Facts About Veterans Administration Home Loans

What is a VA loan? Who qualifies?

VA Home Loan Lingo

• The guaranteed amount of a VA loan is called an entitlement.
  
• The current maximum entitlement for loans up to $144,000 is $36,000, with the exact figure determined by your loan amount.
  
• The maximum entitlement for VA home loans over $144,000 is $60,000.

An entitlement is not a cash payment to you or to the bank. It is the amount the VA promises will be paid to the lender if you default on your loan. Should that happen, the VA may pursue you to recover those funds.

Who Is Eligible for a VA Loan?

Wartime/Conflict Veterans who were not dishonorably discharged, and served at least 90 days:

World War II

• September 16, 1940 to July 25, 1947

Korean Conflict

• June 27, 1950 to January 31, 1955

Vietnam Era

• August 5, 1964 to May 7, 1975

Persian Gulf War

• Check with VA regional office for specific eligibility.

Afghanistan and Iraq

• Check the VA's Web site for eligibility guidelines for current service in Afghanistan and Iraq.

Peacetime Service
Peacetime service of at least 181 days of continuous active duty with no dishonorable discharge. If you were discharged earlier due to a service-connected disability, you should speak with the regional VA office to verify eligibility.

• July 26, 1947 to June 26,1950

• February 1, 1955 to August 4, 1964, or

• May 8, 1975 to September 7, 1980 (enlisted) or to October 16, 1981 (officer)

• Enlisted veterans whose service began after September 7, 1980, or officers whose service began after October 16, 1981, must normally have served at least two years.

Reserves and National Guard
Members who have completed six years of service and have been honorably discharged (or are still serving) may be eligible for a VA loan. Contact your regional VA office for more details.

Other Qualifying Service
Other types of service that may make you eligible for a VA loan:

• Certain US citizens who served in the armed forces of a government allied with the United States during World War II.

• Surviving spouses of eligible persons who died as the result of service or service-connected injuries. The surviving spouse must not have remarried.

• The spouse of any member of the Armed Forces serving on active duty who has been listed as a prisoner of war or missing in action for more than 90 days.

Anyone with questions about eligibility should speak with their regional VA office.

What is a Certificate of Eligibility?
It is a document issued by the VA that lets lenders know you are eligible to apply for a VA loan. The certificate does not guarantee the bank will approve your credit application.

Page 2, Pros and Cons of a VA Home Loan