More VA Loan Myths

Our last post on VA loans and the myths that sometimes misinform potential VA loan applicants included a discussion on who is eligible for a VA loan. All current and former military members can become eligible for a VA home loan after serving a minimum amount of time on duty. Those minimums vary depending on when the military member came on active duty, whether they served in wartime and what kind of discharge they received.

There are other determining factors if the applicant was in the Guard or Reserves, but the minimum time on active duty is one of the basic requirements. These minimum duty time requirements are among the most misunderstood aspects of getting a VA home loan.

Military members are not automatically eligible for a VA mortgage when they sign up for military service, or even when they graduate from basic training. The minimum duty time must be met.

Another myth about VA home loans is that only honorably discharged military members are qualified to apply for a VA certificate of eligibility. This is not true. Depending on the length and nature of military service, many veterans may apply for a VA loan as long as their discharge was not dishonorable. There is no reason why a vet should hesitate to apply for a VA home loan with an administrative separation, medical discharge or any other discharge rating classified as "not dishonorable" on their DD Form 214.

In some cases where discharge status could affect eligibility for a VA loan, the Department of Veterans Affairs reserves the right to review applications and make determinations on a case-by-case basis.

This could come into play where a veteran is having a Discharge Review Board reassess the nature of his or her discharge or when a discharge has recently been upgraded by such a board.