The VA loan programme currently has thousands of National Guard and Reserve troops qualified, and new legislation is extending eligibility to many more Guardsmen, women, and Reservists across the nation.
The VA home loan advantage, which enables qualifying purchasers to purchase with $0 down payment, the industry’s lowest average fixed interest rates, and more, can be accessed by service in the National Guard or Reserves. More Guardsmen across the nation are now eligible thanks to recent federal legislation.
For more than 30 years, VA loans have aided National Guard and Reserve members in purchasing homes.
What you should know is as follows.
Reserves and the National Guard are eligible for VA loans.
All prospective VA buyers must satisfy time-in-service requirements to be eligible for this perk, regardless of whether they are Regular Military, National Guard, or Reserve.
Veterans loans are normally available to National Guardsmen and Reservists who have served in:
Lenders will request your Certificate of Eligibility from the VA in order to confirm your eligibility for the benefit. This paperwork is not required to begin the house buying process, but it is required to close on a VA loan.
Obtaining a Certificate of Eligibility for the Reserves and National Guard
In some circumstances, lenders might get a Certificate of Eligibility with little information. Veterans and active military personnel could occasionally be asked to submit more paperwork.
A DD-214 may be required from Guardsmen and Reservists who served on active service. A points statement and a copy of their discharge papers may be required from reserve members.
Depending on your particular circumstance, you could have to offer:
- NGB-22 or NGB-23, the National Guard
- DARP Form FM 249-2E or ARPC Form 606-E for the Army Reserve.
- Navy Reserve Marine Corps: NAVMC HQ509 or NAVMC 798
- NRPC 1070-124 for the Navy Reserve
- Reserve Air Force: AF 526
- Reserve Coast Guard: CG 4174 or 4175
To learn more about proving eligibility and what it takes to get your COE in the National Guard, speak with a VA loan specialist.
Expanded eligibility for VA loans for the National Guard
More National Guard members are taking advantage of the VA loan benefit as a result of recent changes to federal legislation.
Only Guardsmen summoned to active duty pursuant to Title 10 orders were previously permitted to apply for a VA loan before the six-year point. Even though they served at least 90 days of active duty, those mobilised under Title 32 orders were unable to take advantage of the VA loan benefit early.
The Veteran Health Care and Benefits Improvement Act, which was passed in 2020, closed that gap by allowing National Guardsmen activated under Title 32 access as long as they serve a minimum of 90 days on active duty, 30 of which must be consecutive.
According to estimates, the modification extended the VA loan benefit to around 50,000 Guardsmen who assisted with the COVID-19 pandemic response. The change to Title 32 was also retroactive, so National Guardsmen who served in the past but didn’t have six years of service might be eligible.
Being qualified for a VA loan is an important factor, but you also need to adhere to government and lender requirements regarding your credit, income, and other factors.
Individual lenders set their own credit score standards for VA mortgages; the Department of Veterans Affairs does not. These differ from one organisation to the next, but generally speaking, you can anticipate requiring a credit score of at least 620 to qualify.
In a similar vein, VA loans don’t have any strict income limitations. Although your debt-to-income ratio (DTI), which shows how much of your gross monthly income is consumed by existing large loans, is taken into account by lenders. DTI limits might change depending on the lender and other variables.
Another VA policy that is based on discretionary income is the requirement that veterans with a DTI ratio over 41% satisfy a higher standard for residual income.
A excellent year is generally equivalent to at least 50 retirement points, and you’ll typically need at least six good years’ worth of points. If you have any concerns regarding your service record and possible VA loan eligibility, speak with a VA loan specialist.
Are National Guard and Reserve members eligible for VA loans? Absolutely. Every year, thousands of Guardsmen and Reservists use their VA loan benefit to buy or refinance a home.