VA Loan Requirements 2024

The minimum service requirements for a VA loan depend on your status and time served. Active-Duty Service Members and Veterans must meet one of the following conditions: 

• At least 90 consecutive days of active service during times of war 
• At least 181 days of service during peacetime 
• At least six years of service in the National Guard or Reserves 

Spouses of Military Members who died in the line of duty or suffered a major disability during their service also qualify for the loan. 

The COE confirms your length of service and character of service, along with the entitlement amount. Entitlement is the amount you have available for a guarantee on a loan. You must also meet credit income and standards to qualify for a VA-guaranteed loan. 

Normally, the lender can pull up this document with your Social Security number and date of birth. You do not need to provide a COE before submitting your loan application. 

Veterans shopping for lenders can request a COE ahead of time to show potential home loan providers. Doing so may speed up the loan application process once they choose a lender. 

Lenders — not the VA — set minimum credit requirements. For the most part, lenders require a FICO score of at least 620 to move forward with a loan. If you’re considering a more expensive property, a higher score may be beneficial. 

In some cases, lenders may accept lower credit scores. If they do, they may impose certain conditions to mitigate the additional financial risk. 

The VA does not have a mandatory minimum income for lending. Lenders will determine your debt-to-income (DTI). The lower this ratio, the better your chances are for securing favorable terms. Those with debt-to-income ratios of 41% or higher may require higher scrutiny during the lending process.  

VA requires residual income. This is the amount of discretionary income remaining (after the deduction of debts, other obligations, and monthly housing obligations) to cover family expenses.  The amount required is based on the loan size, the geographic location of the subject property, and your family size. 

The VA doesn’t restrict the type of home you buy if it’s a single-family residence serving as your primary address. However, the VA has established Minimum Property Requirements (MPRs) to protect your interests along with the lenders, servicers, and VA. All properties must meet these MPRs. Even though an inspection isn’t mandatory, it’s a very good idea to get one. An inspection will reveal conditions and issues that may need resolution before you buy. 

The one requirement for securing a VA loan is that you and your family use it as your main place of residence. Second homes and one-unit investment properties are ineligible to be purchased with a VA loan.  You may purchase a multi-unit property as long as you occupy one of the units as your primary residence.   

There are specific occupancy requirements for the applicable refinance type as noted below. 

The VA may require a one-time fee (Funding Fee) to cover its operational expenses. The funding fee can be remitted in cash at closing, financed into the loan amount, or paid by the lender or seller as part of the agreement. 

The funding fee is determined by several factors and can range from 0.5% (certain refinances) to 3.3%. The fee is determined by the transaction type, amount of down payment on a purchase (if applicable), type of refinance, and whether you have had a VA loan in the past. Some Veterans who meet certain requirements are exempt from the VA funding fee.