VA Loan Qualification for National Guard (Can anyone clarify the requirements?)

SrA Private RallyPoint Member — Fri, 08 May 2015 22:45:13 -0400

I'm looking to buy a new house in the upcoming future & would like to use my VA loan, however I'm a little confused on the requirements.

For NG, it says 6 years before eligible hover it also says 90 days continuous active duty service. I just spoke to DEERS last week & their records show I'm active duty status until October. I just got done with AIT almost a month ago, between BCT & AIT, it was a total of approx 7 months continuous active duty service. Does anyone know if I could use this as a loop hole or do I have to wait another 5 years before I can use it?

Response by MAJ Robert (Bob) Petrarca made May 9 at 2015 7:02 AM

MAJ Robert (Bob) Petrarca — Sat, 09 May 2015 07:02:41 -0400

Generally speaking, AD for training wouldn't count if you are NG, the 90 days would most likely have to be title 10 - federal activation like for a deployment. Have you talked with your S1? Like the good MAJ Ballinger suggested, call your local VA office and they would be able to help you out.

Response by SrA Private RallyPoint Member made May 9 at 2015 9:41 AM

SrA Private RallyPoint Member — Sat, 09 May 2015 09:41:55 -0400

MAJ Ballinger, that's where I found my initial information was on the VA website. I'll definitely have to continue looking into it.

MAJ Petrarca, I haven't spoke to my S1 yet but I plan on reaching out to them as soon as I in-process. My first drill with my home unit isn't until next weekend. I didn't think training would count but I was kind of hoping.

Thank you both for your insight! everyone that I know who has been in or is in the military is active duty & there are so many things that differ.

Response by COL Vincent Stoneking made May 9 at 2015 10:19 AM

COL Vincent Stoneking — Sat, 09 May 2015 10:19:20 -0400

As a matter of fact... (hope the formatting comes through)

Your request for a Certificate of Eligibility for Loan Guaranty Benefits is being returned because we need
the information listed below:
If you are a discharged member of the Selected Reserves or National Guard, please provide the following:
SELECTED RESERVE:
Point statements covering at least 6 years of creditable service.
Evidence of an Honorable Character of Service.
See below for additional information.
NATIONAL GUARD:
NGB 22 for each period of service that includes the Character of Service, OR
Point statements covering at least 6 years of creditable service and evidence of an Honorable Character
of Service.
See below for additional information.
In addition, if you were activated for federal service (Title 10 U.S.C.) at some point during your career,
please include the following:
FEDERAL ACTIVATION / DEPLOYMENT:
DD Form 214 that evidences such service. Please provide the DD Form 214 for each tour served.
For veterans discharged after October 1, 1979, be sure to provide Member Copy # 4 since we must
know the Narrative Reason for Separation and the Character of Service.
See below for additional information.
If you are a current member of the Selected Reserves or National Guard please provide the following:
Statement of Service letter
See below for additional information.
ADDITIONAL INFORMATION:
Selected Reserve members receive statements which itemize the points earned during each
anniversary period of service. The points may be itemized on a single statement, or they may be
itemized on several individual statements. Please provide a copy of every statement you possess. Also
include evidence of your Character of Service. A copy of DD Form 256 (wall certificate) is acceptable.
National Guard members receive point statements while serving, and are issued an NGB 22 upon
discharge. Please provide a copy of each NGB 22 earned that discloses the Character of Service.
•
•
••••••
•••
Selected Reserve & National Guard - In order for a year of service to have been deemed creditable, you
must have earned at least one Active Duty (ADT or IADT) point, or Inactive Duty point (IDT-drills) during
each 12 month period. Membership or correspondence points do not count. The 12 month anniversary
period commences on the month and day you joined the service.
If you had a break in service or a change in component, you must provide evidence of your points and
Character of Service for each period served. For example, if you were a member of the Army Reserves
for three years, and then served three additional years in the National Guard, we would need the point
statement and evidence of your Character of Service for your reserve service in addition to the
documentation required to evidence your National Guard service. This would also be required if you
served in the Army Reserves and had a break in service and then joined the Army Reserves once
again.
Selected Reserve and National Guard members who were activated for federal service during their tour
need to provide evidence that the tour was served under Title 10 USC orders. If the DD214 does not
identify Title 10 USC service, please provide a copy of the orders for that tour.
A Statement of Service letter must contain the following information:
Veteran's full name.
Veteran's social security number (last four digits is acceptable).
The date of entry onto reserve duty.
The duration of lost time (if any).
The name of the command providing the information (letterhead is sufficient).
If the veteran is an activated member of the National Guard or Reserve, the letter must also include:
The type of orders under which the veteran is serving (typically Title 10 U.S.C. or Title 32).
Whether the veteran is serving in a training status.
The date the veteran entered onto the current active duty status.
The letter must be signed by or at the direction of the adjutant, personnel officer, or the commanding officer
of your unit.
This letter can typically be provided to you by your Administration Department.
An official, computer generated letter is acceptable.
Please return your application with the requested information.
Sincerely,

Response by SFC Kenneth Hunnell made May 20 at 2015 6:39 PM

SFC Kenneth Hunnell — Wed, 20 May 2015 18:39:34 -0400

The most fail safe way of finding out is to apply for the Certificate of Eligibility. that would answer your question quickly.

Unless things have changed from when I was in the Regular Army.
1. You had to have served a continuous 180 days of federal service, excluding BCT and AIT
Homebuyers initially eligible for VA Loan benefits include those that are serving or have served in the United States military for only one the following time periods:
•90 consecutive days of service during war time
•181 consecutive days of service during peacetime
•6 years of service in the Reserves or National Guard
Certificate of Eligibility

The certificate of eligibility is a formal document that assures mortgage lenders that the homebuyer meets the basic service requirements. Many times, homebuyers hear that they must have a Certificate of Eligibility (COE) before applying for their loan, which isn’t true.

The COE can be acquired by your VA-approved lender, like VA Mortgage Center, through the Department of Affairs web portal, known as Web LGY. Web LGY is the VA's web-based loan guaranty system, and it's not accessible to the public and is for authorized VA lenders only.

Using your VA-approved lender to acquire your COE is often the quickest method, saving you the legwork of applying online or through the postal service.

Employment Eligibility and VA Loans

When evaluating employment, lenders want to ensure that a homebuyer has stable, reliable employment and that it is likely to continue for the foreseeable future. This is usually displayed by having at least two years of steady employment.

However, it is important to note that two years of steady employment isn’t the end-all. VA Loans do not have an exact length requirement for employment history, and many applicants are examined on a case-by-case basis.

For example, consider a veteran who recently separated from the military. Underwriters will look at the current or pending job and any specialized training to determine if it is sufficient. But, be prepared, since employment histories of less than two years will draw additional scrutiny, which is because the VA likely won’t guarantee a loan if they feel a potential borrower’s income is unreliable.

Credit History

A large benefit of the VA Home Loan is the relaxed credit requirements meant to provide military homebuyers with an accessible mortgage option. As for credit score, there is no pass or fail number, due to the number of factors considered, including assets, debt-to-income ratio and residual income; however, most lender will prefer to see a credit score of at least 620.

A Deeper Look at Service Requirements

According to the VA, those that do not meet the minimum service requirements, may still be eligible if their discharge was due to (1) hardship, (2) the convenience of the government, (3) reduction-in-force, (4) certain medical conditions, or (5) a service-connected disability.

Remember, when applying for a VA Home loan, they are just vouching for you. That means you have certain protections from unscrupulous lenders. The rest is on you.

Call the VA, "They will be able to answer your question"