certificate proves your VA loan eligibility.

To get a COE, fill out VA Form 26-1880. You can submit this online through your ID.me or Login.gov account, through your lender via a system called Web LGY, or by mail. To fill out the form, you’ll need a copy of your discharge or separation papers if you’re a veteran or a statement of service if you’re on active duty. The statement of service should be signed by your commanding officer and include:

Your name
Social Security number
Birthdate
Date you entered duty
Total number of creditable years of service
Duration of any lost time
Name of the command providing the information

If you apply for a COE online or through a lender, you may receive it instantly. If you apply by mail, however, it could take four to six weeks.

What are the VA loan service requirements?

Generally speaking, active-duty military, National Guard members, reservists, and veterans are eligible for VA-backed loans if they’ve given 90 consecutive days of service after 1990. (Rules regarding the length of service in other time periods and conflicts vary, so check the VA website for specifics.) Surviving spouses of veterans may also qualify for a VA loan.

What credit score is needed for a VA loan?

There is no VA loan minimum credit score requirement, but most lenders impose their own requirements for borrowers. Dan Rivisto, mortgage originator with Nexa Mortgages, notes that “Some lenders can go as low as 580, but most require a minimum of somewhere between 620 to 640.”

If you have poor or mediocre credit, it’s still worth shopping around. You may find a lender who will work with you to issue you a mortgage. However, borrowers with poor credit represent a higher risk to lenders, so they compensate by charging higher interest rates.

Tip:

Weigh your options and see whether it’s worth it to wait and raise your credit score or to go ahead and get a mortgage now.

What are the income and debt-to-income ratio requirements?

The maximum debt-to-income ratio (DTI) for a VA loan is 41%, though exceptions can be made if the borrower has sufficient residual income. Residual income is calculated as the amount remaining after accounting for debts, monthly shelter, food, health care, clothing, and gas.

Keep in mind:

If your DTI is over 41%, you must exceed the regional residual income level by at least 20%. So while there is no strict VA loan income requirement, income levels come into play if the DTI is sufficiently high.

VA loan FAQ

What is the VA funding fee?

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This is a one-time fee paid at closing to the borrower. Because VA loans do not require down payments or private mortgage insurance, the VA funding fee offsets some of the costs of servicing the VA loan. The fee runs between 1.25% and 3.3% of your loan amount based on whether you’ve used the VA loan benefit before and how large a down payment you make.

All VA loan borrowers must pay this fee unless they meet the requirements for an exemption, such as receiving a Purple Heart or receiving payments for a service-related disability.

Can I reuse my VA loan benefits?

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Yes, you can use the VA loan benefit more than once. “A veteran borrower can use their VA mortgage loan benefits again and again, provided the previous VA mortgage loan has been paid in full,” Rivisto says. “The Veterans Administration charges a funding fee for each VA loan, and it’s a little higher after the first use. In some unusual cases, a veteran borrower can have more than one VA mortgage at a time.”

In addition, VA loan benefits never expire. As long as you still have your full entitlement, you can get a VA loan, even if you served decades ago. You can also use your VA entitlement to refinance a property, even if it wasn’t financed with a VA loan originally.

Are there property requirements for VA loans?

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Yes, the VA has created minimum property requirements for a home secured by a VA loan. The full requirements are detailed on the VA website, but to sum up, the property must be a single real estate entity and be safe, sound, and sanitary. The value of the property must also not exceed conforming limits set by Fannie Mae and Freddie Mac, which is $806,500 for most of the United States. (The limit is higher in some high-cost-of-living areas.)

VA loans can be used for freestanding single-family homes, condos, multiplexes (up to four units), or manufactured homes.

How long does the VA loan approval process take?

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Approval can take a few days to a few weeks, depending on the complexity of the borrower’s situation and whether the lender needs to verify documents further or get extra documentation.

Can I get a VA loan with a previous bankruptcy?

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Yes. Bankruptcy doesn’t automatically disqualify you from getting a VA loan, though you may be subject to a waiting period. The VA considers your credit reestablished once you show two years of clean credit after bankruptcy. Each lender will have its own credit requirements and policies concerning bankruptcies.

However, if your bankruptcy stems from a foreclosure of a VA-backed home loan, you’ll have to repay what you owe before you can become eligible for another VA mortgage.

Meet the expert:

Jennifer Sisson

Jennifer Sisson has over five years of finance experience and is an investing, mortgage, real estate, and budgeting expert. Her work has been featured by Business Insider and FinanceBuzz.