In a previous blog post, we covered eligibility requirements for VA home loans. The general rule states vets are eligible for VA home loans if they have served on or after September 15, 1940, have a minimum time in uniform as described in VA regulations and have a discharge that is anything but dishonorable.

Minimum service times for active duty members is different based on when the service occurred. For most modern soldiers, sailors, airmen, and marines, the two year rule applies. “A greater length of service is required for veterans who enlisted (and service began) after September 7, 1980, or entered service as an officer after October 16, 1981.”

“These veterans must have completed either 24 continuous months of active duty, or the full period for which called or ordered to active duty, but not less than 90 days (any part during wartime) or 181 continuous days (peacetime).”

But the rules change for Guard and Reserve members. VA home loan regulations state, “Members of the Reserves and National Guard who are not otherwise eligible for loan guaranty benefits are eligible upon completion of 6 years service in the Reserves or Guard (unless released earlier due to a service-connected disability.)”

“The applicant must have received an honorable (a general or under honorable conditions is not qualifying) discharge from such service unless he or she is either in an inactive status awaiting final discharge, or still serving in the Reserves or Guard.”

The reason VA requirements are worded as they are with regard to members who are “not otherwise eligible” is due in part to the fact that many Guard or Reserve members have transitioned from active duty service. Any military member doing so is not required to serve an additional six years in the Guard or Reserves before applying for a VA home loan. If they were eligible for a VA insured mortgage on or after active duty, they are still eligible when they begin serving part-time.

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