How to qualify for a VA loan: Service requirements, COE, and credit

Written by Samantha SheltonNMLS 1647301Updated October 2026

Qualifying for a VA loan takes three things: eligible military service, a Certificate of Eligibility (COE) that proves it, and a lender’s approval on credit and income. For most borrowers the service gate is 24 continuous months of active duty, 90 total days during an earlier wartime period, 181 continuous days during an earlier peacetime period, or six creditable years in the National Guard or Selected Reserve.

Here’s the surprise: the Department of Veterans Affairs sets no minimum credit score and no maximum loan amount for a veteran with full entitlement. Both ceilings come from lenders. The VA does set a 41% debt-to-income benchmark, a residual income floor that varies by region and household size, an occupancy rule, and an appraisal.

Learn how VA qualification works – service minimums by era, how to pull your COE in minutes, what lenders look for, and what Michigan veterans should check. Still comparing programs? Start with our Loan Types & Programs guide and our guide to government-backed loans.

Key takeaways:

• Service is the first gate: 24 continuous months of active duty, 90 total days in a wartime era, 181 continuous days in a peacetime era, or 6 creditable years in the Guard or Selected Reserve typically establishes eligibility.
• The COE is the proof: Your Certificate of Eligibility verifies that service to the lender, and most lenders pull it electronically in minutes using 3 pieces of information – your Social Security number, date of birth, and service dates.
• Credit rules come from lenders, not the VA: The VA sets no minimum score but benchmarks debt-to-income at 41%, so when your score sits near 620 or your ratio runs higher, the lender you pick decides the answer.

What is a VA loan, and why does it matter?

A VA loan is a mortgage made by a private lender and partially guaranteed by the U.S. Department of Veterans Affairs, and that guarantee is why nearly 90% of VA-backed loans are made with no down payment at all.¹ See the VA’s official home loan program overview.

The guarantee replaces mortgage insurance. There is no monthly mortgage insurance premium on a VA loan – the biggest payment advantage over FHA and low-down-payment conventional financing. The program also caps certain lender closing costs and bars prepayment penalties. Our guide to VA loan benefits for veterans puts numbers on each; the VA loans hub collects the rest.

In exchange, most borrowers pay a one-time VA funding fee, a percentage of the loan amount. With less than 5% down it is 2.15% for a first use of the benefit and 3.3% for a subsequent use; 5% down drops it to 1.5%, and 10% down to 1.25% (VA fee schedule effective April 7, 2023). It can be financed, and is waived entirely for veterans receiving VA compensation for a service-connected disability, surviving spouses receiving Dependency and Indemnity Compensation, and active-duty members documenting a Purple Heart before closing.

Do you meet the VA service requirements?

Service eligibility depends on when you served, not just how long. The shorthand – 90 days wartime, 181 days peacetime – holds for older eras, not after August 2, 1990.

Active-duty minimums by service era

• August 2, 1990 to present: At least 24 continuous months, or the full period you were called to active duty (at least 90 days). Shorter service qualifies under a qualifying discharge exception, and under 90 days qualifies if you were discharged for a service-connected disability.
• September 8, 1980 to August 1, 1990: At least 24 continuous months, or at least 181 days under a qualifying exception.
• May 8, 1975 to September 7, 1980: At least 181 continuous days.
• Vietnam era, Korean War, and World War II: At least 90 total days.

National Guard and Reserve requirements

Guard and Reserve members qualify two ways: at least 90 days of non-training active-duty service, or six creditable years in the National Guard or Selected Reserve with continued service or an honorable discharge. For the Guard, the 90-day route requires Title 10 duty.

Surviving spouses and discharge status

Surviving spouses can qualify in their own right, generally through Dependency and Indemnity Compensation or as the spouse of a service member listed as missing in action or held as a prisoner of war. A spouse who remarried on or after age 57 and on or after December 16, 2003 can still establish eligibility; one who remarried earlier had to apply by December 15, 2004.

Character of service must be other than dishonorable. Honorable and general (under honorable conditions) discharges clear routinely; other-than-honorable and bad-conduct discharges get individual determinations. If your DD214 shows anything but “Honorable,” request your COE early.

What is a Certificate of Eligibility, and how do you get one?

A Certificate of Eligibility is the VA document that tells a lender you qualify and how much entitlement you have left, and most lenders retrieve it electronically in minutes. No VA loan closes without one. Work it as a four-step checklist:

• Step 1 – Separated veterans, pull your DD214: Member copy 4, which shows character of service and the narrative reason for separation.
• Step 2 – Active duty, get a statement of service: Signed by your commander, adjutant, or personnel officer, showing name, Social Security number, date of birth, duty entry date, lost time, and command.
• Step 3 – Guard and Reserve, pull points and orders: Activated members need a DD214 or DD220 with orders; never-activated members need a statement of service showing creditable years, plus a points statement or NGB-22.
• Step 4 – Surviving spouses, file the right form: VA Form 26-1817 if you receive DIC; VA Form 21P-534EZ with the marriage license and death certificate if you don’t.

If the automated system can’t confirm your record, mail VA Form 26-1880 – far slower. Our guide to buying a home with a VA loan shows where it lands.

How much entitlement do you have?

Entitlement is what the VA pays your lender if you default, and it drives loan size. Basic entitlement shows as $36,000 on your COE, and above $144,000 the VA guarantees 25% of the loan amount. Since January 1, 2020, there are no county loan limits for a veteran with full entitlement – the VA does not cap what you can borrow. Your loan is capped by the appraised value or purchase price, whichever is lower, and by what the lender approves.

Partial entitlement is different. If you already have a VA loan outstanding or lost one to a short sale or foreclosure, remaining bonus (tier 2) entitlement is measured against the county conforming loan limit – a 2026 baseline of $832,750 for one unit, higher in high-cost counties (FHFA, 2026). That’s when a down payment reappears: not because the VA requires one, but because the entitlement math does. Refinancing a VA loan you’re keeping is its own path – see VA IRRRLs.

What credit score and DTI do VA lenders require?

The VA requires no minimum credit score. Every threshold you’ve been quoted – 620, 640, 660, 580 – is a lender overlay added on top of VA guidelines. A denial is a denial from one lender, not from the program.

The VA does publish a debt-to-income benchmark of 41%. Above it, the loan can still be approved with written justification signed by the underwriter’s supervisor – and if residual income beats the guideline by at least 20%, no second-level review is required (38 CFR 36.4340). Residual income, not the ratio, is the test. The CFPB explains how lenders calculate your debt-to-income ratio; myFICO covers what goes into the FICO score lenders pull.

Here’s how the three main low-down-payment programs compare on what decides approval.²

Align Lending is not affiliated with, endorsed by, or acting on behalf of the U.S. Department of Veterans Affairs or any government agency. VA loan programs are offered through participating lenders and not all applicants will qualify.

Notice what the table doesn’t contain: a VA credit score. Align works with multiple wholesale lenders whose VA overlays differ – some stop at 620, some go lower on reserves or residual income. That spread is why you shop a VA file, not apply once. Our VA loan tips cover what to fix first; our government-backed loans overview sets VA beside FHA and USDA.

How VA residual income works

Residual income is what’s left each month after your mortgage payment, taxes, insurance, estimated utilities and maintenance, and every other debt. The VA sets minimums by region and family size, and Michigan sits in the VA’s Midwest region. For loan amounts of $80,000 and above there, the requirement is $441 for a household of one, $738 for two, $889 for three, $1,003 for four, and $1,039 for five, plus $80 per additional member up to seven (38 CFR 36.4340).

Put that to work. Say a family of four in Waterford carries a 46% debt-to-income ratio, five points above the benchmark. If documented residual income comes to $1,300 a month, that clears the $1,003 Midwest figure by roughly 30% – past the 20% cushion that removes second-level review.³ A file that looks marginal on ratio alone can be routine on the VA’s real test.

Do you have to live in the home?

Yes. You must certify that you intend to occupy the property as your home, and the VA treats occupancy within 60 days of closing as the “reasonable time” standard. Longer works when you certify a specific future date and a particular future event – a retirement, the end of a deployment – makes it realistic. A spouse can satisfy occupancy for a deployed active-duty member. The rule blocks rentals and vacation homes, not moving later. Our VA home buying walkthrough covers documentation.

What the VA appraisal checks

A VA appraisal does two jobs: it establishes a reasonable value, and it confirms the home meets the VA’s Minimum Property Requirements – the standards keeping the collateral safe, structurally sound, and sanitary. Think working mechanicals, a sound roof, safe access, adequate water and sewage, and no observable hazards.

An appraisal is not a home inspection, and the appraiser isn’t looking out for you the way an inspector does. Get one anyway. If a property fails an MPR item, the usual paths are seller repairs, a renegotiated price, or an escrow holdback. Building has its own rulebook – see VA construction loans.

What Michigan veterans should know

Two Michigan items change the arithmetic on a VA file; one assumption about down payment help runs backwards.

• Michigan sits in the VA’s Midwest residual income region: Your qualifying figure is the Midwest column – $1,003 for a family of four on a loan of $80,000 or more (38 CFR 36.4340) – not the higher West or Northeast numbers.
• The disabled veterans property tax exemption is 100%, not partial: Michigan exempts a qualifying disabled veteran’s principal residence from property taxes entirely under MCL 211.7b, on an affidavit (Treasury Form 5107) filed with the local assessor. You qualify if the VA rated you permanently and totally disabled at the 100% rate, certified you for specially adapted housing assistance, or rated you individually unemployable. Because taxes flow into escrow, that lowers the payment used in your DTI and residual income test.
• MSHDA down payment help usually doesn’t pair with a VA loan: An MI Home Loan first mortgage can itself be VA, FHA, RD, or conventional, but MSHDA lists the MI 10K DPA Loan – up to $10,000 as a 0% non-amortizing second, repaid when you sell, refinance, pay off the first mortgage or stop living in the home – on FHA, RD, and conventional firsts only. The MI Home Loan carries a 640 minimum credit score and a statewide sales price limit of $566,355 after June 1, 2026 (MSHDA).
• Use the VA’s own concession rule instead: The VA allows seller concessions up to 4% of the property’s reasonable value, covering the funding fee, prepaid taxes and insurance, and discount points. On a $250,000 purchase that’s up to $10,000 in seller-paid help – MSHDA’s order of magnitude, on a zero-down loan. More local plays: the VA loans hub.

FAQ: Qualifying for a VA loan

Here are answers to common questions about qualifying for a VA loan.

What credit score do you need for a VA loan?

The VA sets no minimum credit score. Individual lenders set their own overlays, and most look for a score near 620. Some lenders approve scores in the 580s when the file shows strong residual income, low debt, or reserves. Because overlays vary widely from lender to lender, a borrower turned down at one shop can often be approved at another with the same credit profile – our VA loan tips cover what to strengthen first.

How long does it take to get a Certificate of Eligibility?

Most lenders pull a Certificate of Eligibility electronically in minutes using your Social Security number, date of birth, and service dates. If the automated system cannot confirm your record, you can apply through the VA’s online portal or mail VA Form 26-1880, which typically takes several weeks. Guard and Reserve members often need a points statement or NGB-22 to complete the request. See where it falls in the VA home buying timeline.

Can you use a VA loan more than once?

Yes. VA entitlement can be restored and reused after you sell the home and pay off the loan, and many veterans use the benefit several times over a career. You may also hold two VA loans at once using remaining entitlement, which is common during a permanent change of station. Your COE shows how much entitlement you currently have available. If you’re keeping the home and only want a lower payment, a VA Interest Rate Reduction Refinance Loan carries a 0.5% funding fee.

Do surviving spouses qualify for a VA loan?

Many do. Surviving spouses of service members who died in the line of duty or from a service-connected disability can qualify for VA home loan benefits, and are typically exempt from the VA funding fee. The spouse applies for eligibility using VA Form 26-1817 and generally must not have remarried, though certain remarriage exceptions apply after age 57. Our overview of VA loan benefits covers what the benefit is worth month to month.

The bottom line on qualifying for a VA loan

To qualify for a VA loan you need eligible service, a Certificate of Eligibility, and a lender’s approval on credit and income. The service gate is typically 24 continuous months of active duty, 90 total days in a wartime era, 181 continuous days in a peacetime era, or six creditable years in the Guard or Selected Reserve. The VA sets no minimum credit score and no maximum loan amount with full entitlement – it sets a 41% debt-to-income benchmark residual income can override, a 60-day occupancy standard, and an appraisal. Every credit cutoff you hear belongs to a lender, which makes it negotiable.

If you’re ready to put your VA benefit to work, talk to Align Lending – we’ll shop your scenario across our network of VA-approved wholesale lenders and show you which overlays your file clears, side by side. Call 248-506-5727 or start online today.

Footnotes:

1. Align Lending is not affiliated with, endorsed by, or acting on behalf of the U.S. Department of Veterans Affairs or any government agency. VA loan programs are offered through participating lenders and not all applicants will qualify. Return to text.

2. Align Lending is not acting on behalf of or at the direction of FHA or HUD. FHA credit score, loan-to-value, qualifying ratio, and loan limit rules are set by HUD in Single Family Housing Policy Handbook 4000.1 and in annual loan limit mortgagee letters, and are subject to change. Return to text.

3. Example figures in this article are hypothetical and for educational purposes only; they do not constitute an advertisement of credit terms or a rate quote under federal or state lending laws. Your qualifying income, debts, residual income, and approval depend on your application, your documentation, and the lender’s guidelines. Return to text.

Figures current as of August 2026; verify with the linked source before relying on them. Sources: service eligibility minimums by era, National Guard and Selected Reserve requirements, character-of-service standards, surviving spouse eligibility and remarriage rules, and Certificate of Eligibility documentation including VA Forms 26-1880, 26-1817 and 21P-534EZ, U.S. Department of Veterans Affairs (va.gov, “Eligibility for VA home loan programs” and “How to request a COE”). Nearly 90% of VA-backed loans made with no down payment, va.gov (VA home loans). VA funding fee rates of 1.25%, 1.5%, 2.15% and 3.3% on purchase loans and 0.5% on an IRRRL, effective April 7, 2023, and the funding fee exemptions, va.gov (VA funding fee and loan closing costs). Basic entitlement of $36,000, the 25% guaranty above $144,000, and the removal of county loan limits for veterans with full entitlement effective January 1, 2020, va.gov (VA home loan entitlement and limits). No monthly mortgage insurance premium on VA-backed loans, limits on closing costs, and the right to prepay without penalty, Consumer Financial Protection Bureau. Debt-to-income guideline of 41%, the supervisory justification requirement above 41%, the 20% residual income exception, the Table of Residual Incomes by Region including the Midwest figures of $441, $738, $889, $1,003 and $1,039 for loan amounts of $80,000 and above plus $80 per additional family member, and the composition of the Midwest region, 38 CFR 36.4340. Occupancy certification, the 60-day reasonable-time standard, the specific-future-date exception, and spouse occupancy for deployed service members, VA Lender’s Handbook (VA Pamphlet 26-7), Chapter 3. Minimum Property Requirements of safe, structurally sound and sanitary housing, VA Pamphlet 26-7, Chapter 12. Seller concessions limited to 4% of the established reasonable value, VA Pamphlet 26-7, Chapter 8. FHA minimum decision credit score of 580 for 96.5% loan-to-value, 500 to 579 limited to 90% loan-to-value, and ineligibility below 500, HUD (FHA Single Family Housing Policy Handbook 4000.1). 2026 FHA forward mortgage loan limits of $541,287 (floor) and $1,249,125 (ceiling) for one-unit properties, effective for case numbers assigned on or after January 1, 2026, HUD No. 25-145. 2026 baseline conforming loan limit of $832,750 for one-unit properties, Federal Housing Finance Agency. Removal of the 620 minimum representative credit score for Desktop Underwriter loan casefiles created on or after November 16, 2025, Fannie Mae Selling Guide Announcement SEL-2025-09; 97% loan-to-value purchase options requiring 3% down, Fannie Mae. Michigan disabled veterans property tax exemption criteria, full exemption of the principal residence, and the Form 5107 affidavit, MCL 211.7b and Michigan Department of Treasury. MI Home Loan eligible first mortgage types (Conventional, FHA, VA and RD), MI 10K DPA Loan maximum of $10,000 with 0% non-amortizing terms available on FHA, RD and Conventional first mortgages, the 640 minimum credit score, and the statewide sales price limit of $566,355 after June 1, 2026, Michigan State Housing Development Authority.

This article is for informational purposes only and is not intended to provide legal, financial, or tax advice. Loan program rules, funding fee tiers, residual income tables, loan limits, and state and local tax exemptions change and vary by borrower, property, and county; confirm your figures with the VA, HUD, MSHDA, and your Loan Estimate, and consult a qualified professional about your situation. Figures shown are illustrative, are not a rate quote or an offer of credit, and are subject to change. Align Lending is an independent Michigan mortgage broker, NMLS #2041154, and is not affiliated with or endorsed by the U.S. Department of Veterans Affairs, FHA, or HUD.

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