Are You Missing Out on Your VA Home Loan Benefits? 90% of Eligible Veterans Don’t Know This

Imagine securing a home loan with zero down payment, lower interest rates, and no private mortgage insurance (PMI) all while leveraging benefits you’ve earned through service. That’s exactly what VA home loans offer to eligible active-duty service members, veterans, National Guard members, reservists, and some surviving spouses.

But here’s the catch: many eligible individuals miss out on this opportunity simply because they don’t know they qualify.

A recent study by the National Association of Realtors (NAR) found that a significant portion of eligible veterans do not take advantage of VA loans despite their favorable terms.

This blog will break down VA home loan eligibility so you can determine if you qualify and how to take advantage of this benefit.

The Department of Veterans Affairs (VA) categorizes eligibility into four primary groups:

If you are currently serving, you may qualify under the 90-Day Rule:

1. Requirement: At least 90 consecutive days of active duty service.
2. Documentation Needed: A Statement of Service signed by leadership from your unit or personnel office, which includes:

• Full name

• Social Security Number (SSN)

• Entry date on active duty

• Point of Contact (POC)

Eligibility for veterans depends on when you served:

1. Served between May 8, 1975 – Sept. 7, 1980:

• At least 181 continuous days of active service

• Less than 181 days if discharged for a service-connected disability

2. Served between Sept. 8, 1980 – Aug. 1, 1990:

• At least 24 continuous months or full period of call to duty (181+ days)

• Less than 181 days if discharged due to hardship, reduction in force, or service-connected disability

3. Served from Aug. 2, 1990 – Present:

• At least 24 continuous months or 90+ days of active duty

• Less than 90 days if discharged for service-connected disability

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• At least 90 days of non-training active duty service, OR

• At least 90 days of active duty service, including 30 consecutive days

• 6 creditable years in the National Guard and an honorable discharge or retirement

1. At least 90 days of active duty time since Aug. 2, 1990
2. Six creditable years in the Selected Reserve AND one of the following:

• Honorably discharged

• Placed on the retired list

• Transferred to Standby Reserve

• Currently serving in Selected Reserve

Spouses of deceased veterans may be eligible if one of these applies:

• Veteran died in service or from a service-connected disability

• Veteran is missing in action (MIA) or a prisoner of war (POW)

• You didn’t remarry before age 57 or before Dec. 16, 2003

• The veteran had a total disability and later passed away (even if the disability wasn’t the cause of death)

The COE confirms your qualification for a VA loan. You can get it through:

• The VA eBenefits portal

• Your lender (they can often request it for you)

• Submitting VA Form 26-1880 via mail

Not all lenders offer VA loans. Choose a lender familiar with VA loan processing to ensure a smoother experience.

A pre-approval letter strengthens your offer when purchasing a home. It shows sellers that your financing is secure.

You can use a VA loan to buy:

• A single-family home

• A condo (must be VA-approved)

• A multi-unit property (up to 4 units, if you live in one)

The VA requires an appraisal to ensure the home is safe and worth the purchase price before finalizing the loan.

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1. No Down Payment Required – Unlike conventional loans, which often require 3-20% down, VA loans allow you to buy a home with $0 down.
2. Lower Interest Rates – VA loan rates are usually 0.5% - 1% lower than conventional mortgages.
3. No Private Mortgage Insurance (PMI) – Conventional loans require PMI unless you put 20% down, but VA loans eliminate this cost.
4. Flexible Credit Requirements – While a good credit score helps, VA loans have more lenient credit guidelines than conventional loans.
5. Limited Closing Costs – The VA sets limits on what closing costs veterans can be charged, making home buying more affordable.

If you’re eligible for a VA home loan, you’re in one of the best mortgage programs available. With zero down payment, lower interest rates, and no PMI, this loan option makes homeownership more affordable and achievable for those who served.