VA loans

Military Discharges and VA Loan Eligibility: A Reader Question

May 14, 2014

Military Discharges and VA Loan Eligibility: A Reader Question

108-logoA reader asks, “Box 23 on my DD214 states “Discharged”. I served 1yr and 2 months, my status was “Under Honorable Conditions (general)” Where I applied to get my COE, I was told I would be denied because in box 23 it needed to state more than just discharge, can I get a VA Loan still?”

There could be many reasons for what happened, but the bottom line is that anyone in this situation should contact the Department of Veterans Affairs right away to see if a corrected VA Certificate of Eligibility needs to be sent, or if the current COE is simply being misread somehow.

A lender may be able to give an answer based on previous experience, but in general it’s always best to go directly to the VA for assistance when paperwork may need to be amended, corrected, contested, or otherwise given a second look.

The VA Certificate of Eligibility is supposed to tell the lender several basic things including the applicant’s status at the time of the COE’s publication (eligible, how much remaining entitlement, etc) and also whether or not the applicant is currently exempt from paying the VA loan funding fee or currently required to pay it.

In general, VA home loans are available to any eligible veteran who qualifies. Under rules current at the time of this writing, unless a borrower has a discharge characterized as Dishonorable, he or she is eligible to apply for a VA loan assuming all other VA loan eligibility requirements are met. Military discharges characterized as “Other Than Honorable” are NOT a Dishonorable Discharge.

Any VA loan applicant who needs help obtaining a VA Certificate of Eligibility can work through the lender, apply online or contact the VA directly for assistance by calling 1-800-827-1000.

Do you have questions about VA home loans? Ask us in the comments section.

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