How to Qualify for a VA Loan: What Veterans and Military Members Need to Know

If you’ve served, you’ve probably heard the VA home loan is a great deal. It is. Most eligible veterans and service members can buy a home with no down payment and no monthly mortgage insurance.

So how do you qualify? In short, you need enough military service to get a Certificate of Eligibility (COE), credit and income a lender can approve, and a home that passes the VA appraisal.

Gershman Mortgage has been helping families buy homes since 1955, and VA loans are a big part of what we do. Here’s what you need to know.

What Is a VA Loan and How Does It Work?

A VA loan is a mortgage backed by the U.S. Department of Veterans Affairs. The VA doesn’t lend you the money. A VA-approved lender like Gershman Mortgage does.

Here’s the key part: the VA promises to cover a portion of the loan if something goes wrong. That promise lowers the risk for lenders, which is why VA loans can offer no down payment and no monthly mortgage insurance.

The program started in 1944 as part of the GI Bill. More than 80 years later, it’s still one of the best benefits you earned by serving.

Who Is Eligible for a VA Loan?

Veterans loan eligibility mostly comes down to your service history. Here’s who generally qualifies:

• Veterans. Most veterans qualify after 90 days of active duty during wartime or 181 days during peacetime. Some service periods have different rules.
• Active-duty service members. You can typically use your benefit after 90 days of continuous service.
• National Guard and Reserve members. You generally qualify after six years of service, or after 90 days of active duty (with at least 30 days in a row) under certain orders.
• Surviving spouses. Spouses of service members who died in the line of duty or from a service-connected disability. In most cases, the spouse can’t have remarried.

Want the full breakdown by service period? The VA lays it all out on its eligibility page.

How to Get Your Certificate of Eligibility (COE)

Your Certificate of Eligibility, or COE, is the document that proves to your lender you’ve earned the VA loan benefit.

Good news: you usually don’t have to chase it down yourself. Your Gershman Mortgage loan officer can often pull it online through the VA’s system in a few minutes. No extra paperwork on your end.

If the system can’t confirm your service automatically, we’ll tell you exactly what we need. For most veterans, that’s a DD-214, the form you got when you left active duty.

Not sure if you qualify? Talk to a Gershman Mortgage loan officer. We’ll check your eligibility for free.

VA Loan Requirements

Once your service checks out, lenders look at three things: your credit, your income, and the home itself.

What’s the Minimum Credit Score for a VA Loan?

The VA doesn’t set one. Each lender sets its own.

At Gershman Mortgage, we can work with credit scores as low as 580 That’s often lower than what you’d need for a conventional loan.

Got a few dings on your credit? Talk to us anyway. A lower score doesn’t automatically mean no, and we can tell you what would help.

VA Loan Income Requirements

There’s no minimum income for a VA loan. What matters is whether the new payment fits your budget.

First, we look at how much you earn compared to what you owe each month. That’s called your debt-to-income ratio, or DTI. The VA generally looks for 41% or less, but it’s a guideline, not a hard cutoff.

Then the VA checks something most loans don’t: residual income. That’s the money you’d have left each month after your mortgage, other debts, and taxes are paid. The amount you need depends on your family size and where you live.

If there’s enough left over for groceries, gas, and real life, that’s a good sign. It’s the VA’s way of making sure the payment actually works for you.

VA Appraisal Requirements (and Why It’s Not a Home Inspection)

Every VA loan needs a VA appraisal. A VA-approved appraiser checks two things: that the home is worth what you’re paying, and that it meets the VA’s Minimum Property Requirements.

In plain terms, the home has to be safe, sound, and livable. Think a working roof, heat, and safe drinking water.

Here’s where people get mixed up. The appraisal is not a home inspection. An inspector digs into things an appraiser won’t, like the age of the water heater or whether the outlets are wired right.

A home inspection isn’t required for a VA loan. We still strongly recommend one. It’s how you find out about the stuff an appraiser won’t look for.

Benefits of a VA Home Loan

• No down payment. Eligible buyers can finance 100% of the purchase price.
• No monthly private mortgage insurance (PMI). Most low-down-payment loans add PMI to your monthly payment. VA loans don’t.
• Lower rates, often. VA rates often run lower than conventional rates.
• Limits on closing costs. The VA caps some of the fees lenders can charge, and sellers can help cover some of your costs.
• No prepayment penalty. Pay your loan off early without extra fees.
• You can use it again. Your VA loan benefit isn’t a one-time deal. More on that in the FAQs below.

VA vs. FHA vs. Conventional Loans at a Glance

	VA loan	FHA loan	Conventional loan
Minimum down payment	0%	3.5%	As little as 3% for some buyers
Mortgage insurance	None monthly. One-time funding fee instead	Upfront fee plus a monthly premium	Monthly PMI if you put down less than 20%
Minimum credit score	Set by the lender	580 for 3.5% down	Usually 620
Who can use it	Eligible veterans, service members, and surviving spouses	Anyone who qualifies	Anyone who qualifies

VA Loan FAQs

How many times can you use a VA loan?

As many times as you want, as long as you have entitlement available.

Entitlement is the amount the VA agrees to back on your loan. When you pay off a VA loan and sell the home, your full entitlement usually comes back and you can use it again. In some cases, you can even have two VA loans at the same time.

Every situation is a little different, so we’ll walk through your numbers with you.

Do VA loans have PMI?

No. VA loans don’t have monthly private mortgage insurance, even with zero down. Instead, there’s the one-time funding fee, and some borrowers are exempt from that too.

Do I need a down payment with a VA loan?

Usually not. If you have your full entitlement, you can buy with 0% down.

If part of your entitlement is still tied up in another VA loan, and the home costs more than what’s left, you may need some money down. We’ll tell you upfront so there are no surprises.

Can you get a VA loan with bad credit?

Possibly. The VA doesn’t set a minimum score, and VA loans tend to be more forgiving than conventional loans. At Gershman Mortgage, we work with scores as low as 580. If you’re not there yet, we’ll show you what to work on.

Can National Guard and Reserve members get a VA loan?

Yes. You generally qualify after six years of service, or after 90 days of active duty (including 30 days in a row) under certain orders.

Are VA loans only for first-time home buyers?

No. First-time buyers love them, but you can use a VA loan whether it’s your first home or your fifth. It just has to be the home you live in.

Can I use a VA loan to buy a condo or multi-unit property?

Yes. You can buy a single-family home, a VA-approved condo, or a property with up to four units, as long as you live in one of them.

How long does it take to close a VA loan?

At Gershman Mortgage, most VA loans close in about 30 to 45 days. We underwrite loans in-house, which means fewer handoffs and fewer surprises along the way.

How to Start the VA Loan Process

1. Check your eligibility. Make sure your service history meets the VA’s rules.
2. Get your COE. Your loan officer can usually pull it for you.
3. Get prequalified, then pre-approved. Prequalifying is a quick estimate of what you can afford. Pre-approval goes deeper. We review your credit, income, and debts so sellers know you’re serious.
4. Find your home. Work with a real estate agent who knows VA loans.
5. Close on your loan. We’ll guide you through the appraisal, underwriting (the final review of your loan), and closing day.

Working with an agent who knows VA loans matters too. Check out our guide for real estate agents: VA Home Loans for Military Families: What Every Real Estate Agent Should Know

Want the details on our VA loan program? Visit us here to learn more.

Ready to Use Your VA Loan Benefit?

Gershman Mortgage has helped families finance homes since 1955. Our loan officers work with VA loans all the time, so we know where the paperwork tends to snag and how to keep things moving.

Not sure if you qualify? Ask us. It costs nothing to find out.

You’ve earned this benefit. Let us help you use it. Start Your VA Pre-Approval Today.

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At Gershman Mortgage, communities, families, and homes are at the heart of what we do. We’ve been doing this since 1955 – over 70 years of helping people finance homes across the Midwest and beyond. We’re independently owned, underwrite loans in-house and are licensed in 22 states. Built on the core values of honesty, integrity, entrepreneurial spirit, and customer-first service, we’re committed to providing an exceptional homebuying experience. Our goal is simple: to exceed expectations and build lifelong relationships. NMLS #138063 16253 Swingley Ridge Road Suite 200 Chesterfield, MO 63017 (800) 457-2357 Equal Housing Lender. Serving borrowers in: Alabama, Arkansas, Colorado, Florida, Georgia, Illinois, Indiana, Iowa, Kansas, Kentucky, Louisiana, Mississippi, Missouri, Nebraska, North Carolina, North Dakota, Ohio, Oklahoma, South Carolina, Tennessee, Texas, Wisconsin