Are There VA Loans for the National Guard?

One of the greatest benefits of serving your country is that it rewards you with perks not available to civilians. The ability to purchase a home with the favorable terms of a VA loan is one such advantage. While there are no specific VA loans for national guard service members, national guards do qualify for the same VA loan as other military persons.

Note that the VA and the lenders providing the loan do not create programs for different branches of the military. So, general information that works for one service member, tends to apply to the other.

What Is a VA Loan?

The U.S. Department of Veterans Affairs provides many programs to help active and discharged military persons assimilate into and adjust to civilian life. One example of this is the VA loan, which makes it easier for military persons to buy a home.

The program requires no down payment and no mortgage insurance. Instead, qualifying persons pay a small funding fee. While the VA backs the loan, it is still issued by private lenders, such as credit unions and banks. Should you later wish to refinance, there are also streamlined processes in place.

How Do National Guards Qualify for VA Loans?

Before you can obtain a VA loan, your lender requires proof that you are eligible. This proof comes from the VA in the form of a Certificate of Eligibility. Note that the COE does not guarantee the bank will give you a loan. You still need to meet the lender’s credit and income requirements for the home you have in mind.

Even though national guards do not have separate VA loans, their eligibility requirements are different from most other service members and veterans. For example, you may need to have served 90 days of active duty between now and August 2, 1990.

Outside of this, you may need six years of creditable service in the National Guard during any time period. Additionally, at least one of the following statements must be true:

  • You are still serving in the National Guard.
  • You were placed on the retirement list.
  • You received an honorable discharge.

What About Former National Guards Without Honorable Discharges?

If you received anything other than an honorable discharge, you might not qualify for a VA loan. The good news is you might still have the opportunity to change this. In some cases, you can request a review of your discharge case or apply to get the discharge upgraded. The less serious the offense that led to the dishonorable discharge, the more successful your chances are of getting an upgraded status.

How Can National Home Loans Assist With Your VA Loan Needs?

Buying a home can be a stressful experience, especially when it comes to the finance process. We know you have far more important things to focus on, so we do everything we can to ensure a hassle-free process. Our team can help you determine your rates, how much house you can afford and what alternatives to consider if you are not eligible for a VA loan. Requests your rates today.

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Written By

John Giannattasio

John Giannattasio is an independent mortgage broker based in San Diego. He brings a wealth of diverse business knowledge and experience to his mortgage practice, which results in a stress-free, seamless, and strategic experience for his clients.

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