FCB Mortgage Partners
How do I obtain a VA Loan (General Guidelines)?
- Contract to purchase: Select a home, discuss the purchase with the seller or selling agent, and possibly sign the purchase contract conditioned on approval of a VA guaranteed loan.
- Loan application: Select your lender if you haven’t done so already. Provide your Certificate of Eligibility to the lender and complete the loan application. The lender will develop all credit information and request that the VA assign a licensed appraiser to determine the reasonable value for the property. You will pay for the credit report and appraisal unless the seller agrees to pay. Either the VA or the lender will issue a value for the property for loan purposes based on the appraisal.
- Loan decision: If the established value is acceptable to all parties and the lender determines that your are credit and income qualified, the loan may be approved. Most lenders are authorized to make this decision.
- Loan closing: You (and spouse, if applicable) attend the loan closing and sign the note, mortgage, and other related papers. The lender or closing attorney will explain the loan terms and requirements as well as where and how to make the monthly payments. When the loan is reported to the VA, the VA annotates your Certificate of Eligibility to reflect the use of entitlement and returns it to the applicant. (The loan closing procedure may vary in some states.)
GENERAL RULES OF ELIGIBILITY
Military Service Requirements for VA Loan Eligibility:
*NOTE: Applications involving other than honorable discharges will usually require further development by VA. This is necessary to determine if the service was under other than dishonorable conditions.
Wartime – Service during:
WWII 09/16/40 to 07/25/47
Korean 06/27/50 to 01/31/55
Vietnam 08/05/64 to 05/07/75
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 discharged for a service connected disability.
Peacetime – Service during periods:
07/26/47 to 06/26/50
02/01/55 to 08/04/64
05/08/75 to 09/07/80 (enlisted)
to 10/16/81 (officer)
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 be eligible if discharged for a service connected disability.
Service after 09/07/80 (enlisted) or 10/16/81 (officer)
If you were separated from service which began after these dates, 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 discharged under conditions other than dishonorable, or
- Completed at least 181 days of active duty and been discharged under the specific authority of 10 USC 1173 (Hardship), or 10 USC 1171 (Early out), or have been determined to have a compensable service-connected disability;
- Been discharged with less than 181 days of service for a service-connected disability. Individuals may also be eligible if they were released from active duty due to an involuntary reduction in force, certain medical conditions, or, in some instances for the convenience of the Government.
Gulf War – Service during period 08/02/90 to date yet to be determined
If you served on active duty during the Gulf War, you must have: - 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
- completed at least 90 days of active duty and been discharged under the specific authority of 10 USC 1173 (Hardship), or 10 USC 1173 (Early out), or have been determined to have a compensable service-connected disability, or
- been discharged with less than 90 days of service for a service-connected disability. Individuals may also be eligible if they were released from active duty due to an involuntary reduction in force, certain medical conditions, or, in some instances, for the convenience of the Government.
Active Duty Service Personnel
If you are now on regular active duty (not active duty for training), you are eligible after having served 181 days (90 days during the Gulf War) unless discharged or separated from a previous qualifying period of active duty service.
Selected Reserves or National Guard If you are not otherwise eligible and you have completed a total of 6 years in the Selected Reserves or National Guard (member of an active unit, attended required weekend drills and 2-week active duty for training) and - were discharged with an honorable discharge; or
- were placed on the retired list; or
- were transferred to the Standby Reserve or an element of the Ready Reserve other than the Selected Reserve after service characterized as honorable service; or
- continue to serve in the Selected Reserves.
Individuals who completed less than 6 years may be eligible if discharged for a service- connected disability.
You may also be determined eligible if you: - are an unremarried spouse of a veteran who died while in service or from a service connected disability, or
- are a spouse of a serviceperson missing in action or a prisoner or war.
[NOTE: Also, a surviving spouse who remarries on or after attaining age 57, and on or after December 16, 2003, may be eligible for the home loan benefit. However, a surviving spouse who remarried before December 16, 2003, and on or after attaining age 57, must apply no later than December 15, 2004, to establish home loan eligibility. VA must deny applications from surviving spouses who remarried before December 16, 2003 that are received after December 15, 2004.]
Eligibility may also be established for: - certain United States citizens who served in the armed forces of a government allied with the United States in WWII.
- 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 & Atmospheric Administration, merchant seaman with WW II service, and others.
