The First Step: Prove Your VA Loan Eligibility



The first step in the U.S./New York VA home loan process is to prove your eligibility as is applies to your service record. This is done by documenting your service and [usually honorable] discharge.

The first document you will need is your DD214?your discharge papers. You should keep several copies of this most essential service document. If you need to file for a Certificate of Eligibility, you will need the DD214 as proof of service and discharge status. If you do not have it, you can write to the National Personnel Records Center and file form SF-180 to receive a copy, which you will then use to file for a certificate of eligibility.

Many veterans do not need to even go through the process of filing for a Certificate of Eligibility with the DD214. An approved VA lender can use the ACE system, the Automated Certificate of Eligibility, to quickly and easily determine your VA loan eligibility. Only an approved VA lender can do this, so you do need to work with one to prove eligibility through the ACE system.

Proving Eligibility In Special Cases

According to VA loan program guidelines, you will not be eligible for a VA loan if you have a dishonorable discharge. However, VA loan eligibility under VA loan program guidelines are not always clear for discharges classified as "other than honorable." If your discharge status is "other than honorable," you should contact the local VA office and see about filing to reinstate your VA eligibility. You should not, however, automatically assume you do not have a right to a VA home loan.

The Next Step In The New York VA Home Loan Process

(Again, note that this process is the same for all states, and so applies to all eligible veterans in the U.S.)

After having proved your eligibility for a VA loan, you will be required to apply for your VA home loan in much the same manner as you would if you were applying for a traditional mortgage. You will need to provide information and documentation to your chosen lender, such as income statements, credit information, credit score, debt, and so on. Much of this VA lending information will be accessed on your behalf by the lender with your permission.

Once all the required VA lending information and eligibility is handled, the lender will then present you with an offer of a mortgage (or possibly a denial if you do not meet loan criteria?the VA loan is not guaranteed, it is still subject to income, creditworthiness, and verification). The rates and terms you are offered can and often will vary between lenders, and you can shop around, just as you would for any home loan.

VA eligibility is the first and most important step in applying for a VA home loan. That eligibility is your key to your benefits. You will still have to prove that you are capable of repaying your loan, as any homeowner would, but with the advantages of the VA loan program?including no down payment and lower rates?you will find it far easier to do so.