How Much Military Service Is Required for a VA Home Loan

By Davina Price

The U.S. Department of Veterans Affairs, or VA, backs home loans to qualified veterans and active-duty military personnel. An active-duty service member must have 181 days of service to qualify for a VA loan. Banks and other mortgage lenders provide the loans, with the VA as a co-signer of sorts. Qualified home buyers receive 100 percent financing and incur little out of pocket expense for closing costs. The veteran must provide a Certificate of Eligibility to an approved lender. Veterans and National Guard members who have met military service time requirements are also eligible to receive a Certificate of Eligibility. You can seek a Certificate of Eligibility online..

During times of war, the veteran must serve at least 90 days of active duty and receive an honorable discharge. World War II, and the Korean and Vietnam Wars are included. During peacetime, the veteran must serve 181 continuous days on active duty and receive an honorable discharge. Veterans who don't meet these time requirements may be eligible if they were disabled as a result of their service.

Service members must serve for 24 continuous months on active duty and receive an honorable discharge to be eligible for a VA loan. Those who do not serve 24 months but complete the full term of their service -- at least 181 days on active duty -- are eligible as well. In addition, veterans with a service-connected disability but unable to meet the time requirement are still eligible for a VA loan.

Service members with 24 consecutive months on active duty after Aug. 2, 1990, are eligible for a VA loan. The service member must receive an honorable discharge. Ninety days of service are required for those honorably discharged early for hardship. Veterans with service-related disabilities who do not meet the time requirement are eligible as well. If the service member is released for an involuntary reduction of force, or certain medical condition, he still may be eligible for a VA loan.

National Guard members not called for active duty service are still eligible for a VA loan. The guard member must have provided six years of service and attended weekend drills and the required two-week annual training. Those still serving, honorably discharged, placed on a retirement list or Standby Reserve can apply for an eligibility certificate. Guard members with service-related disabilities and less than six years served are still eligible for VA home financing.

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