Can a Reservist Get a VA Loan? Guide for Military Members

If you are a reservist and you are planning to buy a house but do not have enough budget to buy a house, So you have a very good option, a VA loan. Yes, friends a VA loan is one such loan given to active-duty service members, veterans, and eligible surviving spouses to buy a condo or a home, but the question arises can a reservist get a VA loan or not? So let’s discuss this in detail today.

What is a VA loan and how does it work for reservists?

A VA loan is a type of mortgage specifically designed for veterans, active-duty service members, and some members of the National Guard and Reserves. These loans are backed by the U.S. Department of Veterans Affairs, which means that lenders have less risk when offering loans to eligible individuals.

This support allows VA loans to come with several benefits, such as no down payment requirement, lower interest rates, and no private mortgage insurance (PMI).

For reservists, VA loans work similarly to how they do for active-duty service members and veterans. To qualify, reservists must meet certain service requirements. (( Veterans United )) Generally, they need to have served for at least six years in the Selected Reserve or have been called to active duty for at least 90 days. If they meet these criteria, they can apply for a VA loan, just like other eligible military personnel.

Who is a reservist in the USA?

A reservist is a member of the United States military who serves part-time. Reservists typically train one weekend a month and two weeks a year, but they may also be called up for active duty in times of national emergency or war. Reservists serve in the Army Reserve, Navy Reserve, Marine Corps Reserve, Air Force Reserve, Coast Guard Reserve, or in the National Guard.

Can a reservist get a VA loan?

National Guard and Reserve members are eligible for VA loan benefits if they meet certain service requirements. Generally, they need to have completed at least six years of honorable service in the National Guard or Reserve to be eligible for a VA loan.

Then with this loan, he can buy any kind of house, single-family or multi-family, however, it has some different eligibility criteria which you have to fulfill and when you have sufficient amount, then you can close this loan.

When can a reservist use a VA loan?

A reservist can use a VA loan after meeting certain eligibility requirements. To qualify, they must have completed at least 6 years of honorable service in the Reserves or National Guard. Alternatively, they can qualify if they were honorably discharged due to a service-related disability or if they were called to active duty for at least 90 consecutive days. These criteria must be met to access the benefits of a VA home loan.

How many points does a reservist need to qualify for a VA loan?

To qualify for a VA loan as a reservist, you generally need to have earned enough retirement points equivalent to six “good” years. A “good” year means you have at least 50 retirement points in that year. So, in total, you would need 300 retirement points to meet this requirement. Keep in mind that this does not include any points from active duty or orders that are covered under new laws.

Eligibility requirements for VA loans for reservists.

To be eligible for a VA loan as a reservist, you must meet certain requirements. In addition to serving for at least six years in the Selected Reserve, National Guard, or another military branch, you must also have been discharged under honorable conditions.

Reservists must also meet some more eligibility requirements.

1. Active Duty: If you were activated for federal service, you need to have served on active duty for at least 90 days. The length of your active service can affect your eligibility.
2. Character of Service: If you have been discharged from service, your character of service will be assessed. This evaluation is essential for your VA loan eligibility.
3. Certificate of Eligibility (COE): To apply for a VA loan, you will need a COE. This document proves your eligibility and can be obtained through the VA website or your lender.
4. Credit and Income Requirements: Although the VA does not set a minimum credit score, lenders typically have their own requirements. You will also need to show stable income to qualify for the loan.
5. Intended Use of the Property: The home you are purchasing must be your primary residence. VA loans are not available for investment properties or vacation homes.

How does a reservist qualify for a VA loan?

To qualify for a VA loan as a reservist, you must obtain a Certificate of Eligibility (COE) from the Department of Veterans Affairs. You can apply for a COE online, through a VA-approved lender, or by mail. You will also need to provide documentation of your military service, income, and credit history.

When is a reservist considered a veteran?

A reservist is considered a veteran when they meet certain criteria. Specifically, if they have been deployed on federal active duty for at least 180 days, and they received a discharge that is better than dishonorable or bad conduct, they are classified as a veteran.¹

Additionally, a reservist can also be recognized as a veteran if they have served for at least 20 years, regardless of their discharge status.

How to apply for a VA loan as a reservist?

To apply for a VA loan as a reservist, you should follow these steps:

• Obtain a Certificate of Eligibility (COE) from the Department of Veterans Affairs.
• Find a VA-approved lender and apply for a VA loan.
• Provide documentation of your military service, income, and credit history.
• Complete the loan application process and wait for approval.

Can reservists use a VA loan multiple times?

Yes, reservists can use a VA loan multiple times as long as they have not exceeded their entitlement and meet the eligibility requirements.² The entitlement is the amount that the VA will guarantee for each borrower, and it is typically equal to the amount of the loan.

If you have used your entitlement for a previous VA loan, you may still be eligible for another VA loan if you have paid off the previous loan or if you are willing to sell the property and pay off the loan in full.