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can a reservist get a va loan, home promise, va loans,

Can a Reservist Get a VA Loan?

The VA loan program provides helpful and unique benefits for active service members, veterans, and their families. As long as they meet specific requirements, Reservists and National Guard members are able to apply for the VA loan program and receive all of the benefits offered by the program. 

There are many current and former members of the National Guard or Army Reserve who don’t know that they can also qualify for VA loans and all its benefits. If you’re a Reservist considering your VA loan options, call HomePromise to speak with one of our experts at 800-720-0250.

Requirements for Reservists and National Guard Members to Apply for VA Home Loans

You might be asking yourself, can I get a VA loan as a Reservist? The answer may be yes, but you must meet specific service requirements in order to qualify. In order to be eligible for a VA home loan, Reservists and National Guard members must have completed at least 6 years of honorable service, been honorably discharged for a service-related disability, or been called for active duty service for at least 90 consecutive days. 

The below chart describes the requirements Reservists and National Guard members must meet when applying for VA loans: 

VA Loan Eligibility Requirements for Reservists and National Guard Members
  • Completed 6 years of honorable service
  • Called for active duty service for 90 consecutive days
  • Honorably discharged for a disability connected to your service

How Does a Reservist Go About Getting a VA Loan?

As a Reservist or National Guard member, in order to apply for a VA loan you will need to present your Certificate of Eligibility. When applying for a VA home loan, this is the most common form of documentation that we will require from you in order to proceed with the loan. 

If you need to apply for your Certificate of Eligibility, as a VA approved lender HomePromise has authority from the Department of Veterans Affairs’ to get your Certificate of Eligibility for you. We provide you with a Form 26-1880 and then we are able to get your Certificate of Eligibility (“COE”) online.  In many cases we can get your COE instantly.

In addition to providing your Certificate of Eligibility, our HomePromise VA home loan experts will also review your credit score and income sources when determining your eligibility. Call HomePromise at 800-720-0520 to receive your free quote! 

VA Loan Benefits Available for Reservists and National Guard Members

The VA loan program provides a variety of VA home loan benefits to veterans and their families who qualify. These benefits include no required down payments, no monthly private mortgage insurance (PMI), competitive interest rates, limits on closing costs, and options for approval of loan applications with lower credit scores. The VA home loan benefits can help veterans and their families who qualify save thousands of dollars when buying or refinancing their home. VA home loan benefits are lifetime benefits so you can use them many times. 

Many consider the biggest benefit of the VA home loan program is not having to pay for a down payment on your home. Most people who are not veterans need to save for many years before they have enough money to cover the down payment on a home. Minimum down payment requirements for civilians range from 3.5% to as much as 5%, adding up to thousands of dollars due at closing.

The VA home loan program does not require down payments, saving you the stress of having to pay thousands of dollars when purchasing your home. 

The Department of Veterans Affairs does not set credit score requirements in order for service members, veterans, and their families to qualify for a VA home loan. If you have a lower credit score, this means that you may still qualify for a mortgage and receive competitive interest rates. The below chart lists various credit scores and whether they are commonly considered poor, fair, good, or great: 

Rating Credit Score Ranges
Poor 300-579
Fair 580-659
Good 660-719
Great 720-799
Fantastic 800-850

If you have what’s considered a fair, or even good credit score, the VA home loan program may still offer you more competitive interest rates than you would receive otherwise. VA interest rates are typically up to 1% better than regular interest rates on mortgages. Over the life of your loan, this can save you thousands, if not tens of thousands, of dollars. Lower interest rates mean more savings. 

Another money-saving benefit of the VA loan program is the exemption from paying private mortgage insurance, commonly referred to as PMI which is paid monthly. Buyers who obtain a conventional mortgage are required to have PMI unless they make a huge down payment of 20% of the sales price of their home.  This monthly payment protects lenders in case the homeowner defaults on their mortgage. 

Through the VA home loan program, borrowers do not have to obtain and pay for monthly PMI. This can also help service members, veterans, and their families save thousands of dollars over the life of their loan. Not having to pay PMI when obtaining a mortgage gives you more buying power when buying a home or refinancing your existing home. 

VA Funding Fee for Reservists

When applying for a VA loan and taking advantage of all of the benefits they provide, Reservists are not exempt from paying the VA funding fee. The VA funding fee is a one-time fee that is added to the cost of your VA loan and is typically paid at closing. 

The VA funding fee is a one-time payment added onto the cost of the VA loan paid by the service member, veteran, or surviving spouse. The purpose of adding this fee to VA loans is to help cover any losses from defaulted loans. It also makes sure the program stays healthy and is still available for service members and their families in the future.

Receive a Free Quote for a VA Home Loan from HomePromise

HomePromise is here to help you with all of your VA home loan needs! We are proud to offer service members and their families some of the most competitive VA loan origination fees in the country on top of our flexible and knowledgeable service from VA home loan experts. 

We offer military members and their families the option to apply online or over-the-phone. HomePromise is a lender approved with the U.S. Department of Veterans Affairs to provide VA home loans. 

Call HomePromise at 800-720-0250 to learn what benefits are available to you through the VA loan program! We consider the unique circumstances of each veteran and their families when determining eligibility for VA home loans. 

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